calculator, pinned yellow piece of paper that states tax saving on tax changes
5. June, 2024

The first package of proposed tax changes is open for public consultation

The first package of tax changes has been sent for public consultation. The goal of the proposed tax changes is to support the creation of an encouraging environment for developmental personnel, as well as to strengthen the economy further and consequently add value.

What does the package of tax changes entail?

This is a package of tax changes that are expected to be implemented at the beginning of 2025. The prepared measures are included in the amendments to the following laws and regulations:

  • Personal Income Tax Act,
  • Corporate Income Tax Act,
  • Value Added Tax Act,
  • Tax Procedure Act,
  • Mass Real Estate Valuation Act,
  • Tax Certification of Receipts Act, and
  • Regulation on Determining the Amount of Excise Duty on Alcohol and Alcoholic Beverages.

Some of the changes included in the first package:

The first and key part of the package consists of development-oriented measures. The goal is to support activities and employees with higher added value to address the faster gap reduction with countries considered innovation leaders.

The proposal introduces more favorable tax treatment as a reduced income tax of seven percent of the received salary to attract highly qualified personnel for 5 years. This measure will apply to Slovenians who were non-residents of Slovenia due to work or study and gaining experience abroad for at least five years. It will also apply to foreign citizens newly employed in Slovenia who are under 40 years old.

Measures are also proposed to facilitate the rewarding of workers with shares and stakes. They address the challenges of innovative startup companies in rewarding employees and ensuring adequate liquidity in the initial stages of operation.

The second part includes measures to improve the international competitiveness of the Slovenian economy and increase the fairness of the tax system. This includes several measures in the field of value-added tax, extending the period for using allowances for green and digital transitions from one to five years. Additionally, it exempts payments for farming in areas with limited factors for agricultural activity from taxation.

The third part focuses on achieving public health goals by adjusting the taxation of sugary drinks (with added sugar) and energy drinks to the standard 22% VAT rate. Previously, a reduced VAT rate of 9.5% applied to these drinks.

The package of proposed tax changes is published on the eDemocracy platform. The public can submit comments on the proposals until July 3, 2024.