Did you know that yo can request in writing the Financial Directorate a binding opinion?

A taxpayer may request in writing the Financial Directorate to issue a binding opinion on the application of tax regulations when assessing a specific situation. Specifically, this concerns the application of the provisions of the Income Tax Act and the Value Added Tax Act.

Binding Opinion on the Income Tax Act

A binding opinion on the application of the provisions of the Income Tax Act (SITA) is issued to assess:

• the source of income of a taxpayer with limited tax liability according to Section 16 of the SITA – income from sources in the territory of the Slovak Republic of a tax non-resident, permanent establishment in the territory of the Slovak Republic;
• the sale and purchase of a business or part thereof in real values ​​according to Section 17a of the SITA – determination and adjustment of the tax base of the taxpayer selling/buying the enterprise;
• adjustments to the tax base by the amount of an unpaid liability or part thereof after the due date according to Section 17, par. 27 and 32 of the SITA – adjustment of the tax base for liabilities that are more than 360 days past due and subsequently adjustment of the tax base for the period in which such a liability was settled;
• tax deductibility of expenses according to Section 19 of the SITA – tax expenses whose amount is limited by law or special regulation;
• deduction of tax loss according to Section 30, par. 1 to 4 of the SITA – deduction of tax loss for a legal entity, an individual, a legal successor of an extincted taxpayer, a partner in a general partnership and a general partner in a limited partnership;
• correct application of the provisions of Section 43 of the Income Tax Act for tax collected by withholding.

Binding opinion on the VAT Act

A binding opinion on the application of the provisions of the Value Added Tax Act (VATA) is issued to assess:

• the occurrence of tax liability according to Sections 19 to 21 of the VATA – tax liability upon delivery of goods and services, upon acquisition of goods in the country from another Member State and upon import of goods;
• tax rates for goods according to Section 27 of the VATA – assessment of the application of the basic or reduced tax rate for goods;
• a person liable to pay value added tax according to Section 69, par. 12 of the VATA – upon domestic delivery of metal waste and scrap, domestic delivery of real estate or part thereof, delivery of mobile phones, integrated circuits, construction works, iron and steel, cereals, etc.;
• fulfilment of the conditions for the existence of an establishment according to Section 4, par.5 of the VATA – permanent establishment for value added tax purposes.

The taxpayer's request for the above areas must include:

• detailed description of the facts that have occurred/will occur - background,
• the taxpayer's proposal to apply the procedure according to the applicable tax regulations,
• legal assessment,
• the amount of the expected business case.

The taxpayer is required to pay a fee of EUR 1,000 together with the request. A highly reliable taxpayer pays half of this amount. Please note that the fee of EUR 1,000 is linked to the provision of a binding opinion on one business case and one legal regulation. The fee is paid without a request and is due upon submission of the request for a binding opinion. The opinion will be issued within 60 days from the date of receipt of the request, or from its supplementation upon the request of the Financial Directorate.