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The taxation system in Slovenia has its own specifics.
The standard VAT rate in Slovenia is 22%. Some goods and services are liable to a reduced VAT rate of 9.5%: food products, drinking water, dietary supplements and medicines, medical equipment, transportation of passengers, services of campsites and hotels, cleaning of windows, etc.
In order to enter the VAT system, the cash inflows from operating activities of a company for the last 12 months should amount to at least 50,000 euros. If you want to join the VAT system in advance, it is necessary to apply to the tax authority of the Republic of Slovenia and provide evidence for future transactions with partners.
Income tax in Slovenia is 19% and shall be paid once a year.
Income tax in Slovenia is progressive. The minimum rate is 16% (for the income of up to 8,021.34 euros per year); the maximum rate is 50% (for the income of 70,907.20 per year).
The annual accounting report in Slovenia shall be filed once per calendar year. The balance shall be prepared and filed until 31 March of the following reporting year.
In accordance with the legislation of Slovenia, the entity has no requirements for the mandatory monthly or annual turnover of funds in the company or the mandatory profit margins. The company must not violate labour laws, regularly pay all the taxes and wages, as well as fulfil the mandatory requirements for the companies’ activities in Slovenia (depending on the type of activity).
Primarily, the company is obliged to timely pay salaries to its employees. The Government controls this issue very tightly. The employer calculates wages based on the minimum wage, which is determined by law and collective agreement.
Minimum wage in Slovenia for a full day (40 hours per week) is 804.96 euros (gross), the average monthly wage in October 2016 amounted to 1,567.99 gross (1,020.40 net)
In Slovenia, the concepts of “gross” and “net” wages are used.
A “gross” wage is the sum of employee’s salary before the deduction of all taxes. This amount is mentioned in the employment contract.
A “net” wage is the amount of salary after deduction of income tax and social insurance contributions. An employee receives this amount to its bank account. In addition, according to the law, the employer shall compensate the employee for travel expenses to the workplace and catering (from 4.3 to 6 euros per day) as well as for the business trip allowance.
Both employers and employees shall pay out the compulsory social contributions. Social security contributions include:
|Name of Contribution||Employer’s Rate, %||Employee’s Rate, %|
|Mandatory health insurance||6.56||6.36|
|Pension and disability insurance||8.85||15.5|
|Occupational injury and disease insurance||0.53||–|
Thus, given a gross wage of 800 euros, the employee will pay € 99.71 of income tax, the social security contributions will make € 176.80, and the net wage will be € 523.49 (+ minimum compensation for meals of € 4.30 per day). The employer’s expenses on wages including the contributions for social insurance and compensation for meals will make around € 1,020.
If you are planning a family reunion, the level of your wage should allow for at least 290 euros per month for each family member. This sum equals to the subsistence minimum in Slovenia.