What levies does a sole trader pay in Slovakia?

Total levies on a sole trader

Minimum levies for the sole trader from January 2024:

Monthly social security contributions to the Social Insurance Institution are EUR 216.13.
Monthly down payments to a health insurance company are EUR 91.28.

Immediately after setting up a trade, an entrepreneur needs to pay just down payments for health insurance – EUR 91.28 per month (this does not apply to state insured persons, e.g. students).

Social contributions come after, usually a year later.

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If you want to know what a sole trader has to pay, watch this video (in Slovak language).

Social security contributions

If a freelancer has decided to set up a business in 2024, he or she can sleep well until at least 30 June next year (2025). The monthly payment of EUR 216.13 does not apply at least until then.

A sole trader who started a business in the previous year (2023) and has not yet paid social contributions does not have to continue to pay them until the end of June/September 2024. And if he did not earn more than EUR 7,824 last year, he will not have to pay them until the end of June 2025.

Self-employed persons (including sole traders) who earned more than EUR 7,824 in 2023 must start paying contributions to the Social Insurance Institution in the amount of EUR 216.13 as of 1 July 2024.

How exactly do social contributions work? Watch in this video:

The sole trader does not need to take any steps as the Social Insurance Institution will automatically notify him by 21 July 2024 of the creation, duration or termination of compulsory social insurance and the respective amount of his contribution obligation.

TIP: In a combination of employee and trade, you need to keep the income from the trade below the threshold for paying social security contributions. Health insurance is paid by virtue of employment – this then means that the sole trader pays zero monthly contributions.

The amount of social contributions changes twice a year. In January, the change depends on the increase in the assessment bases set by the state, and in July/October it depends on the tax returns filed by sole traders in March/June.

Health insurance

Monthly down payments on health insurance in the amount of EUR 91.28 are paid by every sole trader (with the exception of sole traders who are also employed or insured by the state – e.g. students, persons on maternity leave or on pension).

Find out all about how health levies work in this video.

Income tax for 2023

The tax return for 2023 must be filed in March 2024 if the taxpayer’s total taxable income for 2023 exceeds EUR 2,461.41.

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There are 3 tax rates for sole traders:
• 15 percent of the tax base, up to a turnover of EUR 49,790 in 2023,
• 19 per cent of the tax base which does not exceed EUR 41,445.46,
• 25 per cent of the tax base that exceeds EUR 41,445.46.

Flat-rate expenditure. For 2023, flat-rate expenditures of 60 per cent of the income of the self-employed person still apply, up to a maximum of EUR 20,000 per year (irrespective of the number of months of business). We will see what the new legislation will bring in 2024.

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