Proposal of a non-taxable item for pension savings contributions

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On 13 January 2023, a draft bill to increase the support for voluntary pension savings was submitted to the National Council of the Slovak Republic.

It is proposed to introduce a tax incentive in the form of a non-taxable part of the tax base in the amount of demonstrably paid voluntary contributions to old-age pension savings, up to a maximum of 2% of the tax base on personal income from employment activities and entrepreneurship. At the same time, this amount must not exceed 2% of 60 times the average monthly wage in the Slovak economy for the calendar year two years preceding the calendar year for which the tax base is determined.

It is also proposed to allow the use of voluntary savings before reaching the retirement age. Adjustment of the tax base will only be necessary if the withdrawal of funds is made before the taxpayer reaches the age of 55 and, at the same time, if the taxpayer has claimed the non-taxable item in previous periods.

The proposed effective date of the amendment is 1 January 2024.

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