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Slovenia: Tax-Efficient Regimes and Sectors |
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Slovenia
Tax-Efficient Business Forms
The
corporate income tax rate of 20% is one of the
lowest in Europe. Generous depreciation allowances
and the ability to carry forward losses are
additional incentives for investors. Foreign
companies may apply for financial assistance
in the form of grants by way of the FDI Cost-sharing
Grant Scheme. In particular, grants are available
for investments in production (industrial),
strategic services, logistics, and research
and development. The criteria to qualify for
a grant stipulate that the minimum investment
is EUR1m and that between 10 and 50 new jobs
are created (10 in R&D). The grant may be
up to 40% of the sum invested. A key proviso
is that the company receiving the grant remains
trading in Slovenia for between three and five
years, depending on the size of the company.
It is possible to carry forward losses in
any one accounting period for seven years,
up to the amount of the tax base for each period.
Reduction
of the taxable base of 20% is allowed for
investment in R&D
establishments and this could rise to as much
as 40% in some instances. Venture capitalists
may well attract a 0% rate if they meet the
legal criteria. New companies may also attract
tax relief of 30% of the amount invested in
equipment and other assets (subject to a maximum
of EUR30,000).
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Slovenia Tax-Privileged Business Sectors
The Economic Zones Act established Economic
Zones in Slovenia, where companies can
benefit from reductions in the corporate income
tax rate. In addition to any grants that
might be available, there are local incentives
whereby further benefits may be obtained; these
include access to special industrial sites
and "holidays" from local taxes.
The Slovenian government will also support
new businesses that hire unemployed Slovenians
and will fund training programmes accordingly.
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