Slovakia: local rules

Slovakia has no separate transfer pricing act. The rules are in s. 17(5) and s. 18 of the Income Tax Act 595/2003. They apply to 'dependent persons' (s. 2(n) to (r)): a link starts at a 25% share in capital, votes or profit, and also covers management links, permanent establishment links and links created mainly to cut the tax base. The rules apply to domestic and cross-border deals. A deal counts as significant if it brings income or an expense above EUR 10,000 in the tax year, or if it is a loan with principal above EUR 50,000. If the pricing lowered the tax base or raised the tax loss, the base is increased by the difference to the arm's length price. The OECD Transfer Pricing Guidelines must be used alongside the Act (s. 18(1)).

Every taxpayer with controlled transactions must keep documentation (s. 18(1)). The content is set by Ministry of Finance Guideline MF/012879/2025-724, which replaced MF/020061/2022-724 and first applies to tax years whose return deadline falls after 31 December 2025. There are three levels. Full documentation covers, for example, cross-border deals or groups of deals above EUR 10 million a year. Basic documentation covers cross-border deals above EUR 1 million, or cross-border deals that are material under accounting rules if the taxpayer's revenue is above EUR 8 million. For other deals, a fully completed corporate income tax return is enough, and if it is not, abbreviated documentation in the Guideline's annex is needed. Full and basic documentation each have a group part (master file style) and a specific part (local file style). The law sets no preparation date. The tax office may ask for the documentation from the day after the return deadline, and it must be handed over within 15 days of delivery of the request (s. 18(11)). It may be in another language, but a Slovak version is due within the same 15 days.

Slovakia accepts the comparable uncontrolled price, resale price, cost plus, profit split and transactional net margin methods, and also other methods that fit the arm's length principle (s. 18(1) to (3)). The OECD Guidelines method must be used as well. If the taxpayer's price is outside a range of comparables, the tax audit uses the median, unless the taxpayer shows that another point in the range fits better. A taxpayer may ask for an advance pricing decision at least 60 days before the tax year starts. It lasts up to five years and can be renewed for five more. The fee is EUR 10,000 for a unilateral decision and EUR 30,000 for a bilateral one, halved for taxpayers rated highly reliable (s. 18(4) to (7)).

If a tax audit adjusts the price under s. 17(5)(a) and adds tax, the penalty is twice the normal penalty for understated tax (s. 18a). The normal penalty is three times the ECB base rate a year on the extra tax, and at least 10% a year (Tax Procedure Code s. 155(1)(f) and (5)). A late corporate tax return can be fined EUR 100 to EUR 30,000 (s. 155(1)(a)). No special fine for missing documentation was found in the Income Tax Act, but a general fine of EUR 100 to EUR 10,000 for breaking a non-money duty may apply (s. 154(1)(j) and s. 155(1)(e)). A missing CbC report can be fined up to EUR 10,000 and a missing CbC notification up to EUR 3,000 (Act 442/2012 s. 22g). A late Pillar Two notification or return can be fined EUR 1,500 to EUR 50,000, repeatedly (Act 507/2023 s. 43).

Slovakia has enacted only a qualified domestic minimum top-up tax (QDMTT) in the Top-up Tax Act 507/2023, in force since 31 December 2023. It applies to constituent entities in Slovakia of groups with revenue of at least EUR 750 million in two of the four prior years. The Financial Administration says Slovakia used the EU option to delay the income inclusion rule and the undertaxed profits rule until 31 December 2029. Each Slovak taxpayer files an electronic notification with the GloBE information (or a notice naming the group entity that files the GIR abroad) and a top-up tax return, both within 15 months after the group's accounting period, and 18 months for the transition year (s. 39 and 40). Filings with a deadline before 30 June 2026 were moved to 30 June 2026 (s. 46a(4)). The deadline cannot be extended. Tax is due by the last day of the month in which the return deadline falls. The return must be filed even if no tax is due.

There is no separate transfer pricing form. The corporate income tax return has a part for transactions with dependent persons, and the Guideline treats a fully completed return as the lowest level of documentation. Groups with revenue of at least EUR 750 million in the previous year file the CbC report within 12 months after the reported year (Act 442/2012 s. 22b). Each Slovak entity must tell the tax authority its CbC role and the group and parent names by the last day of the deadline for its corporate tax return for that year (s. 22e), and need not repeat this if nothing changed. The corporate tax return is due three calendar months after year end, and the tax is due the same day. On notice before the deadline, it can be extended by up to three months, or up to six months if the company has foreign-source income (s. 49(3)). If a deadline falls on a Saturday, Sunday or day of rest, it moves to the next working day (Tax Procedure Code s. 27(4)).