The control test is in line with the Article 7(1) of the EU Anti-Tax Avoidance Directive 2016/1164 (ATAD). The control test for a control foreign company is as follows [ITA Sec. 17h para 1 letter a)]: a corporate taxpayer (tax resident of the Slovak Republic) by itself, or together with its associated enterprises owns directly or indirectly more than 50% of the capital or holds a direct or indirect participation of more than 50% of the voting rights or is entitled to receive more than 50% of the profits of the foreign entity.    Other condition, which has to be fulfilled is a tax rate test, i.e. the corporate tax paid by the controlled foreign company abroad is lower than the difference between the corporate tax of the controlled foreign company calculated under the Slovak Income Tax Act and the corporate tax paid by the controlled foreign company abroad [ITA Sec. 17h para 1 letter b)].    As the controlled foreign company is considered also the permanent establishment [ITA Sec. 17h para 3].    