The Slovak Government is Ready to Partially Abolish the Transaction Tax

June 4, 2025

Prime Minister Robert Fico announced that the government has agreed on a draft law to partially abolish the financial transaction tax.

According to the proposal, individual entrepreneurs (živnostníci) and companies with an annual turnover of up to €100,000 will be exempt from paying the tax. This initiative was earlier proposed by Andrej Danko, chairman of the Slovak National Party (SNS), part of the ruling coalition.

The draft law is expected to pass all three readings in the National Council by mid-autumn, with the new provisions coming into effect on October 15, 2025.

The financial transaction tax was introduced as part of government measures to consolidate the state budget and has been in effect since April 1, 2025. It applies to nearly all monetary operations, both cash and cashless. The main rules are as follows:

• Entrepreneurs pay a 0.4% commission on every bank transaction, with a maximum fee of €40;
• A 0.8% fee is charged for cash withdrawals from bank accounts via ATMs or bank branches, regardless of the amount;
• A €2 tax is levied if a payment card is used at least once in a calendar year.

The primary goal of the tax is to replenish the state budget amid a growing deficit. However, many entrepreneurs and experts have already stated that the tax negatively impacts small businesses and creates additional administrative barriers.