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Transfer Pricing of Domestic Controlled Transactions in the Conditions of the Slovak Republic

Publication date: 30.12.2022

Financial Law Review, 2022, Issue 28 (4)/2022, pp. 14 - 31

https://doi.org/10.4467/22996834FLR.22.022.17140

Authors

,
Filip Baláži
Faculty of Law, Pavol Jozef Šafárik University in Košice in the Slovak Republic
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Elena Lazoríková
Faculty of Law, Pavol Jozef Šafárik University in Košice in the Slovak Republic
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Titles

Transfer Pricing of Domestic Controlled Transactions in the Conditions of the Slovak Republic

Abstract

The article focuses on the transfer pricing in the Slovak Republic. The main subject of this article is the analysis of the legal regulation of transfer pricing of controlled transactions between domestic dependents. The authors examine the very essence of the extension of the transfer pricing obligation and the related obligation to maintain transfer pricing documentation to domestic dependants, with a focus on the analysis of the effectiveness of the legislation under review. The authors are also providing suggestions for potential improvements to the legislation, with particular emphasis on reducing the administrative burden on taxpayers and tax administrators.

References

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Babčák, V.: Dane a daňové právo na Slovensku [Taxes and tax law in Slovakia], Bratislava: EPOS, 2022.

Bánociová, A., Martinková, S.: Vplyv transferového oceňovania v činnosti podnikov [The impact of transfer pricing in the activities of enterprises] (in:) Koreňová, D. (ed.), Aktuálne otázky trvalo udržateľného rozvoja miest a obcí [Current issues in sustainable urban and municipal development], Košice: UPJŠ v Košiciach, 2017.

Bronson, M., Johnson, M., Sullivan K.: Overview/Best Practises. In Guide to International Transfer Pricing – Law, Tax planning and Compliance Strategies, Alphen aan den Rijn: Wolters Kluwer, 2012.

Brychta, K., Ištok, M., Sulik-Górecka A., Poreisz, V.: Transfer Pricing in V4 Countries, Brno: VUTIUM, 2020. DOI: https://doi.org/10.13164/9788021458734.

Burák, E.: Daňová kontrola [Tax control]. Ružomberok: TESFO, 2016.

Cenigová, A.: Podvojné účtovníctvo podnikateľov 2020 [Double-entry bookkeeping of entrepreneurs 2020], Bratislava: Ceniga, 2020.

Kočiš, M.: Úvod do práva transferového oceňovania [Introduction to transfer pricing law], Bratislava: Wolters Kluwer s.r.o., 2015.

Kubincová, S.: Daňový poriadok: komentár [Tax Code: commentary], Bratislava: C.H. Beck, 2015.

Kutišová-Luknárová, D.: Transferové oceňovanie I. – legisltíva, princípy, metódy a dokumentácia v príkladoch [Transfer pricing I. Legislation, principles, methods and documentation in examples]. Bratislava: Verlag Dashofer, 2009.

Levey, M., Wrappe, S. C.: Transfer Pricing: Rules, Compliance and Controversery, 3rd edition, Chicago: CCH Wolters Kluwer, 2010.

OECD. Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. 2017. Ods. 1.6.

Legal Acts:

Act no. 173/1998 Coll. which amends Act no. 286/1992 Coll. on income taxes, as amended, and Act No. 563/1991 Coll. on accounting as amended by Act of the National Council of the Slovak Republic no. 272/1996 Coll.

Act No. 286/1992 Coll. on Income Taxes as amended

Act No. 333/2014 Coll. which amends Act no. 595/2003 Coll. on income tax as amended and which amends some laws

Act No. 366/1999 Coll. on Income Taxes as amended

Act No. 395/2012 Coll. which amends Act no. 595/2003 Coll. on income tax as amended and amending Act no. 580/2004 Coll. on health insurance and on amendments to Act no. 95/2002 Coll. on the insurance industry and on the amendment of certain laws, as amended

Act No. 431/2002 Coll. on accounting as amended

Act No. 595/2003 Coll. on Income Tax as amended

Guideline of the Ministry of Finance of the Slovak Republic no. MF/011491/2015-724

Guideline of the Ministry of Finance of the Slovak Republic no. MF/019153/2018-724

Measure of the Ministry of Finance of the Slovak Republic dated December 16, 2002 no. 23054/2002-92, which establishes the details of accounting procedures and the general accounting framework for entrepreneurs accounting in the double-entry bookkeeping system, as amended

Other official documents:

Explanatory report to Act no. 173/1998 Coll. which amends Act no. 286/1992 Coll. on income taxes, as amended, and Act No. 563/1991 Coll. on accounting as amended by Act of the National Council of the Slovak Republic no. 272/1996 Coll.

Explanatory report to Act No. 333/2014 Coll. which amends Act no. 595/2003 Coll. on income tax as amended and which amends some laws.

Internet resources:

Kutišová-Luknárová, D. Transferové oceňovanie v teórii a praxi – 3 časť [Transfer Pricing in Theory and Practice - Part 3], 2011. Available at: https://www.danovecentrum.sk/odborny-clanok/Transferove-ocenovanie-v-teorii-a-praxi-3-cast.htm, accessed: 11th October, 2022.

OECD 2017.OECD Smernica k transferovému oceňovaniu pre nadnárodné skupiny a správu daní [Transfer Pricing Directive for Multinational Groups and Tax Administrations], 10.07.2017. Available at: http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/oecd-transfer-pricing-guidelines-for-multinational-enterprises-and-tax-administrations-2017_tpg-2017-en#.WW2314TyjIW#page1, accessed: 13th October, 2022.

Solíková, V.: Kontrolované transakcie podľa usmernenia ministerstva financií [Controlled transactions according to Treasury guidance], 13.01.2022. Available at: https://www.podnikajte.sk/dan-z-prijmov/kontrolovane-transakcie-podla-usmernenia-ministerstva-financii, accessed: 10th October, 2022.

Bosquet, L., Casamatta, G., Poniatowski, G., Vellutini, C.: Estimating International Tax Evasion by Individuals, TAXOBSERVATORY.EU. Available at: https://www.taxobservatory.eu/repository/estimating-international-tax-evasion-by-individuals/ accessed: 16th October, 2022.

Office of the Government of the SR. Akčný plán boja proti daňovým podvodom na roky 2012 až 2016 [Anti-fraud action plan 2012-2016]. Available at: https://hsr.rokovania.sk/mf158742012-73/, accessed: 20th October, 2022.

Information

Information: Financial Law Review, 2022, Issue 28 (4)/2022, pp. 14 - 31

Article type: Original article

Authors

Faculty of Law, Pavol Jozef Šafárik University in Košice in the Slovak Republic

Faculty of Law, Pavol Jozef Šafárik University in Košice in the Slovak Republic

Published at: 30.12.2022

Article status: Open

Licence: CC BY-NC-ND  licence icon

Percentage share of authors:

Filip Baláži (Author) - 50%
Elena Lazoríková (Author) - 50%

Classification number:

JEL Classification System:

Tax Law (K34)
Accounting (M41)

Article corrections:

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Publication languages:

English