The minimum tax, often called the tax licence, is the lowest corporate income tax a Slovak s.r.o. pays even when it ends the year at a loss or with zero profit. In 2026 it ranges from 340 to 11,520 euros depending on taxable revenue and, for the first time, includes a new fifth band for the largest companies. You pay it whenever your calculated tax falls below the relevant minimum — with a few important exceptions.
What is the minimum tax and why do loss-making firms pay it?
The minimum tax is the lowest corporate income tax a legal entity must remit regardless of its result. It returned to the Slovak system for the tax period beginning 1 January 2024, after being abolished between 2018 and 2023. The idea is straightforward: the state wants to collect at least a certain minimum from every active company, even if it reports no profit.
That is why the minimum tax also affects companies that ended the year at a loss or whose tax came out lower than the set minimum. If your s.r.o. calculates a tax of, say, 150 euros but falls into a band with a minimum of 340 euros, you top up the difference. This complements the other obligations we describe for a single-member s.r.o. in Slovakia and Czechia.
How much is the minimum tax in 2026?
The amount depends on taxable revenue for the tax period, not on the profit achieved. Turnover decides, not the bottom line. For 2026 the bands are:
- taxable revenue up to 50,000 euros — 340 euros,
- over 50,000 up to 250,000 euros — 960 euros,
- over 250,000 up to 500,000 euros — 1,920 euros,
- over 500,000 up to 5,000,000 euros — 3,840 euros,
- over 5,000,000 euros — 11,520 euros.
Two firms with identical profit can therefore pay a different minimum tax simply because their turnover differs. For a typical small s.r.o. with revenue up to 50,000 euros, the ceiling is 340 euros a year.
What does the new fifth band from 2026 bring?
Until the end of 2025 the minimum tax had four bands, capped at 3,840 euros. From 2026 a fifth band applies to companies with taxable revenue above 5 million euros, which pay 11,520 euros. This is the most significant change the consolidation measures brought to the area.
Timing matters: the new band first appears in the tax return for 2026, filed in 2027. Small and medium-sized businesses are not directly affected, but large companies should factor the impact into their cash-flow planning.
When and how do you pay the minimum tax?
The minimum tax is due within the deadline for filing the tax return, normally by 31 March of the following year, or within an extended deadline. You pay it whenever the tax calculated in the return is lower than the minimum for the band, or when the company reports a tax loss.
If the tax period is shorter than 12 consecutive calendar months, the minimum tax is reduced proportionally by the number of months. This arises, for example, for a company incorporated during the year or changing its tax period.
Who does not have to pay the minimum tax?
The law recognises several situations in which a company does not pay the minimum tax. The most common are:
- a newly formed taxpayer for the first tax period in which it came into existence (this does not apply to a legal successor in a dissolution without liquidation),
- a taxpayer for the tax periods during liquidation or bankruptcy,
- taxpayers not established for business purposes (such as certain non-profit entities) under statutory conditions.
A special rule applies to firms employing people with disabilities: if their average registered headcount is at least 20 % of the total, the minimum tax is halved. For completeness, note that the Czech Republic has no comparable general minimum corporate income tax — this is a Slovak specificity. We also cover related winding-down rules in our guide to bankruptcy and restructuring in Slovakia and the Czech Republic.
How does carrying the minimum tax forward work?
The minimum tax is not a permanently lost amount. The positive difference between the minimum tax paid and the tax the company actually owed can be credited against the tax liability in the three immediately following tax periods. The credit is possible only in years where the tax exceeds the minimum tax.
Example: a company pays a minimum tax of 340 euros for 2026 even though its tax came out at only 100 euros. It can use the 240-euro difference in 2027 to 2029 if its tax exceeds the relevant minimum in one of those years. If it fails to do so within three years, the right to the credit lapses. Director-level responsibility for the company’s taxes is discussed further in our article on a director’s liability for company debts and taxes.
What does the minimum tax mean for dormant and loss-making firms?
The minimum tax hits so-called dormant s.r.o. companies hardest — firms that carry on no activity yet still exist in the commercial register. Such a company pays at least 340 euros every year unless it is in liquidation or bankruptcy and it is not its first year of existence.
So if you keep an inactive company “just in case”, it is worth calculating whether maintaining it is worth the recurring cost of the minimum tax and accounting. For loss-making but operating firms, the minimum tax is a reminder that even a weak year carries a fixed tax cost that belongs in the budget.
Not sure whether the minimum tax applies to your company or how to use the carry-forward? Let us review your situation and suggest the most advantageous approach.
FAQ
Does a company with no income pay the minimum tax?
Yes. Even a dormant s.r.o. with no income at all pays a minimum tax of at least 340 euros, unless it is its first tax period or the company is in liquidation or bankruptcy. The minimum tax is tied to the existence of an active company, not to profit earned. That is why dissolution is worth considering for long-term inactive firms.
Can the minimum tax paid be recovered?
It is not refunded directly, but it is not entirely lost either. The positive difference between the minimum tax and the tax the company actually owed can be credited against its tax liability in the three immediately following tax periods, provided the tax in that year exceeds the minimum. If you do not use the right within three years, it lapses.
Does the minimum tax also apply to sole traders?
No. The minimum tax applies to legal entities, mainly limited liability companies. Sole traders and other individuals do not pay it — they are subject to different rules for taxing business income, including the option of flat-rate or actual expenses. It is one of the factors to weigh when deciding between a trade licence and an s.r.o.