End of the Financial Transaction Tax? Government Announces Its Abolition from 1 January 2027
On 24 August 2026, Prime Minister Robert Fico announced the government’s intention to abolish the financial transaction tax with effect from 1 January 2027. In this context, the Ministry of Finance of the Slovak Republic has been tasked with preparing the necessary legislative and technical measures.
The abolition of the tax would represent a significant change in the tax burden on businesses, while also reducing the administrative burden associated with its application. Below is a brief overview of the current situation and the potential implications for the business sector.
What Is Being Proposed?
The Ministry of Finance of the Slovak Republic has been instructed to prepare legislative proposals aimed at abolishing the financial transaction tax, which was introduced as part of public finance consolidation measures and has been applicable since 1 April 2025.
At present, the abolition remains a legislative proposal, and its implementation is subject to the completion of the legislative process as well as the identification of measures to compensate for the expected loss of public revenue, estimated to amount to several hundred million euros.
Current Situation and Expected Changes from 2027
As of 1 January 2026, sole traders and self-employed individuals were excluded from the scope of the financial transaction tax. The obligation to pay the tax therefore continues to apply primarily to legal entities covered by the current legislation.
If the proposed legislation is approved and enters into force on 1 January 2027, the financial transaction tax would be abolished in its entirety, eliminating this tax obligation for all entities currently subject to it.
Impact on the Business Sector
From a business perspective, the abolition of the financial transaction tax would represent a positive development, not only through a direct reduction in the overall tax burden but also through a decrease in the administrative effort associated with identifying taxable transactions, calculating tax liabilities, and maintaining the required records.
The removal of the tax could also have a positive impact on companies’ cash flow and overall transaction costs, particularly for businesses with a high volume of cashless financial transactions.
At the same time, it should be noted that until the relevant legislative amendment is formally approved and published in the Collection of Laws of the Slovak Republic, the existing legal framework remains in force. Businesses should therefore continue to comply with the current rules and fulfill all obligations arising under the Financial Transaction Tax Act.
We will continue to monitor developments and keep you informed of any further progress in the legislative process.
