As per the domestic laws of Slovak Republic, a Permanent Establishment (‘PE’) is defined as:

A place or facility, through which a taxpayer carries out business activities in the Slovak Republic for a duration exceeding 6 months within any 12 consecutive months;
A branch, an office, a workshop, a sales office, technical facility or the place of prospection for and extraction of natural resources;
A building siteor construction and assembly works site if carried on for more than 6 months;
Provision of services by a person, through employees or other personnel engaged by such person, where the duration of the activity exceeds 183 days within any 12 consecutive months; or
An agent performing functions of habitually or repeatedly negotiating and entering into agreements on behalf of the taxpayer

Effective 1 January 2018, the definition of domestic permanent establishment has been expanded to include the recommendations of BEPS Action Plan 7. As per the amended law, the use of a digital platform for the provision of transport and accommodation services will create a permanent establishment in the Slovak Republic. Foreign operators of digital platforms for such services will be required to register a permanent establishment in the Slovak Republic, otherwise, the Slovak tax resident using the platform for the sale of their services must deduct tax from the payments made to the platform for the intermediation services provided. The amendment also introduces new provisions for dependent agent permanent establishment to avoid the misuse of commissionaire structures.

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