Slovakia: New withholding tax rules for software payments

The Ministry of Finance has issued new guidance providing more precise rules on when payments for software are subject to withholding tax.

The guidance applies to all income of nonresidents derived from computer programs, including sales, licensing, provision of software as a service, and transfers of rights in software. It distinguishes between:

• Income from the use of the software itself
• Income from granting the right to use copyright
• Income from the provision of know‑how
• Income from the transfer of copyright

A key change is the more precise classification of these income types, along with the removal of reservations to Article 12 of the OECD Model Tax Convention.

In general:

• Payments for granting the right to commercially use software copyright and for providing know‑how related to software development are subject to withholding tax.
• Payments for software as a service, standard software products, and the transfer of software copyright are generally not subject to withholding tax, unless otherwise provided by an applicable income tax treaty.

The changes affect contracts if revenues are paid after December 31, 2025.

Read a March 2026 report prepared by the KPMG member firm in Slovakia