Non-profits sit outside the business world in both Slovakia and the Czech Republic, yet the legal and tax frameworks differ in important ways. Slovakia works with civic associations and non-profit organisations and funds the sector largely through its “2% tax assignation”. The Czech Republic rebuilt its law in 2014 around the spolek (association) under the Civil Code and has no tax assignation at all, relying instead on deductions for donations.
What legal forms do non-profits take in each country?
In Slovakia, the simplest form is the civic association under Act No. 83/1990 Coll., registered with the Ministry of the Interior, alongside the non-profit organisation providing generally beneficial services under Act No. 213/1997 Coll., registered with the district authority at the regional seat.
In the Czech Republic, the backbone is the spolek (association) under the Civil Code (Act No. 89/2012 Coll.), which replaced the old civic associations in 2014, together with foundations, endowment funds and the institute (ústav). The older “public benefit company” can no longer be newly established. For the wider picture of running an entity here, see our overview of professional accounting in Slovakia.
How do non-profits keep their books?
Sound non-profit accounting starts from the same discipline in both countries: keeping the main, non-taxed mission strictly separate from any economic, taxed activity. Both systems default to double-entry bookkeeping under their accounting acts and dedicated rules for non-profit entities.
Smaller organisations may use single-entry bookkeeping if they meet statutory conditions — in Slovakia a civic association that does not run a business and had income below 200,000 euros in the prior period, in the Czech Republic typically a non-VAT-registered association with income below 3 million korunas. If you are unsure which regime fits, our Slovak tax advisory overview explains how we approach it.
When do non-profits pay income tax?
Neither country taxes income from the core, non-business mission as a rule. In Slovakia, associations and non-profits are “taxpayers not established for business” and pay tax mainly on business income, rental, the sale of assets and advertising.
In the Czech Republic, the spolek and the institute are “public-benefit taxpayers” taxed mainly on secondary economic activity. They can also reduce the tax base by 30%, up to 1,000,000 korunas (and where 30% is less than 300,000 korunas, up to 300,000 korunas), provided the saving is used for the main activity.
How does each state support the sector?
This is where the two diverge most. Slovakia lets individuals assign 2% of their paid tax to a registered non-profit — 3% for those who volunteered at least 40 hours — and from 2026 individuals can additionally assign 2% to each pensioner parent, up to 6% in total.
The Czech Republic has no such assignation. Instead, both individuals and companies can deduct the value of donations to non-profits from their tax base, within statutory limits. The practical effect is similar — channelling private money into the sector — but the mechanism is entirely different.
Other duties: VAT, payroll and disclosure
In both countries a non-profit that carries on economic activity above the VAT threshold must register for VAT like any business, must handle payroll and contributions if it employs people, and must file its financial statements in the relevant public register.
Grant funding adds its own layer: providers usually require separate tracking and reporting of how the money was spent, so disciplined bookkeeping is a condition of keeping the support, not an optional extra.
Key differences at a glance
Slovak non-profits revolve around civic associations and the 2% assignation; Czech non-profits revolve around the spolek and donation deductions. The forms, the funding tools and the exact thresholds do not match.
If your organisation operates on both sides of the border, treat the two regimes separately and follow local law in each — which is why this article has distinct Slovak and Czech versions rather than one translated text.
Setting up a non-profit or dealing with its accounting and tax in Slovakia or the Czech Republic? We will set up the bookkeeping and the tax return so you can focus on your mission.
FAQ
What is the main non-profit form in Slovakia and the Czech Republic?
In Slovakia it is the civic association under Act No. 83/1990 Coll., alongside the non-profit organisation providing generally beneficial services. In the Czech Republic it is the spolek (association) under the Civil Code, which replaced the old civic associations in 2014. Both countries also recognise foundations and similar forms.
Do non-profits pay income tax?
As a rule, income from the core non-business mission is not taxed in either country. Tax applies mainly to secondary economic activity, rental, the sale of assets and advertising. Czech public-benefit taxpayers can also reduce the tax base by 30% within set limits if the saving funds the main activity.
Does the Czech Republic have anything like the Slovak 2% tax assignation?
No. The Czech Republic has no tax assignation. It supports the sector through deductions instead: both individuals and companies can deduct the value of donations to non-profits from their tax base within statutory limits. Slovakia, by contrast, lets taxpayers assign 2% (or 3%) of their paid tax directly to a registered organisation.