For a long time, the transaction tax in Slovakia was a subject of disputes and criticism, and Prime Minister Robert Fico even called it "irreversible." However, it seems the situation is changing: the Prime Minister of Slovakia has ordered the preparation of the abolition of this tax from January 1, 2027. This decision, although requiring parliamentary approval, will be a significant relief for businesses and entrepreneurs.
The transaction tax (transakčná daň) was introduced on April 1, 2025, as part of a package of measures to consolidate public finances. Initially, it applied to all business entities — both sole traders (živnostníci — sole-trader license) and legal entities (companies). The tax rates were 0.4% of the amount of outgoing bank payments (with a maximum limit of 40 euros per transaction) and 0.8% for cash withdrawals without an upper limit.
Why did the tax cause criticism?
Since its introduction, the transaction tax caused a wave of dissatisfaction among entrepreneurs, employers, and the opposition. The main reasons for criticism were additional costs, administrative burden, and negative impact on the business environment.
Under pressure from the public and business, the government made the first concession. From January 1, 2026, sole traders (živnostníci — sole-trader license) and other individuals were exempt from paying the tax. However, legal entities continued to pay it.
The future of the transaction tax
Prime Minister Robert Fico ordered the Ministry of Finance to prepare all necessary legislative and technical measures to abolish the transaction tax from January 1, 2027. This decision is a significant turnaround, considering Fico's previous statements about the "irreversibility" of the tax.
However, the abolition of the tax is not yet final. It requires a change in the law and its approval in parliament. In addition, the government will need to find a way to compensate for the loss of hundreds of millions of euros in revenue to the state budget. Previously, Finance Minister Ladislav Kamenický estimated the revenue from this tax at 430–450 million euros.
This potential abolition could be an important step to improve business conditions in Slovakia and reduce the financial and administrative burden on companies.
