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What kind of taxes are we paying in Slovenia?
05.01.2009 ob 08:40Taxes and other charges are vital for the normal operation of every country. They are paid by both natural and legal entities from their income as well as from their property. Tax collection is in the public’s interest and tax authorities employ a wide range of different instruments for this purpose.
When accounting taxes, entrepreneurs cannot and must not claim ignorance since the lack of knowledge related to tax law may even prove harmful for them. This is why we are offering a brief overview of the taxes and the tax system in Slovenia below.
• Corporate Income Tax
21% (a 23% tax rate was set for 2007 with the rate gradually reducing by one percentage point each year until 2010 when it will reach 20%; in 2008, this tax was reduced to 22%, for 2009 the tax rate is 21% and in 2010 it will be reduced to 20%)
• Tax Reliefs
20% for investment in internal research and development activities and for the purchase of research and development services; 30% for investment in research and technological development to craftsmen, small business owners and the self-employed.
Tax reliefs for employing certain types of workers
• Tax on the Transfer of Profit Abroad
A 25% tax on profit transferred abroad unless otherwise stipulated in a bilateral agreement; 0% – EU Member States.
• Income Tax
Progressive taxation scale: 16%, 27% and 41%
• Tax on Income from Interest, Dividends and Capital Gains
20% interest
20% dividends
0 – 20% capital gains (the tax rate depends on the period of capital ownership transformation)
• Property Tax
The basis for the property tax is the building value or the value of the area for resting or recreation; the tax is reduced proportionately when certain conditions are met.
• Tax on Trading in Real Estate
2%
• VAT (Value-Added Tax)
20% – the general tax rate
8.5% – the reduced tax rate (charged when buying food, medicine, medical equipment, books, etc.)
• Social Security Contributions
Payable by employers: 16.1%
(the contribution for the pension and disability insurance – 8.85%
+ the health insurance contribution;
• the contribution for diseases and injuries not related to work – 6.56%
• the contribution for occupational injuries and diseases – 0.53%
+ the contribution for parental protection – 0.1%
+ the contribution for employment – 0.06%)
Payable by employees: 22.1%
(the contribution for the pension and disability insurance – 15.5%
+ the health insurance contribution;
• the contribution for diseases and injuries – 6.36%
+ the contribution for parental protection – 0.1%
+ the contribution for employment – 0.14%)
• The Tax on Wages
In 2009, this tax has been completely abolished (in 2008; 0%, 1.1%, 2.3% and 4.4%)
