<h2>Introduction: Taxes and Reporting for LLC (s.r.o.) in Slovakia</h2>
LLC (Slovak: s.r.o.)&nbsp;is the most popular form of legal entity in Slovakia for small and medium-sized businesses. It offers a flexible ownership structure and the opportunity to work with clients across Europe.
The tax system for LLCs remains one of the most favorable in the EU, especially for companies with moderate turnover. For LLCs in Slovakia, there is a progressive corporate income tax rate.
This article discusses the taxes and obligations awaiting the owner and director of an LLC in Slovakia: from corporate income tax and VAT to reporting requirements. All with examples, calculations, and comments from Oki-Doki.sk.

<h2>Corporate Income Tax for LLCs in Slovakia: Rate and Calculation</h2>
LLCs in Slovakia pay corporate income tax at a progressive rate that depends on annual revenue (turnover), not on actual profit.
Corporate income tax rates for 2025:
<ul style="margin-top: 7px;">
<li>10%&nbsp;— if the revenue for the year does not exceed <samp>100,000 €</samp></li>
<li>21%&nbsp;— if the revenue is between <samp>100,000 €</samp> and <samp>5,000,000 €</samp></li>
<li>24%&nbsp;— if the revenue exceeds <samp>5,000,000 €</samp></li>
</ul>
<div class="blog-services">⚠️&nbsp;This applies to revenues (Slovak: výnosy), not net profit. Even if the company operates at a loss, but its revenue exceeds the threshold, the higher rate applies.</div>
<h3>What is Considered Profit?</h3>
Company profit = <samp>revenue – recognized expenses</samp>
When calculating the tax, all business expenses backed by documents can be considered: rent, services, purchases, salaries, depreciation, etc.
Examples:
<ul style="margin-top: 7px;">
<li>Company with revenue <samp>90,000 €</samp> and profit <samp>30,000 €</samp> → tax rate: 10% of profit = <samp>3,000 €</samp></li>
<li>Company with revenue <samp>120,000 €</samp> and profit <samp>30,000 €</samp> → tax rate: 21% of profit = <samp>6,300 €</samp></li>
</ul>

<h2>Advance Payments for Corporate Income Tax (preddavky na daň)</h2>
If the company paid more than <samp>5,000 €</samp> in corporate income tax, it is required to make advance payments the following year:
<ul style="margin-top: 7px;">
<li>From <samp>5,000 €</samp> to <samp>16,600 €</samp> in tax — payments are made quarterly</li>
<li>More than <samp>16,600 €</samp>&nbsp;— the company must pay tax monthly</li>
</ul>
The amounts of advance payments are calculated by the tax office based on the last filed declaration and are automatically displayed in the taxpayer's electronic account and on the portal <a href="https://www.financnasprava.sk" target="_blank">financnasprava.sk.</a>
⚠️&nbsp;Advance payments are credited toward the annual corporate income tax. If the final tax amount is less than the advance payments, the tax office returns the difference.

<h2>Health Insurance for LLC Directors: Obligations and Rates</h2>
Unlike individual entrepreneurs, foreign directors of LLCs do not pay social security contributions.
However, a foreign director of an LLC with residence in Slovakia must have valid health insurance:
<ul style="margin-top: 7px;">
<li>If they do not have an individual entrepreneur (Sole Proprietorship), they must have commercial insurance (Slovak: komerčné zdravotné poistenie).</li>
<li>If they have a Sole Proprietorship or employment contract, they may be insured under the public health insurance system (Union, Dôvera, VšZP).</li>
</ul>

<h2>Transaction Tax (transakčná daň) for Legal Entities</h2>
Transaction tax (Slovak: transakčná daň)&nbsp;is a tax that all individual entrepreneurs (Sole Proprietorships) and companies (LLCs) in Slovakia pay on every outgoing financial transaction.
The tax is not levied on payments made by bank card!
<div class="blog-services">🟩&nbsp;Disclaimer: As of April 2025, Slovak authorities are considering abolishing the transaction tax. If this decision is made, doing business in the country will become even easier.</div>
<h3>Transaction Tax Rates:</h3>
<ul>
<li>0.4% on the amount of each outgoing transaction (maximum <samp>40 €</samp> per transaction)</li>
<li>0.8% on cash withdrawals from an ATM</li>
</ul>
<h3>How to Pay the Transaction Tax?</h3>
Option 1: Account with a Slovak bank. If the Sole Proprietorship or company has a bank account in Slovakia, the tax is automatically deducted by the bank. No reports need to be submitted, everything happens without the entrepreneur's involvement. 
Downside: Slovak banks are inconvenient for foreigners — opening an account is complicated, requires a personal visit, and it is not possible to open an account online.
If the entrepreneur opens a bank account in Slovakia, a special business account is required.
Option 2: Account with a foreign bank (e.g., Revolut). If a foreign bank is used, the tax must be paid manually:
<ul style="margin-top: 7px;">
<li>Export all outgoing transactions once a month,</li>
<li>Calculate the tax amount,</li>
<li>Submit the report and pay the tax manually.</li>
</ul>

<h2>VAT (Slovak: DPH) in Slovakia: Registration, Reporting, Rate</h2>
LLCs in Slovakia can operate without VAT registration as long as their turnover does not exceed the legally set threshold. However, in some cases, registration is mandatory even for low-income companies.
<h3>Mandatory Registration Under the Basic Scheme (according to §4 of the VAT Act)</h3>
An LLC must register as a VAT payer if its total turnover (all income received from business activity) exceeds <samp>50,000 €</samp> in a calendar year. Only income generated in Slovakia counts. Registration is mandatory not from the moment the threshold is exceeded, but from the beginning of the next month.
What is considered the "place of service provision"? According to the VAT Act, the place of provision of services depends on: the country of registration of the provider (Sole Proprietorship); the status and country of the customer.
Examples:
<ul style="margin-top: 7px;">
<li>If the customer is a private person (not an entrepreneur), the place of service provision is considered to be the country of registration of the provider (Slovakia). This income counts toward the <samp>50,000 €</samp> threshold.</li>
<li>If the customer is a private entrepreneur or a legal entity from the EU, the place of service provision is considered to be the country of the customer, and this income does not count toward the threshold for registration in Slovakia.</li>
Specific examples:
<ul style="margin-top: 7px;">
<li>A Slovak LLC provides a service to a private person from Estonia — place of service provision — Slovakia → this income counts toward the threshold.</li>
<li>If the same LLC provides a service to a legal entity from Estonia — place of service provision — Estonia → income does not count toward the <samp>50,000 €</samp> threshold.</li>
</ul>
<h3>Mandatory Registration Under Other Sections (§7 / §7a)</h3>
Even with a turnover below <samp>50,000 €</samp>, an LLC must register under other sections of the Act if:
<ul style="margin-top: 7px;">
<li>Under §7&nbsp;— you purchase or receive services from suppliers in other EU countries (e.g., advertising on Google or Meta).</li>
<li>Under §7a&nbsp;— you provide services to companies and entrepreneurs from other EU countries (B2B), and your client requests a VAT number for invoicing.</li>
</ul>
You must register under §7 / §7a before providing/purchasing goods or services!
If you are registered under §7 or §7a, you must submit quarterly reports on transactions with EU partners (Slovak: súhrnný výkaz / summary report).
Reports are only submitted for the quarters in which purchases or sales with EU partners actually occurred.

<h2>Reporting for LLCs in Slovakia: Tax Declarations and Deadlines</h2>
Every LLC in Slovakia is required to maintain double-entry accounting (Slovak: podvojné účtovníctvo)&nbsp;— regardless of income size or number of employees, even if the company does not engage in active activity.
<h3>📘&nbsp;What is included in mandatory accounting reports:</h3>
<ul>
<li>Maintaining accounting books (Slovak: účtovná kniha): Recording all income, expenses, liabilities, and assets</li>
<li>Annual tax declaration (Slovak: daňové priznanie k dani z príjmu PO): Required for all companies</li>
<li>Annual financial statement (Slovak: účtovná závierka): Includes the balance sheet and income statement. It is published in the financial register (registeruz.sk)</li>
<li>Quarterly VAT reports&nbsp;— for registration under §7 and §7a (when purchasing/selling services with EU counterparts)</li>
<li>Monthly VAT reports&nbsp;— for registration under §4 (regular VAT registration)</li>
</ul>
<h3>📌&nbsp;Additional Accounting and Tax Obligations</h3>
<ul>
<li>Registration in the e-Kasa system: If the company conducts retail sales using cash registers, it must register in the e-Kasa system and use online cash devices connected to the tax office.</li>
<li>Intrastat Reporting: If the annual volume of trade in goods with other EU countries exceeds the set thresholds, the company must submit statistical reports to the Intrastat system.</li>
<li>Reports to the Statistical Office of Slovakia: Some companies must submit regular statistical reports to the Štatistický úrad SR depending on the type of activity and company size.</li>
</ul>
These obligations may vary depending on the nature of the company's activity, size, and other factors. It is recommended to consult with an accountant or legal advisor to ensure full compliance with all applicable requirements.
<h3>🛂&nbsp;Electronic Submission and Access to Systems</h3>
To submit reports electronically, you will need:
<ul style="margin-top: 7px;">
<li>eID&nbsp;— passport or residence permit with an activated electronic identification function.</li>
<li>Electronic signature (Slovak: KEP)&nbsp;— required for access to the Unified Portal of Electronic Services <a href="https://www.slovensko.sk" target="_blank">(slovensko.sk)</a> and the Tax Portal <a href="https://www.financnasprava.sk" target="_blank">(financnasprava.sk).</a></li>
</ul>
Without this, it is impossible to submit reports, sign declarations, or manage the legal entity's electronic mailbox.
For a foreign entrepreneur with a company in Slovakia, the accounting and tax system can seem complex: reports, deadlines, terminology, interaction with multiple portals, and the need for an electronic signature.
👉&nbsp;The only correct solution&nbsp;— focus on doing business, not accounting. For the financial and tax aspects, it is advisable to trust a professional accounting company.
<div class="blog-services">Oki-Doki.sk offers accounting services for LLCs&nbsp;— from <samp>70 € per month,</samp> including filing reports, VAT calculations, annual balance, and support in dealings with tax authorities and other agencies.</div>

<h2>Withdrawing Funds from an LLC: Salary or Dividends?</h2>
The owner and director of an LLC in Slovakia have two main legal ways to withdraw money from the company: salary or dividends. However, for foreigners with a residence permit for business purposes (Slovak: podnikanie), these options are limited.
<h3>💼&nbsp;1. Director's Salary</h3>
Formally, the director of an LLC can receive an official salary, from which taxes and social and health insurance contributions are paid (around 40-45%). 
If a foreigner has a residence permit issued for business purposes, they do not have the right to be employed. Therefore, a foreign director with a residence permit cannot officially pay themselves a salary.
<h3>💰&nbsp;2. Withdrawing Funds via Dividends</h3>
An alternative and legal way to receive profits&nbsp;— dividends. The owner of the company can distribute net profit as dividends:
<ul style="margin-top: 7px;">
<li>Payments are possible once a year&nbsp;— after approval of the annual financial statement (Slovak: účtovná závierka)</li>
<li>Dividends are subject to a 7% tax</li>
<li>No social and health insurance contributions are charged</li>
<li>Dividends can only be paid from officially earned profits</li>
</ul>

<h2>Solutions from Oki-Doki.sk: Help with Taxes and Accounting for s.r.o.</h2>
We support LLC owners at all stages&nbsp;— from registration to filing the annual report:
<div class="blog-services">
<h3>✅&nbsp;Accounting for LLCs&nbsp;— <samp>from 70 €</samp> per month</h3>
Full package: double-entry accounting, VAT, salaries, reports, year-end closing. 
<a href="/en/sluzby/uctovnicke-sluzby" target="_blank">👉&nbsp;More about accounting services for LLCs</a>
</div>

LLC taxes in Slovakia in 2025: corporate income tax, VAT, director’s salary, dividends, accounting costs, and reporting.

Corporate Taxes in Slovakia in 2025: Accounting for Limited Liability Companies