Parliament approved Amendment to the Top-Up Tax Act

On October 21, 2025, the National Council of the Slovak Republic approved the amendment to Act No. 507/2023 Coll. on the Top-Up Tax to ensure a minimum level of taxation for multinational enterprise groups and large domestic groups, and amending Act No. 563/2009 Coll. on Tax Administration (the Tax Code) and on amendments to certain acts. The amendment implements the European DAC 9 Directive, which regulates administrative cooperation and the exchange of information between EU Member States, and ensures compliance with global OECD rules and OECD/G20 administrative guidelines.

The amendment to the Top-Up Tax Act brings several important changes for companies that are part of large multinational groups. The main aim of these changes is to implement the DAC9 Directive, as well as administrative guidance on global model rules against base erosion, which the OECD/G20 Inclusive Framework published during 2024 and 2025.

How Certain Top-Up Tax Rules Are Supplemented and Clarified

1. New definition of the reference entity

The law now precisely defines who is the so-called reference entity – the main entity in the ownership structure that is the first owner above the tested entity and which:

• is not a tax-transparent entity, or
• is a tax-transparent entity if it is also the ultimate parent entity and the entity mentioned in the first point does not exist.

This change is intended to provide clearer determination of who is responsible for fulfilling certain obligations arising from the Top-Up Tax Act.

2. New rules for Tax Credits

The acquirer of a tax credit who uses a tradable transferable tax credit must include in the calculation of eligible income or loss the difference between the nominal value and the purchase price of the credit in proportion to the part used. When selling the credit, the profit or loss from the sale, calculated as the difference between the sale price and the value of the used part of the credit, is included in income or loss. If the credit expires unused, the unclaimed value is recognized as a loss in the relevant accounting period.

3. Adjustment of monitoring deferred tax liabilities

The method by which companies monitor so-called deferred tax liabilities (taxes that will have to be paid in the future) and the procedure for re-including deferred tax liabilities is adjusted. Liabilities can be monitored in three ways:

• individually,
• by a separate category relating to a single balance sheet account, or
• aggregated for multiple accounts.

However, aggregated monitoring is not possible for accounts where only deferred tax assets are recorded. If the main entity can demonstrate that all liabilities will be settled within five accounting periods, it does not have to follow the standard procedure.

4. Automatic exchange of information between states

The amendment introduces an obligation to automatically exchange information on the top-up tax within a specified scope between states and to cooperate in correcting notifications and enforcing rules related to notifications of information for determining the top-up tax. Slovak authorities will send this information abroad electronically. This means that tax authorities in different countries will cooperate more closely, and companies will be under greater scrutiny.

Most of the changes will take effect from December 31, 2025, with some parts of the law coming into force on January 1, 2026 or 2028.

The Top-Up Tax Act is intended to ensure that large corporate groups pay a fair minimum tax and cannot avoid taxation, for example through various “tax havens.” At the same time, the administrative burden for qualifying companies has increased, but the changes will contribute to greater transparency in taxation.