Entrepreneurs with a business in Slovenia have been wondering about the possible tax reliefs they can expect due to the coronavirus outbreak. The government of Slovenia will not issue just one measure. We can expect numerous measures to ease the adverse affects to the economy due to the virus. Data d.o.o. has been monitoring the suggestions and we have summarised them in this article.
Experts at Data d.o.o. have been offering support to entrepreneurs who start their business in Europe through company registration in Slovenia for 30 years. In addition to professional accounting services, we also provide legal consultations. Our legal advisors will help you in understanding which tax reliefs your company would be eligible for and also support you in preparing the appropriate documentation.
Tax reliefs for companies in case of serious economic damage
In the event that the company is permanently illiquid or has lost the ability to generate revenue for reasons which they could not influence and is therefore at risk of serious economic damage, the Slovenian Tax Office provides a tax relief of deferral or instalment payment of tax. They grant this relief in order for the entrepreneur to prevent economic damage.
Another tax relief is the instalment payment or deferral of tax with insurance. This benefit provides for a delay of 24 months or a maximum of 24 instalments. In such a case, the criteria for causing serious economic damage must be established. Also, the appropriate collateral must be submitted or allow the entry of liens in the appropriate register.
Tax reliefs for medium and large businesses
In order to do preventative financial restructuring or simplified compulsory settlement, the entrepreneur can decide to take advantage of the tax relief in form of benefit of a periodic payment of tax with up to 60 monthly instalments. This benefit is available only to medium-sized and large enterprises. It is available only upon submission of a final decision on the approved financial restructuring agreement or a decision on approved simplified compulsory settlement. In this case, it is not a question of determining the criterion of serious economic damage.
In such situations, it is also good to reduce your corporate income tax advance payments
A company that anticipates a decrease in revenue for the current year compared to the previous year may submit to the Slovenian tax office a request for a change in the corporate income tax advance payment. The advance is differently determined in the current year based on the average income of the previous year. Thus, it makes the most sense to reduce your monthly or quarterly advance. You can prove the loss of income by referring to cancelled or reduced orders in the comparable period.
The Slovenian government is preparing even more measures through the intervention act which will soon come into force. Our legal department will make sure that you are updated on all current developments and tax reliefs. Also, the Slovenian government is working hard to ease the adverse affects of the situation.