Changes in taxes: Here are seven more important changes

Travel allowances, compulsory insurance, and minimum contributions. These tax requirements for employees are also changing this year.

1. Travel allowances

The Ministry of Finance is authorized to determine the amounts of meal allowances for foreign business trips in a decree, and these amounts may be adjusted according to economic sectors and employee classification. For foreign business trips, it is possible to agree with an employee whose frequent change of workplace results from the specific nature of their profession, in an employment contract or agreement, to reduce the meal allowance by a maximum of 25%. Until 2026, the reduction could be a maximum of 5%.

2. Automatic commencement of compulsory insurance

Until now, self-employed persons were required to pay contributions from July 1 or October 1 after filing their tax returns for the previous year, but under the new rules, the obligation arises automatically from the first day of the sixth month following the month in which the self-employed person obtained a business license. Similarly, insurance coverage will automatically terminate upon revocation of the business license or upon submission of a sworn statement of termination of business activities. It is expected that many sole traders who have kept their businesses open but have not been actively trading will close their businesses in order to avoid these obligations. At the same time, however, it is expected that many sole traders will reconsider whether to continue trading on the basis of a trade license or to switch to a limited liability company.

3. Increased minimum contributions

The minimum assessment base for self-employed persons is increased from 50% to 60% of the average monthly wage from two years ago. For 2026, this means that the minimum contribution to the Social Insurance Agency for a self-employed person is €303.11, and the minimum health insurance contribution increases to €121.92. For other sole traders, the minimum assessment base for social insurance has increased to €914.40. The health insurance contribution rate has also increased from 15% to 16%, but for people with disabilities it remains at eight percent.

4. New definition of dependent work

The state has been trying to uncover fictitious self-employed persons for some time. Until now, dependent work has been defined by five characteristics, namely that the work is performed in a relationship of superiority of the employer and subordination of the employee, personally by the employee for the employer, according to the employer's instructions, on behalf of the employer, and during working hours determined by the employer. If the contractual relationship between the company and the self-employed person met all the characteristics, it was considered dependent work, and both the company and the self-employed person could face sanctions. The amendment to the Labor Code removes the condition of working hours determined by the employer from this definition as of January 1, 2026. This means that the work of self-employed persons meeting the remaining four conditions will be considered dependent activity. The state is largely responsible for the emergence of the phenomenon of fictitious self-employed persons due to its lenient approach to flat-rate expenses and the high tax and social security burden on work in companies. There are excessive differences in the tax and social security burden between employees and self-employed persons. These should be reduced sensitively so that a certain gap in the tax and contribution burden is maintained, as self-employed persons bear business risk and enjoy significantly lower labor law protection than employees. However, repression without reasonable adjustments to the conditions for self-employed persons is not a good step.

5. Depreciation of real estate

The amendment to the Income Tax Act introduces the possibility of reducing the depreciation period for buildings classified in depreciation group 6 to 40 years to 20 years, which is half the original period. This applies to buildings intended for accommodation, sports, and sports facilities. However, a simpler law without any selective exceptions and exemptions would be better. A simpler law without various established exceptions aimed at supporting entrepreneurship itself can contribute to easier implementation, a reduction in the gray economy, and an increase in state budget revenues by improving the economic condition of entrepreneurs.

6. Cash payments

From March 2026, limits on cash payments will be tightened. A natural person who is not an entrepreneur may not pay more than five thousand euros in cash, and entrepreneurs may pay each other up to 15 thousand euros. If an entrepreneur pays a citizen, the limit is reduced to five thousand euros. From July 10, 2027, the limit will be further reduced to €10,000 as part of the transposition of the European directive. The transition to cashless payments clearly contributes to reducing the gray economy. However, the introduction of the transaction tax has had the opposite effect.

7. Tax amnesty

The government has adopted a regulation effective from October 1, 2025, introducing a tax amnesty. The tax amnesty applies to tax arrears recorded by the tax administrator as of September 30, 2025, and will be paid between January 1 and June 30, 2026. The tax administrator will not impose a penalty or interest on late payment. If a penalty or interest has already been imposed and has not been collected by September 30, 2025, the arrears shall expire.

 Note: This article was originally published in the daily newspaper Hospodárske noviny.