If you plan on starting a business in Europe, you can consider opening a company in Slovenia. But when you have a company in Slovenia and if that company has employees, you would have to pay them travel expenses for transport to and from the place of work. The labor legislation and tax legislation in Slovenia govern payment of these travel expenses.
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Travel expenses in your company in Slovenia, EU
In addition to paying salary to employees, the company also has to reimburse the employees for travel expenses. You have to record them appropriately. It means that the travel expenses have should be based on a travel order. This order proves business trips of employees and their entitlement for reimbursement within those trips. Usually, travel expenses are reimbursed by payment to the bank account of the employee, with some exceptions.
You can also pay travel expenses to employees untaxed
If the company records the travel expenses appropriately, it can make the payments without tax. But bear in mind that the Slovenian tax office pays close attention to these payments. In order to avoid unnecessary fines, companies have to make sure that they fill out the travel orders correctly and also submit proof of business trips.
Supervision of the tax office for business trip reimbursements
If the Slovenian tax office can make inspections if your company makes correct payments of travel expenses. In case there are inconsistencies, the company can receive the fine twice:
- it has to pay additional corporate income tax,
- it has to make the payment of travel expenses to employees in another form of reimbursement from employment relationship.
In worst cases, the company would have to subsequently pay corporate income tax and all other contributions. Additionally, you can also be charge with paying interest on late payments. It is not excluded that the Slovenian tax office also submits a motion to the magistrate for additional fines.
The burden of proof in the tax procedure is usually on the side of the company. Businesses need to be aware of this and always make sure that they record business trips properly and support them with additional accompanying documents.
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