Taxes in Slovenia are an important element in the decision-making process for entrepreneurs who start their business in Europe. In today’s article we will be covering the taxes which you can expect in Slovenia, both for companies as well as for individuals.
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Value Added Tax (VAT)
The most common taxes in Slovenia are sales taxes. Here, we can include the value added tax (VAT). You pay VAT with every purchase of goods and services within Slovenia. There are some exceptions, like when buying goods or services from a »small« VAT payer or a VAT non-payer. You would also pay VAT in other EU member states if your company does not have a valid ID number for VAT in Slovenia. In Slovenia, we have three rates of VAT: 5% (books, literature, newspapers, musical works), 9,5% (food, drinks, medicine, medical equipment, transport of passengers, entrance ticket, art work, animals for breeding) and the standard 22% rate (for most other goods and services). You have to send the report for VAT and the VAT payment on the last business days in the month for the previous month or previous quarter.
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Property Transfer Tax (DPN)
The other common tax is the property transfer tax (DPN), which you usually pay with every property transfer of (used) real estate. You pay 2% DPN from the selling price of the real estate. Entrepreneurs often ask how property is taxed, because VAT payers have special conditions, where the buyer and seller can agree on VAT payment. Here, each case has to be evaluated individually as there is no general rule. It is best to entrust the consultation to an experienced advisor. At DATA, we offer professional and experienced tax consultation on all taxes in Slovenia.
Corporate income tax (DDPO)
Companies, branches and other company types pay corporate income tax from their profit or more specific, from their tax base. The rate of corporate income tax is 19% and is the same regardless of the amount of profit the company generated. You would calculate the tax base from the difference between income and expenses. Also, you can decrease your tax based by doing investments, employing staff and paying them salary, development within the company etc.
In Slovenia, you can also calculate your tax base from a basis which you calculate by taking into account normalized expenses in the amount of 80% of the income. Here, the company has to fulfill specific conditions and the tax rate for corporate income tax does not change and remains at 19%. You would have to pay corporate income tax in 30 days after submitting the yearly financial report (which is usually due in March for the previous business year). Also, you are able to pay advance payments of corporate income tax on a monthly or quarterly bases. Also here, the due-date for payment is on the 10th day in a month.
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What about taxation of income from natural persons?
There are also some exceptions, where a company has to pay taxes for natural persons. These include:
- payment of salaries, holiday leave allowance and other income from employment relationship;
- rent, royalties, service contracts, other income of natural persons
- dividends (unpaid profit)
The taxes of natural persons are paid along with the payment of the income.
Are you considering starting a business in Slovenia? DATA can offer full support.
Do not miss the unique opportunity to learn about company registration, fixed assets and business immigration to Slovenia. DATA can offer full support to foreign citizens in the consultation and the company registration. Also, you can contact us for more information. Send us an email to data@data.si. You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.
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