Novelties in Slovenian legislation: Amendments to tax legislation

06 December, 2019

On 6 November 2019, amended tax legislation came into force in Slovenia. Subject to changes are the following four laws: Personal Income Tax Act (ZDoh-2), Corporate Income Tax Act (ZDDPO-2), Law on tax on profit from disposal of derivatives (ZDDOIFI) and Tax Procedure Act (ZDavP-2). The changes will apply as of 1 January 2020.

The personal income tax on capital gains (profits from property disposal, dividends, interests) rate will rise from 25 to 27.5 percent. The same applies to the taxation of profits from disposal of derivatives, as well as the taxation of rental income. For companies, a minimum corporate income tax rate of 7 percent is being introduced as a novelty. On the other hand, the income tax scale was relieved, which means the taxpayers will be subject to lower personal income taxes. Tax procedure was also changed, allowing the tax authority, as one of the qualified beneficiaries, to be able to make entries on its own in the renewed register of non-proprietary liens and confiscated movable property.

One of important changes is also reduction of taxes for use of company electric vehicles. If the employer provides the employee with a private electric motor vehicle for private purposes, the employee's tax base shall be deducted 0,3% (before the amendment 1,5%) of the purchase value of the vehicle per month, if the value at acquisition of the vehicle, including VAT, does not exceed 60,000 EUR.