The Financial Administration has published a news regarding new permanent establishment (PE) rules for digital platforms. It was introduced by the Tax Reform Law for 2018.
In accordance with new PE rules, the registration of the permanent establishment of the digital platform will allow taxpayers who provide transportation or accommodation to refrain from withholding a tax on mediation payments. Taxation of digital platforms was addressed by the Consultative Board of the President of the Financial Administration. This release also states that, from January 1, 2018, digital platforms must register a permanent establishment in Slovakia. Otherwise, the Slovak tax entities that use foreign digital platforms to mediate the sale of their services are obliged to deduct payment tax from intermediary payments to paid foreign operators of the digital platform. Financial administration is a modern, proactively oriented institution to enhance electronic communication.
