Entrepreneurs in Slovenia, new round of economic support awaits!

On 28th March 2020, the Slovenian government was in session in order to accept the new round of economic support for business in Slovenia. They will ease the effects of coronavirus in Slovenia. It will enable entrepreneurs to carry on with their business and also maintain job positions. What kind of support can entrepreneurs in Slovenia expect? We have assessed the content of the measures which will be valid at least until 31st May 2020.

Data d.o.o. has been offering support to entrepreneurs with a business in Europe trough company registration in Slovenia. We offer professional accounting services and tax consultation. Additionally, we also have a specialized legal department that supports entrepreneurs with every aspect of Slovenian business legislation. They can also assist you in implementing the measures that the state offers to entrepreneurs during these extraordinary circumstances. If you need legal advice or advice regarding obtaining funds for business conduct, as well consultation of our tax experts on tax benefits, please or send an inquiry to data@data.si  or call us at +386 1 6006 270 or +386 40 530 718 (Viber/Whatsapp). You can also follow us on Facebook.

What does the proposition for new economic measures include? Which entrepreneurs can expect support?

The government accepted the proposition on the new intervention act. It includes new economic support during the coronavirus outbreak in Slovenia. It includes both entrepreneurs, sole proprietors and natural persons and should be implemented within this week.

What measures did the government include for entrepreneurs with employees?

• co-financing the salary compensation for employees who were waitlisted in companies where they cannot ensure for 30% or more employees. They would cover the full amount of the social contributions for waitlisted employees. Also, they would cover 20% of the NET amount of the compensation for employees,
• the Insurance Office covers all sick leave compensation during the time of the epidemic from the first day onwards,
• A remuneration system for employees engaged in critical activities during the epidemic is being established through a salary allowance for hazardous work and additional workloads (health care, civil protection, critical infrastructure, …) in the range of 10 to 200% of the basic salary allowance.

How does it support companies?

• all pension contributions for those employed in the economy and remain at work, will be paid by the government during the time these measures are valid,
• a warranty scheme will come into place to enable purchase of receivables to enable liquidity,
• freezing the advance payment for corporate income tax and advance payment of income tax for sole proprietors,
• it will shorten the deadline of the payment deadlines to private entrepreneurs from public institutions,
• a part of the unused funds from the European Social Fund (ESS) will be redistributed to help entrepreneurs and institutions engaged in research and development to contain the effects of coronavirus.

What about sole proprietors?

• all sole proprietors who issue a special statement online presenting the inability to work because of the coronavirus effects or a loss of revenue due to the situation, will be eligible for a universal basic income in the amount of 70% of the NET minimal salary,
• sole proprietors, who cannot do business conduct during this time, also do not have to pay social contributions as they will be covered by the state.

What are the benefits which employees can expect in this time?

To ensure a better social standing of people during this time, the government proposed the following measures:

• the rights of employees who cannot work due to force majeure (childcare, inaccessibility of public transport) will become equal to those who are on waitlist,
• employees who lost their jobs due to the epidemic, have the possibility to apply for unemployment benefits from the first day they become unemployed,
• households do not have to pay for the public services which will not be conducted in this time.

During the weekend the government accepted this proposal. Now, it is in the process of implementation through the new intervention act as soon as the parliament confirms it.