5.2. Non-taxable portion of the tax base for contributions to supplementary retirement savings (third pillar)

It is a part of the taxpayer's contribution to supplementary retirement savings (up to the third pillar). The non-deductible part of the tax base also includes contributions to supplementary pension savings abroad of the same or similar type. The maximum amount of this non-taxable portion is €180 for a taxable period. This amount is fixed by the Income Tax Act. The limit applies to all taxpayers (domestic and foreign employees, tradesmen, etc.) as well.

In order to claim this taxable amount, the taxpayer has to meet the following conditions: the participant under which he paid contributions for supplementary pension savings was concluded after December 31, 2013 or was amended and the change in the plan was canceled, the taxpayer has not entered into a contract with another participant who does not meet the conditions laid down by the law on supplementary retirement savings (Figure 4).

The development of a non-taxable portion of the tax base is based on the development of the subsistence level. The minimum age has not changed for the last 4 years, and therefore there has been no change in the taxable portion of the tax base. The non-taxable portion of the tax

Figure 4. Trend of non-taxable portion in Slovakia. Source: Ref. [9].

base affects the amount of tax liability of business entities and individuals. This is a legal form of tax deduction, which the taxpayer optimizes the tax base.

The taxpayer is entitled to claim a non-taxable portion of the tax base only from the sub-base of the tax on income from dependent activity, business income, other self-employment, rental, use of the work and artistic performance.
