Slovenia: Tax Update 2017

13 March 2017

The following is a summary of amendments applicable as of 01/01/2017.

Change of tax rates in Slovenia

While the rate of corporate income tax is increased to 19 %, a de facto tax reduction occurs in the sphere of personal income tax, due to a flattening of the tax scale. As of 01/01/2017, the personal income tax scale is as follows:

 Annual tax base in Euro

 

 Personal Income Tax / Scale in Euro

 more than

 

 up to

 

 

 

 

 

 

 

 

 8.021,34

 

 

 

 16%

 

 

  8.021,34

 

 20.400,00

 

 1.283,41

+

 27%

 more than

  8.021,34

 20.400,00

 

 48.000,00

 

 4.625,65

+

 34%

 more than

 20.400,00

 48.000,00

 

 70.907,20

 

 14.009,65

+

 39%

 more than

 48.000,00

 70.907,20

 

 

 

 22.943,46

+

 50%

 more than

 70.907,20

Payment of withholding taxes

In the sphere of personal and corporate income tax, a 5-day period was basically introduced for the payment of tax at source and/or withholding tax. Now, only the respective tax return must be filed on the day the condition for withholding tax is met.

Default interest under fiscal law

Since 01/01/2017, fixed annual interest rates in Slovenia have applied to various consequences of default and respite. Interest rates depend on the “cooperation” of the taxpayer with respect to timely settlement of obligations under fiscal law, and range between 2 % and 7 %.

  • 2 % interest rate: e.g. in case of certain stays of levy, respites or deferred payments; in case of legal entities other interest rates are possible
  • 3 % interest rate: e.g. in case of filing a tax return within the scope of voluntary disclosure
  • 5 % interest rate: in case of consent to findings of a company audit in the minutes incl. timely filing of a corrected tax return and timely payment of interest
  • 7 % interest rate: in case a tax liability is found within the scope of a company audit

Treatment of incentive payments

In case of income from employment that is not subject to taxation, new rules were introduced for incentive payments (designated as 13th monthly salary, Christmas remuneration, annual bonus etc.)

The incentive payment disbursed once a year is exempt from tax up to an amount of 70 % of the average salary in Slovenia (average salary currently EUR 1,540.25), but is subject to social insurance contributions. Any incentive payments beyond that amount are taxable.

The incentive payment must be regulated in an internal document or in the collective bargaining agreement, and may also be paid by foreign employers.

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