Tax Office for Selected Taxpayers

What it means

The Tax Office for Selected Taxpayers in Bratislava is a special office of the Financial Administration that administers taxes not according to where a company is based but according to its size and type. It covers the largest companies, banks, insurers, other financial institutions and certain other entities from all over Slovakia.

Who counts as a selected taxpayer is decided by criteria in the act on state tax authorities, mainly turnover in the previous period and the type of activity. The Financial Administration publishes and updates the list once a year. A company that meets the criteria moves under this office automatically from the start of the following year.

The office has specialists in complex transactions, transfer pricing and international structures. For large companies this means a single tax administrator for all taxes regardless of where their sites are, and closer scrutiny.

How it works in practice

When a company moves under this office, its competent authority changes: filings, payments and correspondence go to the new office from 1 January. The account numbers for paying taxes depend on which office administers them, so payment templates in the bank and the accounting software must be updated.

Selected taxpayers are more often subject to tax audits, and the office also runs so-called horizontal cooperation, in which the company consults on contentious issues in advance. For large companies it makes sense to build the relationship with the tax administrator systematically and have documentation ready for key transactions.

Electronic communication through eDane and slovensko.sk works the same as with other offices. The taxpayer’s tax account stays in the same system, just with a new administrator. The move affects neither the amount of tax nor the deadlines.

What to watch out for

The most common mistake after the move is paying tax into the old office’s account. The money can usually be transferred, but until it is, arrears with late payment interest may arise at the new office and the company may end up on the debtors’ list.

The second mistake is underestimating the closer scrutiny. Practices the smaller office did not challenge for years may be judged differently by the new one at its first audit. When moving over, it is worth carrying out your own review of sensitive areas such as related-party transactions and VAT deductions.