The transfer pricing rules regulate the prices charged in the intercompany transactions. The main goal is to maintain the arm´s length principle. Pursuant to the Slovak regulation, every related parties obliged to prove the method applied for setting the prices of controlled transactions between related parties and to keep a relevant documentation about this method.
In recent years the number of tax inspections on transfer pricing rapidly increased, that is why we recommend to focus on this area and especially on preparation of the proper transfer pricing documentation.
In this connection, we would like to draw your attention to our brief infographic which covers the basic information on transfer pricing in Slovakia.
For information about transfer pricing regulation in other countries in Central and Eastern Europe -Czech Republic, Hungary, Poland, Romania and Slovakia – click here. The overview covers the applicable legislation, determination of controlled parties, applicable transfer pricing methods, advance pricing agreements, documentation requirements, penalties and other crucial areas.
