The amendment to Act No. 235/2012 Coll. on special levy in regulated areas in Slovakia as amended (hereinafter referred to as the “Act”) had been anticipated for quite some time, and it was finally approved by legislators  as part of the Consolidation Act at the end of 2023. Before its adoption, the focus was primarily on the impact on the banking sector, which significantly contributes to financing the state budget with its profits. However, the changes are far-reaching.

What is the most significant change?

The most significant change in this Act is the expansion of the scope of regulated persons. From January 1, 2024, this Act applies not only to entities holding an authorization to perform their activities in areas such as energy, electronic communications, pharmacy, postal services, etc., but also to all persons or organizational units of foreign persons conducting activities based on authorizations issued by or granted by the National Bank of Slovakia. At the same time, a regulated person assumes that it will engage in regulated activities throughout the contribution period.

The Act lists some types of authorizations issued by the NBS, such as for banks, collective investment entities, and insurance companies. It is important to emphasize that these are examples, and therefore, from January 1, 2024, any person holding any authorization issued by the NBS may be a regulated person. For this reason, it is essential to note that it encompasses a wide range of activities, including banking, insurance, securities trading, collective investment, pension savings provision, financial intermediation, consumer credit provision, payment services, currency trading, etc.

What is the levy period, and when are levies due in Slovakia?

The levy period is the calendar month in which the regulated person is authorized to perform regulated activities. If you became a regulated person from January 1, 2024, and concurrently have an obligation to pay this levy, you must submit a notification to the levy administrator by January 31, 2024. In this notification, you must provide the financial results for the accounting period of the year 2022 and determine the coefficient as the ratio of regulated revenues (income) to total revenues (income) for the year 2022. The levy must also be paid within the same deadline. The paid levies will subsequently be offset against the financial results achieved in 2024.

When is the obligation to pay the special levy incurred?

The special contribution applies to regulated entities that have achieved a pre-tax profit of €3,000,000 in the monitored accounting period.

For persons considered regulated from January 1, 2024, transitional provisions apply, specifying that a regulated person under §3 para. 1 letter a) point 2 of the Act has the obligation to pay the special levy from January 2024 if its pre-tax profit for the immediately preceding accounting period before January 1, 2024, reached at least €3,000,000. The immediately preceding accounting period is considered the period for which the obligation to prepare a regular financial statement and submit it with a tax return by December 31, 2023, arose. If the accounting period coincides with the calendar year, it will be the accounting period for the year 2022.

However, the regulated person does not pay the levy if the amount of the levy for the respective levy period does not exceed €1,000.

How do you determine the contribution base?

In general, the levy base is the pre-tax profit shown for that accounting period in which the regulated person is authorized to carry out activities in the regulated area. This base is multiplied by the coefficient determined as the ratio of revenues (income) from regulated activities to total revenues (income).

What is the contribution rate, and how do you calculate it in Slovakia?

Regulated persons engaged in banking use a rate of 0.025 for the calculation of the contribution for 2024. For all other regulated entities, the contribution rate is 0.00363. The regulated contribution is calculated by multiplying the contribution base by the respective contribution rate.

If you are unsure whether you should be considered a regulated entity from January 1, 2024, due to a authorization issued by the NBS, enter your business name or ID number on this page to check if you have such a authorization.

If you believe that your company may be subject to the obligation of a special contribution in regulated areas from 2024 and would like more information, our tax experts are happy to provide advice in this area.

Barbora Juhásová

Tax Manager | Accace Slovakia

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