Slovak Republic to Revise Interest Deduction Limitation, Transfer Pricing Rules, and Penalties

The Ministry of Finance of the Slovak Republic has recently proposed several measures amending the Income Tax Act and the Act on Tax Administration. Key measures include:

• Revised rules on limiting the deduction of interest exemption in line with the EU Anti-tax Avoidance Directive (the Slovak Republic was granted a deferral until 2024 due to already having equally effective rules);
• Revised definitions of foreign dependent (related) persons, controlled transactions, and significant controlle…