Slovakia: Guidance on proving identity of beneficial owner of income
Guidance issued in the form of recommendations, not legally binding
Guidance issued in the form of recommendations, not legally binding
The Financial Directorate, in cooperation with the Ministry of Finance and Chamber of Tax Advisors, released guidance on proving the identity of the beneficial owner of income.
The Slovak income tax law contains a definition of the “beneficial owner” of income, along with a process in case the taxpayer is not able to prove the identity of the beneficial owner, which can lead to higher taxation. The new guidance provides information on the method of proving the identity of the beneficial owner of income, including with respect to:
- Indicators of risk level for individual transactions
- Categorization of transactions according to the risk level into three categories (containing brief description and examples)
- The way, form, extent, and cadence of proving the identity of the beneficial owner for individual categories
- Draft of affidavit and draft of questionnaire applicable for certain categories of transactions
- Examples of other documents proving the identity of the beneficial owner
Note that the guidance is issued in the form of recommendations and as such is not legally binding.
Read a September 2023 report prepared by the KPMG member firm in Slovakia
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