Slovenia
Corporate taxes and other direct taxes
Temporary increase of CIT rate (1.1. 2024 until 31.12. 2028) to 22% (before 19%). The tax base is the accounting profit modified by increases & decreases.
Losses can be carried forward without limitations & can be used only up to 50% of the tax base. Special rules apply in case of M&A transactions. Tax allowances are available for new investments, R&D, new employments, the employment of disabled persons, donations & voluntary supplementary pension insurance. From 2022 a new tax allowance for investment in the digital & green transition was introduced. Provisions governing the GAAR & CFC as a part of the EU ATAD I are applicable from 2019.
Slovenia uses thin capitalization (4:1), but doesn't apply if shareholders are financial institutions & the taxpayer provides evidence of such possible loan surplus from a lender that is a non-associated enterprise.
The amendments to CIT Act (effective from 2024), further restrict business between related companies (in line with the interest limit in the ATAD Directive). The amendments regulate the rule on recognition of interest for tax purposes (i.e. EBITDA rule). The limitation regulates deductubility of interest for tax purposes for loans between related companies (recognized as an income up to higher of (1) 30% of taxpayer's EBITDA, (2) EUR 1 mio).
In addition, the amendments relate to provisions concerning the determination of a non-resident's PE & non resident's place of business not determined as PE. The most significant change relates to provisions governing the place of business of a non-resident that is considered PE, as they do not apply to a place of business used or maintained by a non-resident who is closely related to another non-resident or resident & if that person carries out business activities at the same or another place in Slovenia & those business activities are part of an overall business.
Withholding tax of 15% is applied on dividends, interest, royalties and rental income paid by a Slovenian company to a foreign company. However, if conditions are met, an exemption (or decrease in the percentage of withholding tax) is applicable to payments to EU residents (under the Parent Subsidiary Directive & the interest and royalty directive or under local WHT exemption), and under international Double Taxation Treaties (there are currently over 60 treaties).
- Real estate transfer tax (RETT) is applied on the transfer of immovable property at the rate of 2% if transaction is not subject to VAT where the tax base is selling price.
- DAC7 obligatory reporting from period 2023 onwards - with first reporting due date on 31 January 2024.
- On 13 December 2023, the Minimum Tax Act was adopted. In brief, the new act will introduce an additional tax liability from 2024 onwards for groups whose annual revenue on consolidated level in at least two of the last four financial years amounts to 750 million EUR or more.
| Transfer pricing in Slovenia |
| Arm's length principle |
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Since 2005 in Article 16 of the Slovene Corporate Income
Tax Act (CITA) |
| Documentation liability |
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Slovene Ministry of Finance issued regulations on TP on January 1, 2007 |
| APA |
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Available |
| Country-by-Country liability |
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Since 2016
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| Master file-local file (OECD BEPS 13) applicable |
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Since 2006 |
| Penalty |
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| - lack of documentation |
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Penalty is EUR 1,200 to EUR 30,000 depending of the size of the legal entity and up to EUR 4,000 for the responsible person.
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| - tax shortage |
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'30% of underpaid tax for micro and small legal entities (underpaid tax from EUR 1,500 to EUR 150,000). 45% of underpaid tax for medium and large companies (underpaid tax from EUR 2,000 to EUR 300,000). Responsible representative up to EUR 5,000.
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| Related parties |
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- |
| Safe harbors |
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'- Administratively determined recognized interest rate for all loans between RPs.
- For interest rates in line with the government regulations the thin cap 1:4 ratio applies.
- The rule limiting the recognition of interest for tax purposes for loans between RPs within a group (new in 2024 EBITDA rule)
- Safe harbor rule applicable between domestic RPs, only if RPs involved in domestic IC transactions are in different tax positions.
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Level of attention paid by Tax Authority:
VAT and other indirect taxes
The general tax rate is 22%; a reduced rate of 9.5% applies to some goods, e.g. foodstuffs, water supply, carriage of passengers and their personal luggage, and a reduced rate of 5% applies to books and newspapers, regardless of whether they are delivered on physical media or electronic forms. VAT-exempt services include services of public interest, as well as banking services, insurance, investment-related services, gambling, certain services provided by medical doctors and dentists, etc. EC Sales lists (IC report) are obligatory in Slovenia and should be submitted by the 20th day of the month following the taxable period. For cross-border sales to consumers, a threshold of EUR 10,000 is applied in Slovenia. Electronically supplied services to consumers worth less than EUR 10,000 are subject to Slovenian VAT rules. From 2019, Slovenia incorporated the requirements of the EU Vouchers Directive (Directive 2016/1065) into domestic law.
Other indirect tax types in Slovenia include excise duty, insurance tax, tax on financial services, motor vehicle tax, customs, etc.
CBAM (Carbon Border Adjustment Mechanism) reporting is also newly introduced. The first mandatory reporting period was for Q4 2023 with a due date of January 31, 2024 and with future quarterly reporting in the transitional period until December 31 2024; the full effective date of implementation is 2026.
Personal income tax / Social security system
Personal income tax rates are progressive (16%, 26%, 33%, 39%, and 50%), and apply on active income sources (employment, business income, agriculture and forestry, other income). Capital and rental income is taxed at a flat rate (dividends at 25%, interest at 25%, capital gains from 0% to 25%), depending on the holding period; rental income is taxed at 25% (10% lump sum costs or actual costs deductible).
Social security contributions are applicable on income from employment and are 16.10% for the employer and 22.10% for the employee. From January 2024 onwards there is also a separate flat EUR 35 monthly fee for mandatory medical insurance. Self-employed individuals (business income) pay their own social security contributions depending on the circumstances of the case. The examples below show the cost of the employer and the employee in case of the minimum wage level and the average wage in the private sector. There are a number of personal allowances that apply individually depending on the personal status of the individual.
Wage related taxes
in Slovenia |
Minimum wage |
Average wage in private sector |
| |
in EUR |
|
in EUR |
|
| |
1253,9 |
|
2348,32 |
|
| Total wage cost |
1,456 |
116.10% |
2,726 |
116.10% |
| Employer's contribution** |
202 |
16.10% |
378 |
16.10% |
| Gross salary |
1,254 |
100.00% |
2,348 |
100,00% |
| Employees' contributions** |
312 |
22.1% + EUR 35 |
554 |
22.1% + EUR 35 |
| Tax and surtax* |
84 |
6.70% |
285 |
12.15% |
| Net salary |
858 |
68.43% |
1,509 |
64.26% |
*Tax base differs from the gross salary, deductions apply.
**In the case of a minimum wage, a higher calculation base must be used to calculate social security contributions.
***Latest avaible information about avarage wage in private sector is December 2023. In 2024 we should expect the drop in avarage net salary due to the new EUR 35 monthly flat fee for mandatory medical insurance.