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Application of Non-Taxable Allowances in ATR - part 2 (15.2.2026)
Application of Non-Taxable Allowances in ATR - part 2 (15.2.2026)
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Application of Non-Taxable Allowances in Annual Tax Reconciliation - ATR (Part 2)
Non-Taxable Amount for Supplementary Pension Contributions (Third Pillar – DDS) and the Pan-European Personal Pension Product (PEPP)
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Schedule a consultation and verify your setupSince 2014, a taxpayer may reduce their tax base by contributions demonstrably paid by the taxpayer to supplementary pension savings (DDS, the so-called “third pillar”), or to a comparable supplementary pension scheme abroad of the same or similar nature.
However, the entitlement applies only if:
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the participation agreement was concluded after December 31st 2013, or
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the participation agreement concluded before that date was amended to comply with the conditions effective from 1 January 2014 (i.e., cancellation of the benefit plan).
As of January 1st 2023, taxpayers may also reduce their tax base by contributions demonstrably paid to a Pan-European Personal Pension Product (PEPP), pursuant to a PEPP contract, or to a comparable product abroad of the same or similar nature.
This non-taxable amount may be claimed through the annual tax settlement or in the tax return, up to a maximum aggregate amount of EUR 180. Employer contributions are not taken into account for this purpose.
Employee contributions for December 2025 that were withheld from salary by the employer and transferred to the supplementary pension company in January 2026 are considered contributions for 2025. In such cases, the employee is not required to document the amount of contributions for the annual tax settlement.
If the employee paid contributions separately outside payroll, only those demonstrably paid to the supplementary pension company by December 31st of the relevant year may be claimed. For this purpose, confirmation issued by the respective pension company must be provided.
If the above conditions are met by a taxpayer with unlimited tax liability (i.e., a Slovak tax resident), the non-taxable amount may be applied. The same applies to a non-resident, provided that at least 90% of their total taxable income in the relevant year was derived from sources within the Slovak Republic.
It is also necessary to consider that a taxpayer may terminate the supplementary pension agreement early and withdraw the accumulated funds. If the taxpayer previously claimed this non-taxable amount, they are required to file a tax return within three years following the end of the year in which the funds were paid out and increase their tax base retrospectively by the amount of contributions previously claimed.
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