Personal income tax applies to an individual's income. There are six categories of income: income from employment, business income, income from basic agriculture and forestry, income from rental income and royalties, income from capital (interest, dividends and capital gains) and other income accruing to persons liable to tax in the Republic of Slovenia.
Residents are liable to income tax on their worldwide income (i.e. income derived in Slovenia as well as abroad). Non-residents are liable to income tax on income derived in Slovenia.
Dividends, interest and capital gains are taxed at a flat rate. The tax rate for dividends and interest income is 20%. The tax rate for capital gains depends on the holding period: 20% for a holding period of up to 5 years, 15% for a holding period from 5 to 10 years, 10% for a holding period from 10 to 15 years, 5% for a holding period from 15 to 20 years and a tax exemption for a holding period greater than 20 years. The tax is treated as a final tax for residents and non-residents alike.
The annual active income tax liability of a resident is computed in such a manner that the taxable bases of different sources of income earned in a calendar year are computed separately and then aggregated. The annual taxable base is computed after compulsory social security contributions and certain allowances are deducted. Net active income is taxed according to a progressive tax rate. There are four tax brackets in the annual tax schedule for active income. The progressive tax rates are: 16%, 27%, 41% and 50%. Advance tax payments paid during the tax period are deductible from the final tax liability, and any difference is collected upon receipt of an assessment from the tax authorities. When the total sum of advance payments exceeds the tax payable, a refund is provided.
Income from self-employment is income obtained from performing an entrepreneurial, agricultural, forestry, vocational or any other independent activity.
If the head office of your company is in another country and if you are doing business in Slovenia, you are obliged to pay tax on income sourced in Slovenia.
The tax return for the prepayment of income tax must be submitted to the tax administration office by 31 March of the current year for the previous year at the latest. The document must be submitted in electronic form via the eTax system.
The return does not have to be submitted by those sole traders and private persons who hold the status of a person paying normalised taxes.