Pilier 2 na Slovensku: prvé lokálne administratívne povinnosti sa blížia

Act No. 507/2023 Coll. on Top-up Tax has been effective in Slovakia since 31 December 2023. The Act transposes the Pillar Two (GloBE) rules into Slovak law and introduces a Qualified Domestic Minimum Top-up Tax (QDMTT). Its purpose is to ensure that both multinational and domestic large enterprise groups are subject to a 15% minimum effective level of taxation.

The first compliance obligations in Slovakia already apply in respect of 2024 (i.e., the first fiscal year beginning no earlier than 31 December 2023), and the deadline for meeting the first local obligations is 30 June 2026.

Who is in scope?

The Act applies to constituent entities located in Slovakia that are members of a multinational enterprise group or a large domestic group with consolidated revenue of at least EUR 750 million in at least two of the four immediately preceding fiscal years. As a rule, the effective tax rate (ETR) and the top-up tax are computed at the jurisdictional level, i.e., jointly for all relevant constituent entities of the group located in Slovakia. The resulting top-up tax is then allocated among the individual entities in accordance with the applicable rules.

How must entities comply in Slovakia? 

Affected Slovak entities must primarily address two separate obligation streams:

• A notification / information filing obligation relating to the data required to determine the top-up tax, or to identify which group entity files the GloBE Information Return (GIR) on behalf of the group
• A local top-up tax return

Each Slovak taxpayer must file its own top-up tax return separately, even when it meets the conditions for a safe harbor or the final top-up tax liability is nil.

By contrast, in the case of the notification obligation, it may be possible — subject to meeting the statutory conditions — for one designated Slovak entity to fulfill this obligation on behalf of several Slovak entities within the same group. However, this does not replace the individual obligation of each Slovak entity to file its own local top-up tax return.

Key deadlines

For the first, so-called transitional period, the deadline for fulfilling the compliance obligations and paying the top-up tax extends to 18 months (but not earlier than 30 June 2026). Thereafter, the standard deadline will be 15 months after the end of the relevant period.

The instructions, relevant form templates and their electronic XML versions are already available through the portals of the Slovak Ministry of Finance and the Slovak Financial Administration.

What should groups focus on?

Although we do not expect every group in Slovakia to actually pay top-up tax, administrative and data readiness will be critical. Based on our experience, affected groups should review the following areas without delay:

• Analysis and mapping of Slovak constituent entities: Confirm whether the group meets the statutory consolidated revenue threshold of EUR 750 million, and identify all Slovak entities, permanent establishments, joint ventures and exclusions.
• Data and accounting standard: Align local data, consolidation packages, Country-by-Country Reporting (CbCR) data and data required for the GIR. Assess which accounting standard is relevant for the GloBE calculations.
• Calculation of the effective tax rate (ETR) and adjusted covered taxes: Review the impact of permanent differences, tax incentives, exemptions, and deferred tax. Slovakia’s nominal corporate income tax rate does not, by itself, guarantee an ETR above 15% for Pillar Two purposes.
• Safe harbors: Assess whether any safe harbor may apply, especially the safe harbor based on a Qualified CbC Report, and whether the group has the required qualified data available.
• Substance-based Income Exclusion (SBIE): Verify the location of employees and assets, eligible payroll costs, capitalised payroll costs, lease arrangements, and the practical administrative burden of the calculation.
• Slovak tax incentives: Review the impact of investment aid, the Slovak R&D super-deduction, and other incentives on the Slovak ETR.
• Process setup: Define the allocation of responsibilities between headquarters, the local finance/tax team, and external advisers. It is important to align global calculations with Slovak legislation and filing requirements.

What we recommend doing now

1. Confirm scope
Identify all relevant Slovak entities, permanent establishments, and joint ventures.

2. Review data
Check data needed for GloBE Income or Loss, Adjusted Covered Taxes, safe harbors, and SBIE.

3. Assess safe harbors
Assess whether safe harbors are available and whether the group is ready for local compliance filings.

4. Map incentives / deferred tax
Evaluate the impact on the Slovak jurisdictional ETR.

5. Set up local process
Ensure each Slovak entity can file its own return on time — even where the top-up tax is nil.

How we can help

• We can provide comprehensive advisory support and tailored training/workshops for your company.
• Using a dedicated calculation, we can assess whether the company may have a top-up tax liability.
• We can review eligibility for safe harbors that may simplify the compliance burden (e.g., safe harbors based on a Qualified CbC Report).
• We can prepare the relevant filings — the top-up tax notification and the top-up tax return.

Disclaimer: This material is intended for general informational purposes only and should not be relied upon as accounting, tax, legal or other professional advice. Please consult your professional adviser for advice tailored to your specific circumstances.