Slovakia Expands 2% Income Tax Allocation Mechanism

Slovakia Updates 2% Income Tax Donation Rules for 2026

Slovakia’s long-standing mechanism allowing taxpayers to allocate 2% of their paid income tax to public-benefit purposes is undergoing a significant change starting in 2026. While the core structure remains intact, the range of eligible recipients is expanding to include retired parents.

The system enables individuals and legal entities to redirect a portion of their already calculated tax liability to approved recipients. The Slovak Tax Authority transfers the selected share directly to the chosen entity, while the remaining amount forms part of the state budget. Importantly, this allocation does not increase the taxpayer’s overall liability and does not constitute an additional payment.

New Option: Allocating 2% to Retired Parents

Beginning with the 2025 tax year, meaning donations made in 2026, individuals may allocate 2% of their income tax to each parent receiving an old-age pension in Slovakia. This reform complements the existing system of donating 2% or 3% to non-profit organizations.

In practical terms, taxpayers may distribute up to 6% or 7% of their tax liability. They can allocate 2% to their mother, 2% to their father, and 2% to a non-profit organization, or 3% if they completed at least 40 hours of volunteer work during the year. The measure combines family support with continued civic engagement.

Volunteering and the 3% Allocation

Taxpayers who document at least 40 hours of volunteer activity during the relevant year may continue to allocate 3% of their paid income tax to non-profit organizations instead of the standard 2%. This provision remains unchanged and aims to strengthen civil society by rewarding active participation.

Filing Procedures and Compliance Requirements

The procedure differs depending on whether the employer conducts annual tax reconciliation or the individual files a personal income tax return.

Employees whose employer performs the annual reconciliation must submit a signed declaration on the allocation of a share of paid income tax to the tax office by April 30, 2026. The declaration must include a confirmation of paid income tax issued by the employer.

Individuals filing their own 2025 tax return may allocate the tax share directly within the return form, with the deadline set for March 31, 2026. To qualify, the tax return must be submitted on time and the tax must be paid by the statutory deadline. The tax authority will transfer the allocated share only if the taxpayer has no outstanding tax arrears exceeding €5 as of mid-April 2026.

Corporate Allocation and Eligible Recipients

Companies may continue to allocate 1% of their paid income tax, or 2% if they provided a financial donation of at least 0.5% of their tax liability for public-benefit purposes during the year. Corporate donors may divide their allocated share among multiple recipients.

Individuals, however, must assign their full share to a single recipient. Eligible entities must be registered in the Notarial Central Register of Recipients. These include civic associations, foundations, non-profit organizations providing public-benefit services, non-investment funds, and church or religious institutions.

Broader Social and Fiscal Implications

The legislative update reflects Slovakia’s attempt to balance support for civil society with enhanced intergenerational solidarity. The volume of funds allocated through the 2% mechanism has grown steadily over recent years, reinforcing its role as a meaningful component of the country’s fiscal framework.

As International Investment experts note, Slovakia’s reform modernizes an established tax allocation instrument by integrating family-based redistribution while preserving incentives for volunteerism and public-benefit support, thereby strengthening both social cohesion and civic financing mechanisms.