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Transfer pricing study Transfer pricing methods If an adjustment is sustained, can
overview Are transfer pricing methods penalties be assessed? If so, what
rates are applied and under what
Is preparation of a transfer pricing outlined in Chapter II of the conditions?
study required i.e. can the OECD Guidelines acceptable? Yes. In case the tax base is lower
taxpayer be penalized for mere Yes. than it should have been, penalties
failure to prepare a study? for understated tax liabilities range
Is there a priority among the
Yes, for all transactions. between 30-45 percent (depending
acceptable methods?
if micro/small or medium/large
Other than complying with a The arms length price has to be proven company) of understated tax liability,
requirement per the previous by using the most appropriate transfer but not more than EUR150,000 (for
question, describe the benefts, if pricing method. If the arms length price micro/small companies) or EUR300,000
any, of preparing and maintaining can be proven with the same reliability (for medium/large companies) and from
a transfer pricing study? using traditional transaction methods EUR700 to EUR5,000 (also depending if
The benefts are as follows: and proft based methods, transaction micro/small or medium/large company)
methods have priority over proft based for the companys responsible person.
penalty protection methods and internal comparables
mitigate risk of tax authority have priority over external comparables. To what extent are transfer pricing
making adjustments. Comparable uncontrolled price method penalties enforced?
has priority over other methods. Increasingly.
To satisfy the requirement and/or
obtain the benefts, are there any If there is no priority of methods, What defenses are available with
requirements on when the transfer is there a best method rule? respect to penalties?
pricing study must be prepared No. Prepared transfer pricing documentation
and submitted? containing all the data required by the
The transfer pricing study has to be Transfer pricing audit Slovenian Tax Procedure Act.
prepared at the latest by the time the and penalties
CIT return is submitted (within 3 months What trends are being observed
after the end of the tax year). The When the tax authority requests currently?
transfer pricing study must be submitted a taxpayer s transfer pricing Tax audits are often triggered in cases
immediately to the tax authorities upon documentation, how long does when the taxpayer makes a self
their request. If this is not possible, it the taxpayer have to submit its announcement.
must be submitted within 30-90 days documentation?
(the deadline for submission is set by The tax authority may request transfer The tax inspectors are mainly focused on
the tax authorities). pricing documentation in the case of a cross-border transactions in tax audits.
tax audit. The taxpayer has to submit it Recently, there have been many tax
When a transfer pricing study is immediately, but if the transfer pricing audits in companies that were involved
prepared, should its content follow documentation is not prepared, the tax in business restructurings.
Chapter V of the OECD Guidelines? authority give the taxpayer 30-90 days for
No. According to tax law, transfer the preparation depending on the extent
pricing documentation shall comprise and the complexity of the data. Special considerations
of a Masterfle and Country Specifc Are secret comparables used by
File, containing the information which If an adjustment is proposed by the tax authorities?
generally follows Chapter V of the tax authority, are dispute resolution KPMG in Slovenia has not yet seen that
OECD Guidelines. options available to the taxpayer secret comparables have been used.
outside of competent authority?
Does the tax authority require an In general yes (Ministry of Finance and Is there a preference, or requirement,
advisor/tax practitioner to have Administrative court). by the tax authorities for local
specifc designation in order comparables in a benchmarking set?
to prepare or submit a transfer
pricing study? No.
No.

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