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Last partiaql update, April 2008
Income Tax Rates
- An individual's income is taxable, as at 2008, at a progressive rate of 16% - 41%.
- Corporate income tax rate in Slovenia is 22% in 2008.
- Companies in special economic zones pay 10% only. The corporate tax rate would be reduced to 21% in 2009, 20% in 2010.
Slovenia Individual Income Tax Rates 2008
| Income (EUR) |
Tax Rates 2008 |
| 1-6,800 |
16% |
| 6,801-13,600 |
27% |
| 13,601 and over |
41% |
Capital Gains
- Capital gains of companies are added to regular income.
- Capital gain tax for individuals is 20%, depending on the holding period before selling, The tax rate is reduced by 5% for each 5 years. For holding period longer than 20 years the tax rate is 0%.
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
- 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
Taxation of Employees
- 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%.
- In Slovenia, an employer is liable for payroll tax for all wages on which national insurance is payable.
- The payroll tax would be abolished from 1.1.2009.
Other deductions
The following payments are subject to a deduction of tax at source:
- Dividend - 15%.
- Interest - 15%
- Royalties -15%.
Comments:
- 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.
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