Earning abroad? You could lose your child tax bonus

From January, only those earning at least 90 percent of their income in Slovakia qualify for the child tax bonus – a tax benefit that lowers the income tax burden for parents or guardians supporting dependent children.

Employees with more than 10 percent of their earnings from abroad risk losing it.

Uncertainty over the rule left employers unsure when to stop payments and what counts as foreign income, writes Denník N daily. Initial guidance suggested the bonus should be halted even if an employee had only just received their first foreign earnings. This caused confusion, particularly for workers who frequently travel abroad, such as lorry drivers.

The Finance Ministry later clarified that employees sent abroad by Slovak firms remain eligible, as travel allowances – covering work-related expenses incurred abroad – do not count as foreign income. Slovakia’s tax authority, the Financial Administration, confirmed this and issued updated guidance. Only taxable foreign income is considered when assessing eligibility.

Employees uncertain whether their foreign earnings exceed the 10-percent limit should report it to their employer, who will then stop paying the bonus. If their total income stays within the threshold, they can reclaim the bonus through annual tax reconciliation. Non-residents can only claim it after the tax year ends, provided at least 90 percent of their income was earned in Slovakia.

Employees earning exclusively in Slovakia can claim the bonus throughout the year if they are Slovak tax residents. However, employers can only grant the bonus during the year if the employee signs a new declaration form to claim the non-taxable part of the tax base and the tax bonus. 

Denník N also reports that, after the annual tax reconciliation, employees were not required to return any overpaid child bonuses to the state. However, as of January, if an employer has granted a higher child bonus during the year than what is calculated in the annual tax reconciliation, the employee is now obliged to repay the difference to the tax office.

Employees may also access bonuses through their tax returns.