- Updated
- October 2025
- Sections
- 14
- Questions
- 42
Key Facts
Core Framework
The Corporate Income Tax Act, Article 16 (in Slovene language) and the Rules on Transfer Prices (in Slovene language)
The arm’s length principle is incorporated in the Corporate Income Tax Act (hereinafter: CITA-2) in Article 16. Further implementation of the OECD Transfer Pricing Guidelines (hereinafter: TPG) is to be found in the Rules on Transfer Prices.
Decision of Supreme Court X Ips 1138/2006 Decision of Supreme Court X Ips 452/2014
The TPG is used as a practical tool by the taxpayer and by the tax administration to determine the arm’s length remuneration based on the CITA-2 and the Rules on Transfer Prices. The Supreme Court in its the decision X Ips 1138/2006 (point 15) as well as in decision X Ips 452/2014 (point 10) indicated that TPG is used as an interpretative or indicative tool in the assessment of transfer pricing within the CITA-2.
Rules on Transfer Prices (Section 1 to 5, Article 1a to 21)
The Rules on Transfer Prices in Sections 1 to 5, Articles 1a to 21, give a general outline of the guidance on comparability analysis.
Rules on Transfer Prices (Section 1 to 5, Article 1a to 21)
If domestic comparables are available, then there is a preference to use them. However, due to the small size of the Slovenian market domestic comparables are very rarely available.
Rules on Transfer Prices (Section 1 to 5, Article 1a to 21)
Rules on Transfer Prices (Section 5, Article 21)
Rules on Transfer Prices in Section 5, Article 21 provide for the use of the arm’s length range in determining the arm’s length remuneration. In general, the rule states that if there are highly reliable figures in a range the arm’s length price is determined by the figure in the range that best reflects the facts and circumstances of the transaction. However, if figures in a range are not reliable, the interquartile range and the median are used for determining the arm’s length price.
Documentation
Tax Procedure Act (in Slovene) in Article 382 (TP documentation) and Articles 248b, 255i, 255j, 255k, 255l, and 397 (CbCR reporting & exchange); Rules on the Implementation of the Tax Procedure Act (in Slovene); Section 6 Articles 86.c to 86 g. and Annex 21 (CbCR reporting & exchange); Rules on the Corporate Income Tax Return (in Slovene), Annex 15 & Annex 16; Tax administration’s booklet: Transferne cene Point 2.1 (p.8-11)
The concept of the Master File and Local File, which together constitute transfer pricing documentation, was introduced into Slovene tax law in 2006. Article 382 of the Tax Procedure Act outlines the requirements. The Country-by-Country (CbC) Report was incorporated in 2016. Filing requirements are aligned with BEPS Action 13.
Tax Procedure Act (in Slovene) in Article 382 (TP documentation) and Articles 248b, 255i, 255j, 255k, 255l, and 397 (CbCR reporting & exchange); Rules on the Implementation of the Tax Procedure Act (in Slovene); Section 6 Articles 86.c to 86 g. and Annex 21 (CbCR reporting & exchange); Rules on the Corporate Income Tax Return (in Slovene), Annex 15 & Annex 16; Tax administration’s booklet: Transferne cene Point 2.1 (p.8-11)
The concept of the Master File and Local File, which together constitute transfer pricing documentation, was introduced into Slovene tax law in 2006. Article 382 of the Tax Procedure Act outlines the requirements. The Country-by-Country (CbC) Report was incorporated in 2016. Filing requirements are aligned with BEPS Action 13.
Tax Procedure Act (in Slovene) in Article 382 (TP documentation) and Articles 248b, 255i, 255j, 255k, 255l, and 397 (CbCR reporting & exchange); Rules on the Implementation of the Tax Procedure Act (in Slovene); Section 6 Articles 86.c to 86 g. and Annex 21 (CbCR reporting & exchange); Rules on the Corporate Income Tax Return (in Slovene), Annex 15 & Annex 16; Tax administration’s booklet: Transferne cene Point 2.1 (p.8-11)
The concept of the Master File and Local File, which together constitute transfer pricing documentation, was introduced into Slovene tax law in 2006. Article 382 of the Tax Procedure Act outlines the requirements. The Country-by-Country (CbC) Report was incorporated in 2016. Filing requirements are aligned with BEPS Action 13.
Tax Procedure Act (in Slovene), Part 6. Articles 394 to 402.a
There are no specific compliance incentives or penalties directly associated with transfer pricing documentation. General penalties for non-compliance with tax obligations—such as incorrect assessment or failure to pay tax—apply.
TP Methods
- CUP
- Resale Price
- Cost Plus
- TNMM
- Profit Split
Selection: Most appropriate method
Dispute Resolution
Slovenia’s MAP Profile
Mechanisms include Enhanced engagement or cooperative compliance programmes, Advance Pricing Agreements (Unilateral, Bilateral, Multilateral), and Mutual Agreement Procedures.
Slovenia’s MAP Profile
Mechanisms include Enhanced engagement or cooperative compliance programmes, Advance Pricing Agreements (Unilateral, Bilateral, Multilateral), and Mutual Agreement Procedures.
Simplifications
Rules on the tax-recognized interest rate (in Slovene: Pravilnik o priznani obrestni meri)
Article 19 of CITA-2 introduces a provision for determining the tax-recognized interest rate, which may be regarded as a “safe harbour rule” for transfer pricing purposes. In calculating this rate, the officially published risk-free interest rate for a currency is considered, along with mark-ups reflecting maturity and creditworthiness of the borrower.
Slovenia’s domestic legislation does not contain specific provisions regarding baseline marketing and distribution activities. However, if a taxpayer resident in a covered jurisdiction listed by the OECD as applying the approach (Amount B), and Slovenia has a Double Tax Convention with that jurisdiction, Slovenia would consider this approach.
Special Topics
Rules on Transfer Prices (Section 6a, Article 22a)
Rules on Transfer Prices in Section 6a, Article 22a provide for general guidance relating to intangibles in controlled transactions. It follows the guidance in Chapter VI of the TPG.
Tax administration’s booklet: Transferne cene (page 25 point 2.4.1.)
Slovenia does not have specific provisions addressing Hard-to-Value Intangibles (HTVI). However, its general transfer pricing rules require transactions to be priced at arm’s length, and the OECD Transfer Pricing Guidelines are applied as an indicative reference. In practice, the HTVI approach may be considered, particularly in cases involving valuation uncertainty. This practical aspect is also acknowledged in a booklet published on the tax administration’s website.
Rules on Transfer Prices (Section 6, Article 22)
Rules on transfer prices in Section 6, Article 22 provide general guidance relating to intra-group service transactions. It follows the guidance in Chapter VII of the TPG.
Corporate Income Tax Act (Slovene), Article 16, Article 19; Rules on Transfer Prices
Regarding the transfer pricing of financial transactions, the general guidance set out in CITA-2 and the Rules on Transfer Pricing applies. Additionally, Article 19 of CITA-2 introduces a provision for determining the tax-recognized interest rate, which may be regarded as a “safe harbour rule” for transfer pricing purposes. It follows the guidance in Chapter X of the TPG.
Full OECD Questionnaire
Legal ReferenceThe Corporate Income Tax Act, Article 16 (in Slovene language) and the Rules on Transfer Prices (in Slovene language)
The arm’s length principle is incorporated in the Corporate Income Tax Act (hereinafter: CITA-2) in Article 16. Further implementation of the OECD Transfer Pricing Guidelines (hereinafter: TPG) is to be found in the Rules on Transfer Prices.
Legal ReferenceDecision of Supreme Court X Ips 1138/2006 Decision of Supreme Court X Ips 452/2014
The TPG is used as a practical tool by the taxpayer and by the tax administration to determine the arm’s length remuneration based on the CITA-2 and the Rules on Transfer Prices. The Supreme Court in its the decision X Ips 1138/2006 (point 15) as well as in decision X Ips 452/2014 (point 10) indicated that TPG is used as an interpretative or indicative tool in the assessment of transfer pricing within the CITA-2.
Legal ReferenceCorporate Income Tax Act (in Slovene), Article 16 (1) CITA-2
The definition of an associated enterprise is provided for in the Corporate Income Tax Act in Article 16(1). An associated enterprise shall be a taxpayer – resident or non-resident - and a foreign legal entity or a foreign person without legal personality who is not a taxpayer (hereinafter: foreign person), when: 1. The taxpayer directly or indirectly holds at least 25% of the value or number of shares or equity holdings... 2. The foreign person directly or indirectly holds at least 25%... 3. The same person at the same time directly or indirectly holds at least 25%... 4. The same individuals or their family members directly or indirectly hold at least 25%...
Legal ReferenceCorporate Income Tax Act (in Slovene), Article 16(5); Rules on Transfer Prices (Section 1, Articles 1a to 6)
The transfer pricing methods to be used in respect of transactions between related parties are determined in the CITA-2, in Article 16(5) and further explained in the Rules on Transfer Prices (Section 1, Articles 1a to 6). The combination of methods is also permitted.
- CUP (provided)
- Resale Price (provided)
- Cost Plus (provided)
- TNMM (provided)
- Profit Split (provided)
- Other (not provided)
Legal ReferenceRules on Transfer Prices (Section 1, Article 1a)
The application of transfer pricing methods is provided for in the Rules on transfer prices in Section 1, Article 1a.
- Hierarchy of methods (not selected)
- Most appropriate method (selected)
- Other (not selected)
Legal ReferenceRules on Transfer Prices; Tax administration’s booklet: Transferne cene (page 12, point 2.2.1)
For controlled transactions involving commodities, the guidance contained in paragraphs 2.18-2.22 of the TPG is followed. The Rules on Transfer Pricing provide a general overview of the application of the CUP method (no specificities are included). However, it should be noted that in the booklet published on the tax administration’s website addressing more practical issues of determining the arm’s length price (ALP), a paragraph explaining the use of “quoted prices” under CUP method is included.
Legal ReferenceRules on Transfer Prices (Section 1 to 5, Article 1a to 21)
The Rules on Transfer Prices in Sections 1 to 5, Articles 1a to 21, give a general outline of the guidance on comparability analysis.
Legal ReferenceRules on Transfer Prices (Section 1 to 5, Article 1a to 21)
If domestic comparables are available, then there is a preference to use them. However, due to the small size of the Slovenian market domestic comparables are very rarely available.
Legal ReferenceRules on Transfer Prices (Section 1 to 5, Article 1a to 21)
Legal ReferenceRules on Transfer Prices (Section 5, Article 21)
Rules on Transfer Prices in Section 5, Article 21 provide for the use of the arm’s length range in determining the arm’s length remuneration. In general, the rule states that if there are highly reliable figures in a range the arm’s length price is determined by the figure in the range that best reflects the facts and circumstances of the transaction. However, if figures in a range are not reliable, the interquartile range and the median are used for determining the arm’s length price.
Legal ReferenceRules on Transfer Prices (Section 2, Article 9)
Rules on Transfer Prices in Section 2, Article 9 provide for general rules regarding comparability analyses. In general, comparability adjustments are required if differences materially affect the comparison or to increase the reliability of the results.
Legal ReferenceRules on Transfer Prices (Section 6a, Article 22a)
Rules on Transfer Prices in Section 6a, Article 22a provide for general guidance relating to intangibles in controlled transactions. It follows the guidance in Chapter VI of the TPG.
Legal ReferenceTax administration’s booklet: Transferne cene (page 25 point 2.4.1.)
Slovenia does not have specific provisions addressing Hard-to-Value Intangibles (HTVI). However, its general transfer pricing rules require transactions to be priced at arm’s length, and the OECD Transfer Pricing Guidelines are applied as an indicative reference. In practice, the HTVI approach may be considered, particularly in cases involving valuation uncertainty. This practical aspect is also acknowledged in a booklet published on the tax administration’s website.
Legal ReferenceTax administration’s booklet: Transferne cene (page 25 point 2.4.1.)
Slovenia does not have specific provisions addressing HTVI. However, its general transfer pricing rules require transactions to be priced at arm’s length, and the OECD Transfer Pricing Guidelines are applied as an indicative reference. In practice, the HTVI approach may be considered, particularly in cases involving valuation uncertainty. This practical aspect is also acknowledged in a booklet published on the tax administration’s website, which aims to raise awareness and provide guidance on the treatment of such transactions.
No.
Legal ReferenceTax Procedure Act (Chapter 7: Discharge of Tax Obligation, Subchapter 5: Statute of Limitations: Articles 125 to 126.a)
No specific rules regarding the statute of limitations apply to transactions within the scope of the HTVI approach. General provisions governing the statute of limitations are applicable as set out in the Tax Procedure Act. The relative statute of limitations is five years, and the absolute statute of limitations is ten years from the date the taxable event occurred.
Legal ReferenceTax Procedure Act (Articles 14.a to 14.g)
Taxpayers may request a bilateral or multilateral advance pricing agreement for any controlled transaction, regardless of its nature.
Personnel at the tax administration who handle transfer pricing matters receive general training in the transfer pricing field, which also includes instruction on hard-to-value intangibles. The training is delivered in the format of seminars, workshops, and informative brochures.
There are no specific domestic rules governing the application of adjustments under the HTVI approach. For further details regarding the statute of limitations, please refer to the response provided under Question No. 17.
See answer under No. 20.
It depends on facts and circumstances of each individual case.
Legal ReferenceRules on Transfer Prices (Section 6, Article 22)
Rules on transfer prices in Section 6, Article 22 provide general guidance relating to intra-group service transactions. It follows the guidance in Chapter VII of the TPG.
Legal ReferenceTax administration’s booklet: Transferne cene Point 2.5.1. (p.29)
In 2020, a section addressing low value-adding intra-group services was added to the booklet published on the tax administration’s website. This section explains the practical treatment of such services and aims to raise awareness of their relevance (see point 2.5.1 in the booklet). It follows the approach in Chapter VII.
Legal ReferenceCorporate Income Tax Act (Slovene), Article 16, Article 19; Rules on Transfer Prices
Regarding the transfer pricing of financial transactions, the general guidance set out in CITA-2 and the Rules on Transfer Pricing applies. Additionally, Article 19 of CITA-2 introduces a provision for determining the tax-recognized interest rate, which may be regarded as a “safe harbour rule” for transfer pricing purposes. It follows the guidance in Chapter X of the TPG.
Legal ReferenceCorporate Income Tax Act (Slovene), Article 54.c
Starting in 2024, the CITA-2 introduced an interest limitation rule based on EBITDA, replacing the previous thin capitalization rule (ratio debt-to-equity 4:1). Under this new provision, the amount of interest that can be deducted for tax purposes in transactions between related entities is limited to the higher amount of EUR 3 million or 30% of EBITDA. The measure is aligned with the Council Directive (EU) 2016/1164 (ATAD Directive) and is comparable to the approach outlined in BEPS Action 4.
Legal ReferenceRules on Transfer Prices (Section 7, Article 23)
Rules on transfer prices in Section 7, Article 23 provide general guidance relating to Cost Contribution Arrangements. It follows the guidance in Chapter VIII of the TPG.
Legal ReferenceTax Procedure Act (in Slovene) in Article 382 (TP documentation) and Articles 248b, 255i, 255j, 255k, 255l, and 397 (CbCR reporting & exchange); Rules on the Implementation of the Tax Procedure Act (in Slovene); Section 6 Articles 86.c to 86 g. and Annex 21 (CbCR reporting & exchange); Rules on the Corporate Income Tax Return (in Slovene), Annex 15 & Annex 16; Tax administration’s booklet: Transferne cene Point 2.1 (p.8-11)
The concept of the Master File and Local File, which together constitute transfer pricing documentation, was introduced into Slovene tax law in 2006. Article 382 of the Tax Procedure Act outlines the requirements. The Country-by-Country (CbC) Report was incorporated in 2016. Filing requirements are aligned with BEPS Action 13.
- Master file consistent with Annex I to Chapter V of the TPG (selected)
- Local file consistent with Annex II to Chapter V of the TPG (selected)
- Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
- Specific transfer pricing returns (separate or annexed to the tax return) (selected)
- Other (specify) (not selected)
Legal ReferenceTax Procedure Act (in Slovene), Article 382 (TP documentation) and Articles 248b, 255i, 255j, 255k, 255l, and 397 (CbCR reporting & exchange); Rules on the Implementation of the Tax Procedure Act (in Slovene); Section 6 Articles 86.c to 86 g. and Annex 21 (CbCR reporting & exchange)
Taxpayers are required to prepare the Master File and Local File in advance of controlled transactions and make them available upon request during a tax audit. Submission deadline is usually 30 to 90 days if not immediate. Documentation may be in a foreign language, but a Slovene translation must be provided if requested. CbCR filing is consistent with BEPS Action 13.
Legal ReferenceTax Procedure Act (in Slovene), Part 6. Articles 394 to 402.a
There are no specific compliance incentives or penalties directly associated with transfer pricing documentation. General penalties for non-compliance with tax obligations—such as incorrect assessment or failure to pay tax—apply.
Legal ReferenceRules on the Corporate Income Tax Return (in Slovene), Annex 15 & Annex 16
Transactions with an individual related party whose cumulative annual turnover does not exceed EUR 50,000 are exempt from reporting in the tax return.
Legal ReferenceSlovenia’s MAP Profile
Mechanisms include Enhanced engagement or cooperative compliance programmes, Advance Pricing Agreements (Unilateral, Bilateral, Multilateral), and Mutual Agreement Procedures.
- Rulings (not selected)
- Enhanced engagement or cooperative compliance programmes (selected)
- Advance Pricing Agreements (APA) (selected)
- Mutual Agreement Procedures (selected)
- International Compliance Assurance Programme (ICAP) (not selected)
Slovenia’s domestic legislation does not contain specific provisions regarding baseline marketing and distribution activities. However, if a taxpayer resident in a covered jurisdiction listed by the OECD as applying the approach (Amount B), and Slovenia has a Double Tax Convention with that jurisdiction, Slovenia would consider this approach.
Legal ReferenceRules on the tax-recognized interest rate (in Slovene: Pravilnik o priznani obrestni meri)
Article 19 of CITA-2 introduces a provision for determining the tax-recognized interest rate, which may be regarded as a “safe harbour rule” for transfer pricing purposes. In calculating this rate, the officially published risk-free interest rate for a currency is considered, along with mark-ups reflecting maturity and creditworthiness of the borrower.
Legal ReferenceRules on the Corporate Income Tax Return (in Slovene), Annex 1 point 3.1, 3.3., 6.2 and 6.4
Generally, the taxpayer can adjust the transfer price in the tax return. However, this adjustment is limited to upward changes. Downward adjustments of the transfer price are usually dealt with within the mutual agreement procedure (MAP).
Legal ReferenceRules on the Corporate Income Tax Return (in Slovene), Annex 1 point 3.1, 3.3., 6.2 and 6.4
Generally, the taxpayer can adjust the transfer price in the tax return. Year-end adjustments are allowed.
Legal ReferenceCorporate Income Tax Act (Slovene) (Articles 70 and 74)
The transfer pricing adjustment is being treated as hidden profit distribution and as such taxed with a 15 % withholding tax. In case of a Double Tax Convention a lower rate is applicable.
Slovenia has included a new version of Article 7 (OECD MTC 2010) or its equivalent in a few very recent tax treaties. The majority of treaties contain Article 7 as it read before 2010.
- Article 7 as it read before 2010 (selected)
- Article 7 as it reads after 2010 (selected)
Where the tax treaty contains the old version of Article 7 (OECD MTC 2008) or its equivalent, the provisions of such Article or its equivalent apply.
Legal ReferenceCorporate Income Tax Act (Slovene) (Article 12)
In accordance with CITA-2, the determination of the tax base for a permanent establishment is governed by Article 12. This profit is determined by taking into account the revenues and expenses that could reasonably be expected if the permanent establishment were an independent entity conducting the same or similar activities or transactions. It follows the AOA as described in the 2008 and 2010 Reports.
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