Did you know that the taxation of software income for non‑residents changes as of 1 January 2026?

The new guidance issued by the Ministry of Finance of the Slovak Republic responds to the updated OECD Model Tax Convention Commentary and introduces a unified approach to assessing the taxability of software-related income. At the same time, Slovakia is withdrawing its previous reservation on software taxation. That means it will no longer be necessary to distinguish between “boxed” software and custom-made software.

How will software be assessed from 2026?

1️⃣ Software included in the definition of royalties (Article 12 of the DTT)

If a Double Tax Treaty (“DTT”) explicitly includes software in the definition of royalties, such income will be subject to withholding tax in Slovakia. The applicable tax rate may be reduced based on the relevant DTT.

2️⃣ Software not included in the definition of royalties

In this case, Article 12 of the DTT will not apply.

It will then be necessary to determine whether the payment concerns:

• an access/service arrangement (e.g., platform access) where withholding tax does not apply, or
• software as a licensed product.

The new guidance applies not only to new treaties but also to treaties concluded before 1 January 2026, provided that the income is paid after 31 December 2025.

🔍 What do we recommend?

We recommend you a review existing and future software licensing agreements and alignment of software income classification with the latest Ministry of Finance guidance and OECD interpretation.

💡 Do you have questions?

Our colleagues from the Forvis Mazars tax team will be happy to advise you on how to prepare for these changes. Reach out to us via the contact below.

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The tax environment is a subject to frequent changes. We strive to reflect the current state as accurately as possible, but all information on our website is valid as of the date of publication. If you have any questions or uncertainties, please don’t hesitate to reach out to us. We will assess the current impact of any tax-specific issue on your situation or company.