Cabinet: Supranational Firms in EU to Provide More Information to Tax Offices

Supranational firms to provide more detailed data to tax offices (photo by TASR)

Bratislava, October 26 (TASR) – Supranational companies should provide annual reports including detailed business information to tax offices in EU member countries as of next year, according to an amendment to the law on international assistance and cooperation in tax administration approved by the Cabinet at its regular session on Wednesday.

The report should, for example, contain data on revenues, profit or loss before taxation, paid income tax, employees and the firm’s assets for each country where the supranational company operates. The offices of countries concerned will then mutually exchange these data.

“The main goal of the bill is to ensure comprehensive and effective management cooperation among tax administrations extended by another type of mandatory automatic information exchange,” stated the Finance Ministry, the draft’s submitter. The aforementioned information will serve for purposes of tax administration and will not be made public.

Only supranational companies with consolidated revenues of at least €750 million will be obliged to submit reports like this. The responsibility will also apply to a supranational firm’s parent company. With regards to the sum of total consolidated revenues, it is expected that an impact on Slovak parent companies will be negligible.

The EU directive on the mandatory automatic exchange of tax information from this May is being transposed into Slovak legislation with this amendment. The directive is a part of the fight against tax evasion and aggressive tax planning.