Page 62 - Central and Eastern European Transfer Pricing Review

62 | CEE Transfer Pricing Review

Slovenia

KPMG's Views on Transfer Pricing in Slovenia

There are many transfer pricing audits, especially in transactions with foreign
related parties. It can be also noted that in the transfer pricing audits the tax
authorities pay special attention to cross-border business restructurings (in the
light of Chapter IX of OECD Guidelines). In order to minimize the tax risks arising
from transfer pricing, it is recommended to have available up to date transfer
pricing documentation proving that all transactions, including cross-border business
restructurings, were carried out at arms length.

Basic information being 5 years from the day when the connection with each related party,
tax should have been announced, tax numbers of related parties.
Tax authority name calculated, withheld or assessed. The
Ministrstvo za fnance, Davcna uprava period of limitation on the right to the total amount of loans exceeding
Republike Slovenije. assess tax shall be interrupted by any EUR50,000 granted to or received
offcial act by the tax authorities for the from each related party on a yearly
Citation for transfer pricing rules purpose of assessing tax, and in respect basis. In addition, the enclosures
Corporate Income Tax (CIT) Act, Tax of which the taxable person has been shall disclose names of related
parties, with whom the Slovenian
Procedure Act, Rules on transfer prices, informed. The tax liability absolutely entity had transactions, the type
Rules with the respect to recognized ceases after 10 years from when the of connection between related
interest rate among related parties. period of limitation frst started to run.
parties (e.g. mother company,
Effective date of transfer pricing sister company, etc.), tax numbers
rules Transfer pricing of related parties and information
1 January 2007. disclosure overview relating to whether the company
has made any adjustments of the
Are disclosures related to transfer tax base due to transfer pricing.
What is the relationship threshold pricing required to be prepared or
for transfer pricing rules to apply submitted to the revenue authority The adjustment of the tax base due to
between parties? on an annual basis (e.g. with the transfer prices is needed in case the
Direct or indirect ownership of greater tax return)? transactions between related parties
than 25 percent. However, two Enclosures to the CIT return related do not correspond to the arms length
companies can also be considered to transactions with related parties principle. However, the adjustment
related parties if one company is (i.e. report on the amounts of sale between two related resident companies
controlled due to some agreement transactions, purchase transactions and is not required, unless one of the
concluded between these companies loan transactions) have to be submitted companies involved in the transaction
or in case transactions between two to the tax authorities on an annual basis has an accumulated tax loss from
companies differ from conditions that together with the CIT return. previous years, is exempt from CIT or © 2013 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated
would be agreed between unrelated is entitled to use a lower CIT rate.
parties in same or similar circumstances Transfer pricing documentation has to
(i.e. based on economic or some other be prepared on an annual basis. What are the consequences
control). of failure to prepare or submit
What types of transfer pricing disclosures?
What is the statute of limitations information must be disclosed? Tax penalties may apply in the range with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
on assessment of transfer pricing In the enclosures to the CIT returns the between EUR1,200 and EUR30,000
adjustments? following information must be disclosed: (depending on the size of the company)
Transfer pricing adjustments (if any) for the company and between EUR600
are assessed in the CIT return. CIT cumulative yearly amounts of and EUR4,000 for the responsible
returns are based on taxpayers self- receivables and liabilities (exceeding person of the company.
assessment. The right to assess tax 50,000 Euros (EUR)) realized with
shall fall under the statute of limitation, each related party, the type of