Slovakia: Third package of consolidation measures approved by Parliament

Key direct and indirect tax changes for 2026

The National Council on September 24, 2025, approved the third consolidation of public finances in an accelerated legislative procedure. The law is still subject to the president's signature.

Key direct and indirect tax changes for 2026 include:

An increase in the progressivity of the individual (personal) income tax
A new tax band for the largest companies
An increase in the special levy rate for collective investment
Changes for self-employed persons—higher assessment base and increase in health levies
Changes to income tax during sick leave, maternity leave and sick pay
An increase in value added tax (VAT) on selected foodstuffs and introduction of reimbursement from primary materials
An increase in taxation of gambling and non-life insurance
A general tax pardon
50% reduction in VAT deduction for purchase or lease of ordinary passenger cars and some motorcycles

Read a September 2025 report prepared by the KPMG member firm in Slovakia

For additional information regarding the 50% reduction in VAT deduction for cars, read a September 2025 report prepared by the KPMG member firm in Slovakia

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Slovakia: Third package of consolidation measures approved by Parliament

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