At the end of 2022, the new Guideline of the Ministry of Finance of the Slovak Republic No. MF/020061/2022-724 (hereinafter referred to as the “New Guideline”) on the Determination of the Content of Transfer Pricing Documentation (hereinafter referred to as the “Documentation”) was published in the Financial Bulletin. The New Guideline will apply when preparing the Documentation for the tax period beginning after 31 December 2022.
The New Guideline also introduces a documentation requirement for credits and loans that do not affect the income tax base.
The New Guideline also introduces a change for permanent establishments in the form of an extension of the Documentation obligation. In addition to the standard elements of full, basic or abbreviated Documentation, an obligation is introduced for permanent establishments to document the method of allocation of the capital and financing costs of the permanent establishment if the permanent establishment claims them as tax expenses.
The scope of entities that are obliged to keep abbreviated Documentation (where full or basic Documentation is not prepared for a given transaction) has also been also modified. This Documentation is now to be kept by:
- in a significant controlled transaction, taxpayers that have recognised a tax loss in the relevant tax period, claim a tax loss deduction, or do not qualify for the reduced 15% income tax rate,
- in a controlled transaction, taxpayers that claim tax relief in the relevant tax period.