Slovenia: Domestic Corporate Taxes

On this Page:

- SLOVENIA SCOPE OF INCOME TAX
- SLOVENIA INCOME TAX RATES
- SLOVENIA CALCULATION OF TAXABLE BASE
- SLOVENIA FILING REQUIREMENTS AND PAYMENT OF TAX
- SLOVENIA WITHHOLDING TAXES
- SLOVENIA SALES TAXES AND VAT

Slovenia Scope of Income Tax

A legal entity that is resident in Slovenia is liable for corporate income tax on worldwide income. A non-resident legal entity in Slovenia is liable for tax on income from business activities carried out within Slovenia. Organisations that are exempt from corporate income tax include associations, foundations, political parties and trade unions.

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Slovenia Income Tax Rates

The corporate income tax rate in Slovenia is 20%. A special 0% tax rate applies to investment funds, pension funds and, subject to legal requirements being met, venture capital companies.

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Slovenia Calculation of Taxable Base

The tax base is calculated on the surplus of revenue less expenses or costs recognised as necessary for generating income. These include direct costs (such as labour and cost of manufacturing). Up to 50% of indirect expenses (such as entertainment and corporate hospitality) are deductible.

Depreciation by the straight-line method is permitted. Depreciation rates vary from 10% to 50%; hardware and software is allowed at the highest rate of 50%.

A loss from a previous tax period may be carried forward and offset against the tax base for the following year. There is no restriction on time limit for carrying forward such losses.

Slovenia Filing Requirements and Payment of Tax

The tax year in Slovenia may be any 12-month period, including the calendar year, but if it is not the calendar year then the tax period may not be changed for three years. Consolidated returns are not permitted – each company must file its own tax return.

Taxation is on a self-assessment basis. Payments are normally made in advance on a monthly or quarterly basis. Returns are due to be submitted within three months of the end of the tax period in question. Penalties of between EUR1,600 and EUR25,000 can be imposed for failure to submit a tax return or if the return does not comply with legal requirements.

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Slovenia Withholding Taxes

Dividends, royalties and interest paid to non-residents are subject to 15% withholding tax. The rate can be reduced where a tax treaty or other EC exemption applies. Withholding taxes also apply to property rental income and payments made to professional entertainers and sports people, whether resident or non-resident in Slovenia.

Slovenia Sales Taxes and VAT

A person must register for VAT if the value of taxable supplies exceeds EUR25,000 during the previous 12 months (EUR7,500 if agricultural). The standard rate of VAT in Slovenia is 20%. A reduced rate of 8.5% is applicable for food, water supply, medicines and specific medical appliances, public transport, books and certain entertainment tickets. Some transactions are exempt from VAT, including insurance, some tourist services, property leasing and certain financial transactions.

Any legal entity carrying out business where the supply of goods or services is subject to VAT must acquire a VAT identification number before commencing business activities. VAT returns must be submitted monthly and must be paid by the last working day of the month following the taxable period.

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