Tax & Legal Services
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Tax & Legal Services kpmg.sk KPMG in Slovakia 3 | Tax and Legal Services Clear, unique, innovative and committed to serve our clients. Tax & Legal Services of KPMG. Tax and Legal Services | 4 Tax & Legal Services The Slovak legislative environment adapts rapidly as the economy changes to adjust to current economic trends and EU requirements. In addition to new or amended legislation, there are significant changes in the interpretation of existing regulations. In these circumstances, effective advice and innovative planning can give your business the competitive advantage. Our tax and legal practice shares the same core KPMG values of clarity, excellence, innovation and, most of all, client service. We offer a range of domestic business and personal services designed to meet the needs of your business, regardless of its size. Because we know how complex tax and legal matters can be, we make it our business to stay abreast of new laws, policies, accounting and commercial principles, and international tax treaties. Our aim is to turn this knowledge into value for the benefit of our clients. Tax Legal Compliance Services +Services = 5 | Tax and Legal Services Tax Services Tax is a cost of doing business and a key part of the business environment. Companies need to adapt to the tax environment in which they operate, ensuring that they meet the requirements of the environment, and that they mitigate unnecessary costs and maximize planning opportunities. Slovak tax legislation and practice is in a state of continuous change and development. The changes are influenced by a variety of factors, including the desire to adapt to the current market environment, as well as to close tax loopholes and bring Slovak tax laws into line with more developed economies. However, the interpretation and enforcement of tax laws and regulations can be unpredictable in practice, and penalties for non-compliance remain. Having said that, many opportunities exist for tax savings and efficient tax planning. Because we know how complex tax matters can be, both in the Slovak Republic and in foreign markets, we make it our business to keep attuned to changes in domestic and international tax laws, policies, accounting and commercial principles, and international tax treaties. Our aim is to turn this knowledge into value for the benefit of our clients. We listen to our clients to understand their needs, and then we contribute where we can add most value. That might mean drawing on our knowledge and experience of working with other clients and regulators to help anticipate and respond to change, or it could be overlaying our understanding of your business at the national level with what we know has worked in other countries. Tax and Legal Services | 6 Our key tax services include advice and services in the following areas: Corporate CIT Preparation CIT advisory Mergers & Transfer Income Tax registration of CIT returns services Acquisitions pricing Value VAT advisory VAT registration VAT compliance VAT review Added Tax services Personal Preparation of PIT returns Other compliance services Income Tax State Aid State aid applications and compliance State aid advisory Payroll & Accounting Payroll services Accounting services Services Other Tax Services Other taxes and customs duties Tax administration 7 | Tax and Legal Services Corporate A relatively low headline rate does European countries. The actual Income Tax not have to mean low tax cost. corporate tax incurred can, however, be While the „headline“ tax rate in Slovakia very significant. We can work with you to was reduced to 19% over the past years, help minimize your tax costs and to help increased to 23% from 2013 and reduced identify comprehensive commercial to 22% from 2014, it is still a lower rate strategies to address tax problems and than the tax rate in many western opportunities arising from your business activities. 50 45% 45 40% 40 35 29% 30 25% 25 23% 20 19% 15 22% 10 5 0 1993 1994 2000 2002 2004 2013 2014 Tax and Legal Services | 8 Preparation Corporate income tax returns are often we aim to bring to your attention the tax of CIT returns challenged by tax authorities. Our risks and opportunities arising from your corporate tax compliance services include business, and suggestions for further the preparation or review of corporate procedural or planning opportunities. income tax returns. During this process CIT advisory Local and international tax issues both avoiding double taxation and services need to be addressed in time. While identifying opportunities for minimizing the impact of taxation on transactions the overall tax burden. With our expatriate within national boundaries is important, tax professionals, and KPMG member the impact of taxation on cross border firms‘ global network, we work closely transactions can be even more critical to a together to produce tools tailored to your business. Understanding the tax systems individual needs and circumstances. in the countries involved is fundamental in Mergers We can help ensure that design deals that take account of the acquisitions create shareholder exposures and opportunities revealed & Acquisitions value. We offer a wide range of M&A during tax due diligence. We can also tax services covering various phases of help during negotiation and deal domestic and cross-border transactions: execution, by focusing on the tax Tax due diligence services can track down efficiency of contractual arrangements, the tax information that the acquirer and the value of warranties and or vendor needs to answer the vital indemnities in contracts. In due diligence questions; where’s the tax exposure and and deal structuring, we assess the value what can be done about it; where are the of the target’s tax attributes, identify tax opportunities and how can they be contingent tax liabilities, and address captured? By structuring acquisitions and other important, but often overlooked disposals with our technical structuring issues, such as asset retention, debt know-how, and an understanding of each placement, separation agreements party’s business priorities, we help to and exit plans. Transfer Transfer pricing is a business matter. documentation requirements were pricing Transfer pricing affects the terms of introduced. Businesses must, therefore, transactions with related parties which plan now for compliance with the must be compliant with the arm’s length new rules and anticipated future requirement. It is a dynamic area of developments. Tax authorities often international tax, and we can anticipate scrutinize transactions with foreign further changes in Slovak tax law and related parties, and challenge transfer practice in the future. With effect from pricing documentation which does not 1 January 2009, formal transfer pricing comply with the requirements for its contents. 9 | Tax and Legal Services Value VAT issues are more complex caused major changes in how a company Added Tax than ever. Failure to comply with VAT does business. We offer both compliance requirements can represent a significant services and advisory services to help expense for your business. Legislation identify the risks and opportunities that and requirements in this area change may arise in relation to the new regularly, in part due to the accession legislation. As part of our services we of Slovakia to the European Union on look closely at the business model used, 1 May 2004, which in many cases has since modifications to structure can often lead to significant cost reductions. Personal Personal income tax compliance personal tax compliance services to Income Tax is an issue for all employers and provide you with a single source for individuals. Our International Executive addressing all international assignment Services tax professionals provide business issues. We can assist you in comprehensive compliance, advisory and determining the social and health administration services to support your insurance treatment of your assignees or assignees as well as entrepreneurs. We employees, and address the impact of EU offer both personal tax planning and regulations in this area. Tax and Legal Services | 10 State Aid A duly drafted application and available financing sources for purposes connected with, among others, planned and EU Funds entire process management is a must. Over the past few years the Slovak investment, creating new workplaces, investment incentives regime has been development and research projects, subject to continual change to meet the and training for employees. The proper challenges of Slovakia‘s developing preparation of state aid strategy, economy. KPMG in Slovakia has a Grants applications, fulfilment of numerous & Incentives Team dedicated to providing formal requirements, as well as services for entities interested in winning negotiations with public authorities public financial support for their activities, (Slovak and/or EU) are all critical for and advisory in the scope of state aid. Our effectively obtaining and using grants team assists in the effective use of and incentives. Payroll Payroll and accounting are func- Our team comprises very experienced and Accounting tions often outsourced to specia- specialists who maintain the payroll lists, either for efficiency reasons, agenda and accounting records for a Services or in order to secure the confiden- number of clients, and can deal with tiality of payroll data. We offer our complex issues. clients maintenance of their payroll agenda, as well as accounting services. Other Customs duties or other business duties, property tax, motor vehicle tax and Tax Services taxes are trade expenses which can other taxes. We monitor developments in often be managed. Our services include these areas to provide you with up-to-da- advisory in customs matters, excise te and accurate information. 11 | Tax and Legal Services Legal Services Around the world, our clients face an increasingly complex legal and regulatory environment that has a significant impact on their day-to-day business activities and future strategies. KPMG provides its clients with a unique combination of standard KPMG services and high-quality and properly tailored legal advice.