Income tax for LTD company in Slovenia based on normalized expenses

Income tax for LTD company in Slovenia based on normalized expenses

Corporate income tax in Slovenia for legal entities is 19%. The company pays it if it has profit by the end of the business year. But in some cases LTD companies can also use normalized expenses to pay income tax. In this article we would be explaining the conditions.

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Taxation with limited liability company in Slovenia

When registering the company, you would need to decide on the taxation option for your company. It can be on actual expenses or normalized expenses. Normalized expenses are often used with sole traders, but it is also possible for a LTD company to use this taxation base.

If the LTD company uses the taxation base on actual expenses, the rate of corporate income tax is 19%. The company pays tax in case it has profit. Also, the profit calculation happens at the end of the business year. If a company has more income than is has expenses, it pays 19% corporate income tax.

Normalized expenses are suitable for companies with very low or no expenses. Here, 80% of income is written off as expenses. The remaining 20% is used for the base for income tax. This way the company pay 3,8% income tax, regardless of income and expenses. Once you decide on a taxation type, you cannot change it within the same business year.

Conditions for using normalized expenses for paying income tax

You can use this type of income tax structure if your company’s revenues are:

  • up to 50.000€ per year and you have no full-time employees at least 5 months
  • up to 100.000€ per year if you have  a full-time employee for 5 months or more.

Contact DATA for full support with your business in Slovenia!

Experts at DATA will be happy to help with your business and asses the income tax option which is most suitable for you. If you need more information send us an email to [email protected] You can also call us on +386 1 6006 270/+386 1 6006 274, Viber/Whatsapp +386 40 530 718/+386 64 173 023 or skype data.business7.

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