The Slovak Republic was among the fastest growing OECD economies in the last decade. It is
broadly recognised that the 2004 tax reform contributed to this success. Ten years after this fundamental
reform, however, the time has come to re-evaluate some of the key characteristics of the Slovak tax
system. The Slovak economy faces multiple challenges including an ageing population, a persistently high
unemployment rate, significant regional disparities, skills gaps and risks related to the increasing
international competition for mobile capital. Can the Slovak tax system in its present form prevail against
these headwinds? The paper shows that the current tax system suffers from weaknesses that constrain its
capacity to raise additional revenues and to create the conditions for inclusive and sustainable economic
growth. Although measures have recently been introduced to address some of these challenges, additional
tax reforms and a further strengthening of the tax administration will be needed. The OECD worked jointly
with the Institute for Financial Policy (IFP) of the Slovak Ministry of Finance to provide an overall
assessment of the Slovak tax system and recommendations for future tax policy reforms.