Page 58 - Central and Eastern European Transfer Pricing Review

58 | CEE Transfer Pricing Review

Slovakia

KPMG's Views on Transfer Pricing in Slovakia

After the introduction of mandatory transfer pricing documentation (for taxable
periods starting from 2009), transfer pricing became one of the top priorities for
the Slovak tax authorities. The tax authorities started to focus on transfer pricing
audits and inspect transfer pricing arrangements in more detail than ever before. The
tax authorities have placed a greater focus on transfer prices for transactions with
foreign related parties than the prices used for domestic transactions, since in principle
transfer pricing only applies to transactions with foreign related parties in Slovakia. The
tax authorities have built specialized transfer pricing teams and it is expected that the
number of transfer pricing audits to be carried out on corporate taxpayers is again going
to increase.

Basic information amendment laying down the obligation to Transfer pricing
maintain transfer pricing documentation
Tax authority name became effective on 1 January 2009. disclosure overview
Daňový úrad (tax authorities). Are disclosures related to transfer
What is the relationship threshold pricing required to be prepared or
Citation for transfer pricing rules for transfer pricing rules to apply submitted to the revenue authority
Article 2 Letter n through r, Article 17 (5) between parties? on an annual basis (e.g. with the tax
through (7), and Article 18 of the Act No. More than 25 percent direct or indirect return)?
595/2003 Coll. on the Income Tax as share of voting rights or registered Corporate taxpayers are required to
amended. capital, or personal relation (statutory disclose in their annual tax return certain
bodies) or business relation solely for information regarding transactions with
Guidelines of the Ministry of the purpose of decreasing tax base/
Finance of the Slovak Republic No. increasing tax loss. related parties.
MF/8288/2009-72 on details regarding What types of transfer pricing
the content for keeping documentation What is the statute of limitations information must be disclosed?
for the transfer pricing method applied on assessment of transfer pricing
by a taxpayer according to the Article adjustments? Terms of the following transactions
18 (1) of the Act No. 595/2003 Coll. on Five years from the calendar year-end concluded with foreign-based related
the Income Tax as amended. parties have to be reported in the annual
of the fling date. Seven years if the tax return of a corporate entity (all values
Effective date of transfer pricing taxpayer carries forward tax losses stated in Euros (EUR)):
rules according to income tax legislation interest resulting from provision of
General transfer pricing rules have been effective from 1 January 2010. loans or credits
Maximum statute of limitations is
applicable since the introduction of 10 years. Ten years always applies if
the frst post-communist income tax international tax treaties are involved. granting license rights
legislation in the 1990s. An important provision of services

transfer of tangible, intangible and
fnancial assets

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