Income taxes

Last reviewed 18 Apr 2024

Tax rate

Unfortunately, mechanism preventing a cold progression have been suspended in Slovenia.

Special tax rates

Within fixed limits, a 20% income tax rate is to be applied within the scope of lump-sum taxation of commercial income. Furthermore, there are fixed tax rates for certain types of income (interest, dividends, speculative gains).

Tax liability

Unlimited

Unlimited liability on worldwide income (except where DTA restricts the right to assess tax):
Natural persons with their residence or ordinary residence in Slovenia

Limited

Limited liability on certain income in Slovenia:

• Natural persons who have neither their residence nor their habitual abode in Slovenia, on certain Slovenian income.
• Natural persons who are foreigners and resident in Slovenia, on Slovenian income from employment.

Tax assessment period

Calendar year

Income categories

Income from

1. Employment
2. Self-employment (trade or profession)
3. Agriculture and forestry
4. Property (rental and leasing, income from copyright)
5. Income from capital (speculative gains, interest and dividends)
6. Other income

Accounting

As a rule, double-entry bookkeeping is prescribed. Sole proprietorships are not required to use doubly-entry bookkeeping if two of the following criteria are met:

• Less than 3 employees on an average
• Sales below EUR 50,000
• Total assets below EUR 25,000

Even with single-entry bookkeeping (cash basis accounting) records of trade receivables and trade payables must be kept for tax purposes.

At the year end an income statement and balance sheet must be prepared.

Loss set-offs

“Horizontal” set-off (within individual income categories) is possible.

“Vertical” set-off (between individual income categories) is possible subject to restrictions (e.g. no vertical set-off in the case of speculative gains, other income or income from renting).

Loss carryback

no loss carryback

Loss carryforward

Losses on self-employment (trade or profession) can be carried forward without time limit.

Tax losses carried forward from previous years can be utilized up to 50 % of the tax base.

Operating expenses

Necessary expenses of the business

Tax allowable expenses

Expenses incurred to procure, secure or maintain taxable income: there are numerous exceptions in all the income categories. There is no uniform definition for business expenses for the non-business income categories.

Lump sum option

The Slovenian Income Tax Act provides for a lump-sum deduction for expenses. The amount of the lump-sum deduction for expenses depends on several circumstances and is limited in absolute terms to EUR 60,000. No other expenses can be claimed in addition to the flat-rate deduction for expenses.

Motor vehicles

Depreciation over at least 5 years

Benefits in kind are calculated on the basis of acquisition costs including VAT.

Deduction of actual costs or mileage allowance. At present the official allowance is 43 cents/kilometre.

No deduction of input VAT

No non-monetary remuneration is due for electric vehicles.

For electric vehicles with purchase price under EUR 80,000 with included VAT, the VAT is deductible. For private use of electric vehicle the VAT for each kilometre has to be calculated if deducted by purchase.

Social insurance

There are no maximum contribution bases for income from employment.
The maximum contribution base for self-employed persons changes annually. For 2024, the maximum contribution base is EUR 7,773.33.

Withholding tax

In the case of persons with limited liability to taxation, withholding tax is generally 15 %. A DTA can provide for a lower rate of taxation, and relief is by refund or reduction at source.

Interest

15 %, or applicable DTA

Royalties

15 %, or applicable DTA

Dividends

15 %, or applicable DTA