Abolition of the Transaction Tax for Sole Traders in Slovakia

The National Council of Slovakia has adopted an important decision that will significantly simplify business operations for thousands of entrepreneurs. Starting from 2026, a new law comes into force abolishing the transaction tax on financial operations for self-employed individuals (SZČO).

This change applies not only to individual entrepreneurs but also to freelancers, artists, athletes, and other professionals conducting business under independent registration.

Beginning January 1, 2026, these taxpayers will be exempt from paying transaction tax. This means that any transfers, payments, or operations made through the business accounts of sole traders will no longer be subject to additional charges.

However, legal entities (companies) will still be required to pay this tax — regardless of their turnover or business sector.

It’s important to note that banks will continue to withhold the transaction tax for self-employed individuals until the end of 2025, i.e., for all transactions made up to December 31, 2025.

This new regulation aims to reduce the administrative burden on small businesses, increase financial transparency, and support self-employed citizens who make a valuable contribution to the Slovak economy.

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