The changes were approved in a very short time after their introduction by the new government. It appears as though individuals and employers affected by the measures may not have sufficient time to prepare and make any adjustments to policies and procedures before these changes become effective on 1 January 2024.
The increase of the health-care insurance rate on the side of employers will bring higher costs for employers, economic employers, or foreign payroll taxpayers in Slovakia, if their employee falls under the Slovak social security system.
The cancellation of several tax exemptions that relate to investments and related income, and the increased rate of tax on dividends will also have the effect of increasing the tax liability of taxpayers with investments.
Where appropriate, adjustments to policies, gross-up packages, and withholding taxes may need to be considered.
Each individual’s tax status should be determined in light of his or her particular situation.