Since 2021, there has been a change in the application of the reduced 15% income tax rate. What income tax rates will legal persons apply in 2021? Which taxpayers will be able to apply a reduced income tax rate of 15%?
Our team of experts will inform you about basic changes of Slovak corporate taxes in 2021.
The new corporate and personal income tax rates will be applied for the first time and will apply in the tax period beginning no earlier than 1 January 2021.
Only legal persons with a turnover of up to € 49,790 will be able to apply a reduced income tax rate – 15% from 2021.
The income tax rate for selected legal persons was reduced to 15% by the approved amendment to the Income Tax Act in 2019. According to the previous amendment to the Income Tax Act, the reduced income tax rate could be applied by self-employed persons and legal entities with annual income up to € 100,000.
However, the amendment to the Income Tax Act, effective from 1 January 2021, regulates the reduction of the income tax rate to 15% only for legal persons whose taxable income (revenues) for the tax period does not exceed the amount stipulated by a special regulation, i.e. € 49,790.