Application of Non-Taxable Allowances in ATR - part 1 (11.2.2026)

What’s New in Payroll delivers a clear overview of current legislative changes, employer obligations, and practical payroll updates - straightforward, easy to understand, and without unnecessary theory.

Don’t miss out on practical insights from our experts and follow us on LinkedIn

Application of Non-Taxable Allowances in Annual Tax Reconciliation (ATR)

Non-Taxable Allowance for the Taxpayer

The taxpayer is entitled to apply the non-taxable allowance only against the tax base derived from income from dependent activity, i.e. so-called “active taxable income.”

The amount of the non-taxable allowance depends on the tax base achieved in the relevant tax period. For 2025, the non-taxable allowance amounts to EUR 5,753.79, provided that the taxpayer’s tax base does not exceed EUR 25,426.27. If this threshold is exceeded, the allowance is reduced in accordance with statutory formulas. Where the tax base reaches EUR 48,441.43 or more, the non-taxable allowance is reduced to zero.

The taxpayer cannot opt not to apply the non-taxable allowance, as the entitlement arises directly from the Income Tax Act. Therefore, it is applied automatically in the ATR and does not need to be explicitly indicated in the ATR request.

The entitlement to the non-taxable allowance also applies to tax non-residents (foreign nationals) under the same conditions as to tax residents, regardless of how long they worked in Slovakia or generated income there, and regardless of their country of origin.

Exception – Pension Recipients

An exception applies to a taxpayer who, as at the beginning of the tax period (1 January 2025), was a recipient of:

an old-age pension,
a compensatory allowance,
an early old-age pension paid from social insurance, old-age pension savings, or a comparable foreign mandatory insurance scheme, or
a service pension or a similar pension from abroad.

In principle, the total amount of such pension income (including the 13th pension) usually exceeds the non-taxable allowance for the taxpayer, i.e. EUR 5,753.79.

If the total pension income does not exceed the non-taxable allowance, the tax base is reduced only by the difference between the allowance and the pension income paid.

These facts must be indicated by the pensioner in the ATR request by ticking the relevant boxes:

in Section I, and
in Section II, point 2.

The ATR request must be accompanied by documentation confirming the total annual amount of pension income paid.

The above does NOT apply, for example, to recipients of:

widow’s and orphan’s pensions,
disability pensions or reduced disability pensions, regardless of the recipient’s age,
old-age pensions, early old-age pensions or service pensions granted after 1 January of the relevant tax year.

Are you confident everything is set up correctly?

We’ll walk you through what needs to be adjusted to help you avoid errors.

Schedule a consultation and verify your setup

Non-Taxable Allowance For A Spouse

The non-taxable allowance for a spouse may be applied only if the total income of the spouse in 2025 was lower than EUR 5,260.61 and the spouse does not submit an ATR request in their own name. The following conditions must be met:

the spouse must live with the taxpayer in a shared household, and:
- take care of a dependent minor child living in the household during the relevant tax period (maternity or parental leave),
- receive a caregiving allowance in 2025,
- be registered as a job seeker,
- be considered a person with severe disability.

This must be indicated in the ATR request by:

ticking the box in Section II, point 1,
completing the spouse’s personal details,
completing the spouse’s “own income” (reduced by paid social and health insurance contributions).

The income does not need to be documented by law; its amount is declared in the form of a statement, by entering the exact amount representing the spouse’s income for 2025 in the relevant fields of the ATR request.

For the purpose of applying this non-taxable allowance, supporting documents must be attached.

REQUIRED ATTACHMENTS

In particular:

a copy of the marriage certificate,
confirmation of the spouse’s income,
where applicable, a child’s birth certificate,
medical assessment confirming an adverse health condition,
decision on granting a caregiving allowance,
confirmation from the Labour Office of registration as a job seeker.

The following are deducted from the spouse’s own income:

mandatory social insurance contributions paid by an employee,
mandatory social insurance contributions paid by a self-employed person,
health insurance advance payments paid by an employee or self-employed person,
underpayments resulting from the annual health insurance reconciliation.

Any income is considered the spouse’s own income, even if exempt from income tax, including:

income from dependent activity (employment income),
income from business and other self-employment (reduced only by mandatory contributions),
rental income under Section 6(3), including income exempt up to EUR 500 per year,
income from capital assets (e.g. bank interest, securities yields, supplementary pension benefits, life insurance maturity payments),
other income (e.g. occasional income, winnings, income from the sale of real estate),
wage compensation during temporary incapacity for work paid by the employer,
travel reimbursements (within or above statutory limits), employer meal contributions,
recreation contributions, child sports contributions, non-cash employee benefits exempt from tax,
profit shares for the years 2004–2016,
any benefits paid by the Social Insurance Agency (sickness benefits, maternity, parental and pregnancy benefits, pensions including parental pensions and the 13th pension from 2024 onwards, accident benefits, guarantee fund benefits, unemployment benefits),
material need benefits,
cash benefits compensating severe disability, including caregiving allowances,
social assistance benefits,
childcare allowance (“nursery allowance”),
benefits supporting substitute care for children,
“First Aid” pandemic-related support,
accommodation contributions for refugees,
doctoral scholarships (doctoral studies are not considered continuous preparation for a profession).

The following is NOT considered the spouse’s own income and is therefore excluded:

employee bonus, tax bonus, pension increase due to helplessness, scholarships during continuous preparation for a profession,
university scholarships (social, motivational, pregnancy-related, institution-funded and corporate scholarships),
state social benefits: parental allowance, childbirth allowance, multiple-birth allowance, funeral allowance, child allowance and supplements, 13th and 14th pensions paid by the end of 2023, supplements for political prisoners, sports representative allowance, miners’ compensation allowance, housing loan repayment support.

If you are interested in payroll or accounting advisory services, please do not hesitate to contact us via the attached form. We will be happy to get in touch with you promptly.