The January Adviterra Club opened a topic that concerns almost every entrepreneur today: where is the tax and contribution burden heading, what will change from 2026, and what needs to be prepared for today.

In three blocks, we looked at the macroeconomic context, changes for individuals and legal entities, and practical implications in the area of VAT.

Why taxes will continue to change

The introductory block provided a broader view of the state of public finances. Tax revenues currently constitute a key part of the state budget, but despite their growth, the public finance deficit has not been reduced in the long term. State expenditures are growing faster than revenues, GDP is stagnating, and inflation is among the highest in the eurozone.

At the same time, it appears that Slovakia has already passed the so-called Laffer curve – further tax increases would most likely not bring higher revenues, but rather dampen economic activity. This is also why it is clear that consolidation measures will be shifted towards contributions, redistribution, and stricter rules rather than across-the-board tax increases.

Changes for individuals: greatest pressure on small business owners

One of the most significant areas of change concerns natural persons, particularly sole traders.

Change in the definition of dependent work

From January 1, 2026, the definition of dependent work will change. The condition of fixed working hours will be removed from the law, which means that even people working from home or with flexible hours may fall under the characteristics of an employment relationship. Inspections by the Labor Inspectorate may thus focus on a wider range of "bogus self-employment."

Higher taxes on higher incomes

For individuals, the basic tax rate remains at 15%, but progressive taxation is being extended to incomes above €100,000. From 2026, new rates of 30% and 35% will be added, increasing the overall tax burden on higher incomes.

Growth in deductions

There is also a significant change in deductions:

• employee health insurance contributions increase from 4% to 5%,
• The minimum assessment base for social security contributions is increased from 50% to 60% of the average wage.

In practice, this means a significant increase in contributions, especially for self-employed people with low and medium incomes, who have so far been paying around the minimum amount.

End of favorable tax holidays

From 2026, the contribution holiday will be reduced from 12 to 6 months and the income threshold below which self-employed persons did not have to pay social security contributions will be abolished. Under the new rules, contributions will also be payable on zero income, which fundamentally changes the attractiveness of self-employment for start-up entrepreneurs.

Sole proprietorship vs. limited liability company: time to reevaluate your business form

Comparisons between 2025 and 2026 clearly show that small business owners are the most affected group. Lower incomes result in a real decline in net income, while higher incomes hit the ceiling for flat-rate expenses.

For incomes above approximately €33,000 per year, flat-rate expenses no longer increase, but contributions do. In such cases, a limited liability company is often more advantageous in terms of taxes and contributions, especially at a tax rate of 10% on turnover up to €100,000.

However, there is no universal solution; each case requires individual calculation based on the type of income, expenses, and plans for the future.

Legal entities and minimum tax: what to watch out for

The minimum tax (tax license) returned in 2024, and another threshold was added in 2026 for large companies with revenues exceeding €5 million.

It is important to realize that:

• The minimum tax is based on taxable income, not on all accounting income.
• Dividends or gifts that are not subject to tax do not affect its amount.

Incorrect accrual of revenues also remains a major risk. Taxation in the wrong period can lead to additional assessments and penalties during a tax audit.

VAT and passenger cars: end of automatic 100% deduction

A significant change is the restriction on VAT deductions for passenger cars. A transition period will apply from January 1, 2026, until June 2028.

The following entities are entitled to a full VAT deduction:

• taxi services,
• short-term rentals (up to 30 days),
• driving schools,
• entrepreneurs who keep an electronic logbook and fulfill their reporting obligations.

The electronic logbook must be kept in an electronically processable form and contain detailed information about each trip. Applying a 100% deduction when purchasing a vehicle poses the highest risk of a tax audit, so it is important to have your documentation in order.

Conclusion: planning is a necessity today

The January Adviterra Club showed that business in 2026 will be even more about well-thought-out decisions, planning, and choosing the right form of business. Taxes and contributions will evolve, but the right settings today can significantly influence future costs and risks.

Once again, it has been confirmed that professionalism, discipline, and a long-term perspective are key not only to the growth of companies, but also to their stability in a changing environment.

The complete video recording from the Adviterra Club is available in the Events section of our website.