General managers

Last reviewed 18 Apr 2024

Civil law

Contract of employment, service contract, contract for services, etc.

Social insurance

Even where there is a contract of employment, general managers are treated in the same way as self-employed persons for purposes of social in- surance (change of the contribution base without changing the social insurance contribution).

To the extent that general managers are also compensated in other ways (e.g. service contract, directors’ fees) and are also employees (of another company), a pension insurance of 8.85 %, an accident insurance of 0.53 %, and a health insurance of 6.36 % are payable.

Income tax

Persons acting with representative authority on behalf of the company are always treated as employees, irrespective of the nature of their compensation. Where such persons are foreigners, and depending on the applicable double taxation agreement (DTA), an overall tax rate of 25 % can be achieved (exemption with progression may need to be taken into account in the country of residence).

VAT

Employees: no VAT

Self employed: VAT

Work permit

Work permits for third country nationals:

For self-employed persons no work permit is necessary

Residence permit / Settlement permit

Automatic right of residence and settlement for all EU/EEA citizens.

EU citizens self employed or in employment in Slovenia are subject to registration requirements.

Liability

Delay in declaring insolvency: in addition to the company, as a general rule the general manager is also liable for penalties for financial offences.

Minimum remuneration

No provision for minimum remuneration; for remuneration of general managers no statutorily binding standards apply. In case of an employment contract, however, the legal minimum compensation of EUR 1,253,90 must be observed.