From next year, self-employed individuals and other sole traders will no longer be required to pay the financial transaction tax, as Parliament definitively approved the amendment to the Financial Transaction Tax Act on Tuesday.
The proposal was submitted by a group of MPs from coalition member SNS. All 128 MPs present voted in favour of the amendment. The change is set to take effect as of 1 January 2026.
Under the new rules, only companies and other legal entities will pay the transaction tax. Individual entrepreneurs currently liable for the tax will be exempt. The amendment also introduces technical adjustments, clarifying definitions such as “re-invoiced cost” and “permanent operation,” which have caused uncertainties in practice. It refines the taxpayer definition and introduces a division between taxpayers with limited and unlimited tax liability. The list of entities linked to the public budget excluded from taxpayers is specified, as is the use of payment cards under the law.
Exempting self-employed individuals or sole traders from the obligation to pay the transaction tax as of the beginning of next year is a success for SNS, said SNS leader Andrej Danko, adding that the party will seek the abolition of the transaction tax in its entirety.
Danko noted that the self-employed will continue to pay 15-percent income tax, which is among the lowest in Europe. With an annual income of €40,000, a self-employed individual pays the state around €7,000, he explained, pointing out that employees with a comparable income pay significantly more.
Danko also commented on those self-employed who optimise their income or directly avoid paying social security contributions, noting that they might encounter problems upon retirement, since their contributions do not even cover a minimum pension.
With regard to low-income sole traders with side hustles, Danko wants to hold talks with Minister of Labour, Social Affairs and Family Erik Tomáš (Hlas-SD), as he thinks such income should not qualify for the payment of health insurance or social contributions. Tomáš has already admitted making possible changes for these groups of self-employed individuals.
Source: TASR
