SloveniaTax Obligations Detailed

Employers in Slovenia have various tax obligations related to their employees and business operations. These obligations include corporate income tax, value added tax (VAT), payroll taxes, and other contributions. As of February 5, 2025, the following information is applicable but might change over time.

Corporate Income Tax

The general corporate income tax rate is 19%. Businesses with their head office in another country, but operating in Slovenia, pay this tax on income generated within Slovenia. Tax returns are due by the end of the third month following the end of the tax year. Advance corporate income tax payments are made in monthly or quarterly installments. Monthly payments are required if the prepayment amount surpasses €400 per month, while quarterly installments are suitable if the amount is below this threshold. The final corporate income tax payment is due within 30 days of submitting the tax return.

Value Added Tax (VAT)

The standard VAT rate is 22%, with a reduced rate of 9.5%. Businesses become liable for VAT when their turnover exceeds €50,000 in a 12-month period. Businesses based in EU countries can reclaim Slovenian VAT through their home country's electronic portal following the 8th Directive rules. Claims above €400 are filed quarterly. Non-EU businesses must file bi-annual electronic claims directly with Slovenian authorities, supported by invoices, following the 13th Directive. Slovenia requires reciprocal agreements with non-EU claimant countries.

Payroll Taxes and Social Security

Employers must withhold income tax and social security contributions from employee salaries. Income tax rates are progressive, ranging from 16% to 50%. The general tax relief amount for 2025 is set at €4,500 and is planned to incrementally increase to €7,500. Social security contributions are shared between the employer and employee. The employer contributes approximately 16.1% of the gross salary, while the employee contributes about 22.1%.

The employer's social security contribution breakdown is:

• Pension and Disability Insurance: 8.85%
• Health Insurance: 6.56%
• Unemployment Insurance: 0.06%
• Injury at Work: 0.53%
• Parental Insurance: 0.10%

The employee’s contribution is as follows:

• Pension and Disability Insurance: 15.50%
• Health Insurance: 6.36%
• Unemployment Insurance: 0.14%
• Parental Insurance: 0.10%

Other Taxes and Contributions

A compulsory health insurance contribution of €35 per month applies to employed individuals and self-employed persons whose primary occupation is a trade or profession. This contribution is subject to annual adjustment on March 1st, based on the average gross salary in Slovenia.

For work contracts where an individual is paid based on a single work or service contract, a 25% special tax on the gross amount is payable by the payer.

Employers must submit a monthly report detailing withheld income tax and social security deductions for each employee to the tax authorities (using the REK-1 form) and AJPES (Statistical Office of the Republic of Slovenia). The tax authority remittance is typically due within five days of the salary payment to the employee.

The tax loss carry-forward period is limited to five years. 

In Slovenia, employers are responsible for deducting various taxes from employee salaries, including income tax and social security contributions.

Income Tax

• Progressive Rates: Income tax in Slovenia is progressive, meaning higher earners pay higher percentages. As of 2025, the rates are expected to range from 16% to 50%, distributed across different income brackets.
• General Tax Relief: A general tax relief of €7,500 is available to all taxpayers, reducing the taxable income.
• Additional Allowances: Additional allowances are available for specific circumstances like dependents, disability, and being under 29 and employed. For example, for 2024, those under 29 employed could receive a €1,300 annual allowance.
• Tax Residency: Residents are taxed on worldwide income, while non-residents are taxed only on Slovenian-sourced income. A new allowance starting in 2025 offers a 7% income tax reduction for new tax residents under 40 for up to five years if certain conditions are met.

Social Security Contributions

• Shared Contributions: Both employers and employees contribute to social security.
• Employee Contributions: As of 2024, total employee contributions are 22.1% of gross income, plus a monthly health contribution of €35. This encompasses pension and disability (15.5%), health insurance (6.36%), unemployment (0.14%), parental care (0.10%), and injury at work.
• Employer Contributions: As of 2024, total employer contributions are 16.1% of the employee's gross income, including pension and disability (8.85%), health insurance (6.56%), unemployment (0.06%), injury at work (0.53%), and parental insurance (0.10%).
• Payment: Contributions are withheld by the employer and paid alongside income tax.

Other Deductions and Taxes

• Pre-tax Deductions: These can include contributions to retirement plans and health insurance.
• Post-tax Deductions: These may include additional insurance premiums or other agreed-upon deductions.
• Special Tax for Work Contracts: A 25% tax applies to gross payments for single work or service contracts.
• Mandatory Benefits: Employers must provide certain benefits, such as meal allowances (up to €7.96 per working day), transportation allowance, and a homeworking allowance (up to 2% of monthly salary for employees working from home). Holiday allowance must also be paid, with tax-free minimum and maximum amounts set annually.
• Reporting and Deadlines: Employers must file monthly reports (REK-1 form) detailing withheld taxes and social security contributions to the Tax Authorities and AJPES electronically via the eDavki system. The deadline is typically within five days of the employee's payday.

Additional Information

The information provided reflects the situation as of February 5, 2025, and may be subject to change. It is recommended to consult official government resources or a tax advisor for the most up-to-date and specific guidance on Slovenian tax regulations.

In Slovenia, Value Added Tax (VAT), known as DDV, is levied on most goods and services.

VAT Rates

• Standard Rate: 22% (applies to most goods and services).
• Reduced Rate: 9.5% (applies to essential goods and services like certain food items, water, medicine, passenger transport, books, etc.)
• Super-Reduced Rate: 5% (applies to printed and electronic books and newspapers).
• Zero Rate: 0% (applies to intra-community and international transport, excluding road transport and exports).

As of January 1, 2025, sugary drinks are subject to the standard 22% VAT rate.

VAT Registration

• Threshold: €60,000 annual turnover for businesses established in Slovenia.
• Non-resident Businesses: No threshold; mandatory registration upon starting taxable activities within Slovenia.
• Distance Selling Threshold (EU businesses): €10,000.
• Non-EU Businesses: Require a fiscal representative and must register regardless of turnover.

VAT Filing and Payment

• Filing Frequency: Monthly. Businesses with annual turnover below €210,000 may opt for quarterly filing, except those involved in intra-community transactions or non-residents.
• Return Deadline: Last working day of the following month (or the 20th for businesses submitting an EC Sales List).
• Payment Deadline: Last working day of the following month.

From July 1, 2025, monthly VAT ledger reporting will be mandatory.

VAT Exemptions

Certain goods and services are exempt from VAT. Examples include:

• Education
• Healthcare
• Financial services
• Social welfare
• Letting of immovable property
• International passenger transport

VAT Number Format

• Individuals: 8 digits (Davčna številka)
• Businesses: SI followed by 8 digits (Identifikacijska številka za DDV)

Additional Information

• Slovenia is part of the European Union and follows EU VAT directives. The Financial Administration of the Republic of Slovenia (FURS) manages VAT.
• Non-EU businesses may recover VAT if a reciprocal agreement exists between Slovenia and their country of residence.

Note: This information is current as of February 5, 2025, and is subject to change. Always consult with a tax professional for specific guidance.

Slovenia's tax landscape is evolving, introducing several incentives for businesses and individuals in 2025.

Corporate Tax Incentives

• Digital and Green Transition Investment Allowance: A 40% deduction on investments in digital technologies (like cloud computing, AI, and big data) and green technologies is available, spread over five tax periods following the investment. The total tax relief cannot exceed 63% of the tax base. This incentive applies to investments made after January 1, 2025.
• R&D Allowance: A 100% investment allowance is granted for investments in R&D, claimable up to 63% of the pre-tax profit in the first year, with the remainder deductible over the next five years. Eligible expenses include R&D labor costs, equipment purchases, and R&D service purchases.
• Loss Carry-Forward: Corporate tax loss carry-forward is now limited to five years. A five-year transitional period exists for unused losses from periods before January 1, 2025.
• Interest Deductibility: The thin capitalization rule is abolished. Interest expenses are now limited to 30% of EBITDA or a €3 million threshold.

Personal Income Tax Incentives

• New Tax Resident Allowance: New tax residents under 40 who haven't previously earned income in Slovenia can qualify for a 7% income tax reduction for up to five consecutive years.
• Employee Stock Options and Benefits: New incentives exist for employee stock options, electric car charging, and company bicycles. Details are yet to be defined.

VAT Changes

• VAT Registration Threshold: The threshold is raised to €60,000, with the transitional limit of €66,000 remaining until surpassed.
• E-Invoicing: Mandatory e-invoicing between businesses begins June 1, 2026.
• VAT on Beverages: Beverages with added sugar or sweeteners are now excluded from the lower VAT rate as of January 1, 2025.
• VAT on Vending Machine Sales: Sales from vending machines are generally taxed, except for alcoholic beverages. A lower VAT rate applies only to beverages without added sugar or sweeteners.

Other Tax Incentives

• Employment Incentives: Allowances are available for employing hard-to-place workers and apprentices.
• Voluntary Supplementary Pension Insurance and Donations: Tax relief is provided for contributions to voluntary supplementary pension insurance and charitable donations.

Application Procedures

Specific application procedures for each incentive are available through the Slovenian Tax Authority.

Please note that this information is current as of February 5, 2025, and might be subject to change. It is recommended to consult with a tax advisor for the most up-to-date information and personalized advice.