If you want to set up a company in Slovenia, this article explains the tax laws for a LLC (DOO) which is the most common company structure in Slovenia.
Slovenia imposes corporate tax on income made offshore in the same way that if it was accrued onshore. The usual approximate tax rate for income remitted, from our research, and your results may vary, is 19%. Slovenia may have certain exemptions to remit offshore income. Taxes are lower than average in Slovenia as the rate which LLC (DOO) will pay tax is 19%. This ranks Slovenia as 66th overall in terms of corporate tax rate worldwide. Certain companies operating in certain sectors such as international shipping may request be taxed under the Tonnage Tax, which ranges from €0.90 to €0.20 per day for 100 net tonnes.
The valued added tax rate is 22.00%, that ranks Slovenia as 162nd when compared to VAT globally. In terms of other taxation, an employer will contribute 16.10% to the equivalent of a social security fund and an employee will contribute 22.10%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 96hours. Contributing to this is the number of yearly labor tax payments, which is 1 in SI.
Thin capitalization rules are in effect. This refers to any sort of laws on companies' debt-to-asset ratios.
Dividends received from a resident company, an EU subsidiary may be 95% tax exempted. The exemption may apply to non-EU subsidiary, provided that is not resident of a black-list jurisdiction and its profits are subject to at least 12.5% income tax. A dividend is distributions of a company profit, decided by the board, to shareholders. Dividends can be one of the following cash payments, shares of stock, or other property.
Capital Gains are considered business income and therefore subject to Corporate Income Tax. However, a 47.5% exemption may apply to capital gains from the disposal of shares, if those shares represent 8% of participation and have been held more than 6 month and at least one person is employed on a full-time basis during this period. The exemption may apply to non-EU shareholdings, provided that is not resident of a black-list jurisdiction and its profits are subject to at least 12.5% income tax. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest withholding tax rate is estimated at 15%. This means that the taxman expects relevant legal entities to pay tax on 15% of payments abroad on interests. The dividends withholding tax rate is 15%. Which means that the taxman expects companies to pay tax on 15% of payments abroad on dividends. The royalties withholding tax rate is 15%. This should be interpreted usually that the tax authorities expects companies to automatically withhold 15% of royalties remitted abroad. Payments to non-residents of EU jurisdictions or jurisdictions that have concluded a tax treaty with Slovenia may be exempted or subject to lower withholding tax rates.
There is no known tax on wealth in Slovenia. There are inheritance and transfer taxes in Slovenia. There is a real property tax applied to certain lands. We are aware of widely used research and development tax relief in this country.
The above is not tax or legal advice for your individual facts and circumstances. We can point you to an accountant in Slovenia who can properly advise you. Contact us today. Click the free consultation button above.
It takes approximately 90 hours to file and prepare documents for a Slovenia Civil Law (German).
The corporate tax is approximately 19% which is 66 in the world.
Owners of a company in Slovenia are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.
The vat rate in Slovenia is 22% which ranks 162 in the world.