International corporations will be required to submit reports about their activities in every EU country in which they do business. This stems from the amendment to the law on international help and cooperation when administering taxes, which the parliament approved on February 1, 2017.
Through the amendment, the parliament transposed the EU regulation, whose aim is to secure comprehensive and effective administrative collaboration between tax administrations via mandatory automatic exchange of information. The amendment comes into force on March 1, the SITA newswire reported.
The parent companies of international groups will be obliged to send selected types of information to the financial directorates of respective countries. This includes, for example, the amount of total revenues, profit before taxes, and number of employees.
The measure will concern those international firms with annual turnover amounting to at least €750 million, which means it will have a minimal impact on Slovak parent companies, according to the Finance Ministry.
“The reporting duty to identify the subject that will submit the report for the group, however, concerns every legal person and permanent premises that are tax residents in Slovakia and are members of such groups of international companies,” the ministry added, as quoted by SITA.
The information will be sent from every country in which a company resides. Subsequently, the financial directorates will exchange the information with one another. It will be a private exchange, which means they will be protected by tax secrecy and only financial directorates will be able to work with the information.
6. Mar 2017 at 5:30 | Compiled by Spectator staff