A company's tax system is governed by the following Acts:
The Corporate Income Tax Act governs income tax matters and imposes a tax on the income of legal entities.
The Value Added Tax Act governs VAT matters and imposes a tax on the estimated market value added to a product or material at each stage of its manufacture or distribution.
The Tax Procedure Act governs:
- the calculation, assessment, payment, repayment, control, and enforcement of a tax.
The Excise Duty Act governs excise duty matters and imposes excise duty on alcohol and alcoholic beverages, tobacco products and energy-generating products and electric power.
Paying tax on the salaries paid out to natural persons is governed by the following Acts:
The Payroll Tax Act imposes a payroll tax on employers (legal and natural entities) who will be liable to pay a tax on the paid out salaries.
The Personal Income Tax Act governs income tax liabilities.
The Special Tax on Certain Benefits Act governs a tax imposed on certain incomes paid out to a natural person.
The tax system consists of three main categories of taxes:
- direct taxes (income tax, payroll tax, special tax on certain benefits, corporate tax, etc.);
- indirect taxes (value added tax, excise duties, etc.);
- property tax (inheritance, gifts, etc.).
Natural persons must pay income tax on income earned through performing various activities. A resident of Slovenia is liable to pay income tax on his/her total income, while a non-resident is liable to pay income tax on that part of his/her income which originates in Slovenia.
Corporate tax must be paid by all legal entities which are engaged in business in Slovenia. A resident of Slovenia is liable to pay tax on his/her total income, while a non-resident is liable to pay corporate tax on that part of his/her income which originates in Slovenia. A taxable person will be deemed to be resident in Slovenia, if he/she meets one or both of the following conditions: he/she has a registered office in Slovenia; or a management board actually carries out its activties on location in Slovenia. A taxable person who does not fulfil either of those two conditions is deemed to be non-resident.
The standard tax rate is 20 %; the exemption is 0 %.
The law regulates the tax reliefs for investments in development and research (internal R&D activities of a taxable person, including the purchase of R&D equipment and services), the employment of disabled persons, the practical work of apprentices or students, supplementary (voluntary) pension insurance and donations.
The payroll tax is imposed on any company which pays out salaries, and the tax base is the gross salary.
Companies are also liable for the payment of social security contributions.
A specific tax on certain benefits is imposed on legal entities and private citizens who conduct business and services designated by law (e.g. contracting work).
Value Added Tax (VAT) is paid by any domestic or foreign individual for each of the following:
- provison of services;
- the acquisition of goods from the EU;
- imports of goods into Slovenia (taxable turnover);
- receiving services from abroad.
The standard tax rate for (VAT) is 22 %, and lower rate is 9.5 %.
Excise duty is paid on certain products (alcohol and alcoholic beverages, tobacco products, energy and electricity to be used as motor fuel or heating fuel), produced in the territory of Slovenia or brought into Slovenia from the territory of the Member States or on products being imported into the European Community.
Entry in the tax register
If you are recorded in the Business Register of Slovenia you must submit information on your activities to the tax administration within eight days of the entry.
The entry in the tax register is done ex officio on the basis of the entry in the Business Register.
You should submit the following forms to the tax administration:
A claim for issuing a VAT identification number must be completed on the form DDV-P2 before the commencement of activities. Foreigners must complete form DDV-P3.
The claim is submitted to the tax authority, where it is entered into the tax register.
If a taxable person subject to VAT offers services electronically, he/she may apply through the VAT web application for electronic rendering of services on the eDavki (eTaxes).
Each individual, who becomes subject to excise duties, must file an application with the customs authorities at least fifteen days before the commencement of production, storage, shipment or import of products subject to excise duty.
The partial payment of direct taxes, such as income tax or corporate tax, may already have been paid during the year, and this is taken into account in the recalculation of the tax due at the end of the financial year. The recalculation should be filed with the Tax Administration at the latest by 31 March of the current year for the previous year.
The payroll tax, specific tax on certain benefits, VAT etc. should be paid by the prescribed deadlines.
The Payroll Tax Act imposes a payroll tax on employers (legal and natural entities) who will be liable to pay a tax on the salaries paid out.
Submission of Tax Return
The Tax Authority communicates with taxable persons electronically, through the eDavki Portal which enables access to various applications for submitting tax returns.
It is also possible to communicate electronically regarding the excise duties . It is first necessary to conclude an agreement on the nature of the business activity, and then a digital certificate for the digital signature may be registered.
Detailed information on taxes and excise duties are also available on the websites of other related organisations, such as the Chamber of Commerce and Industry of Slovenia.