Slovenia Tax 2021

Slovenia Income Tax Rates 2017

• An individual's income is taxable, as at 2017, at a progressive rate of 16% - 50%.
• Business activity is taxed at 20%.
• Passive income is taxed at 25%.
• Corporate income tax rate in Slovenia is 19% in 2017, increased from 17% in 2016.
• Companies in special economic zones pay reduced tax.
• Companies having income less than EUR 50,000/100,000 in previous year can deduct, under certain terms, expenses up to 80% of the annual income without documents.

Slovenia Individual Income Tax Rates 2017

Capital Gains in Slovenia

• Capital gains of companies are added to regular income. When holding at least 8% of the shares sold, 50% of the capital gain is tax exempt subject to certain terms.
• Gains subject to the EU merger directive are tax exempt.
• Capital gain tax for individuals is 25%, depending on the holding period before selling, The tax rate is reduced by 10% for each year after the first five years 5 years and by 5% for the next five years.
  For holding period longer than 20 years the tax rate is 0%.

Slovenia: Overseas Income

• An individual who is resident in Slovenia and a Slovenian company are liable for tax on their income outside Slovenia as well.
• Qualification for residence for an individual: Permanent residence in Slovenia.

Reporting Dates and Payment in Slovenia

• The tax year in Slovenia ends on December 31.
  It is compulsory to file a report and pay advances monthly or once every 3 months.
• An individual is obligated to submit an annual report by March 31.
  Penalties are imposed in the case of a delay in submitting the annual report as well as a fine for each day's delay in payment of the tax due.
• An individual whose entire income is from a salary or whose income as a self-employed individual is less than the amount defined in law, is exempt from submitting an annual report.

Deduction of Tax at Source in Slovenia

• An employer is obligated to deduct tax at source on a monthly basis from a salaried employee and to make additional contributions to social security.
• The employer's contribution to national insurance is 16.1% and that of the employee - 22.1%.

Other Tax deductions in Slovenia

• Dividend - 15%.
• Interest - 15%
• Royalties -15%.
• Technical Fees –15%.

• Deductions at source for payments to foreign residents is subject to the Double Taxation Prevention Treaty.
• In most cases, there is an exemption for deduction at source on a dividend paid to shareholders who are residents of the EU.