Tax news - April 2025

Informative Income Tax Calculations for 2024

The Financial Administration has issued the first batch of informative income tax calculations for 2024 and sent them out on March 31, 2025. Taxpayers received them in the first days of April. The second batch of informative income tax calculations for 2024 will be sent out on May 30, 2025.

The deadline for filing an objection to the received informative income tax calculations is April 30, 2025. Taxpayers who have not claimed the special allowance for dependent family members by the time of issuing the informative income tax calculation can do so in their objection.

Taxpayers with an obligation to pay additional income tax must pay it by May 30, 2025. Taxpayers can also pay the tax via eDavki using the ePlačilo button with MasterCard, Visa, Maestro, and Diners Club cards, mobile payment solutions such as Flik, mBills, and VALÚ, or through the Bank@net online banking service. eDavki also offers the option to submit an application for paying the annual income tax assessment in up to three installments.

Excess income tax payments will be refunded to taxpayers' transaction accounts by May 30, 2025.

Payment Services During the Easter Holidays

On Friday, April 18, 2025, European SEPA payment systems and TARGET will not be operational, meaning banks and savings institutions in the euro area will not conduct interbank payment transactions.

Additionally, on Friday, April 18, 2025, the UJP services are expected to be unavailable between 7:00 AM and 11:00 AM due to technological interventions in the information system of Administration of the Republic of Slovenia for the public payments.

Payment of Corporate Income Tax and Income Tax from Business Activities

The deadline for submitting the tax returns for corporate income tax and income tax from business activities was March 31, 2025. If additional tax is due, the taxpayer must pay the difference within 30 days after submitting the return.

In case of overpayment of advance tax installments compared to the tax liability as per the return, the excess advance payments will be refunded to the taxpayer within 30 days after submitting the return.

By submitting a new tax return, the amounts of advance payments for the current period are adjusted. If the advance installments are higher according to the new return, the taxpayer must pay the difference for already due installments with the first subsequent advance installment. If the advance payments are lower according to the new return, the overpaid installments will be refunded within 30 days after submitting the new return.

Access to Foreign Income and Income from Slovenian Payers

On eDavki, it is now possible to view income from abroad and income from Slovenian payers (e.g., salaries, pensions, and similar).

In the coming years, there are also plans to enable access to additional data received from abroad (e.g., financial accounts, income through online platforms, and similar).

VAT on Beauty and Aesthetic Procedures

During inspections of the correctness of operations in the field of beauty and aesthetic procedures, the Financial Administration has found frequent irregularities in VAT calculation. In practice, providers of beauty and aesthetic procedures often do not charge VAT for the services provided, believing that these services are exempt from VAT.

The Financial Administration clarifies that aesthetic surgeries, which are not the result of treatment aimed at maintaining an individual’s health but are due to aging and performed based on the subjective perception of the person undergoing the procedure, are not exempt from VAT.

II. Case Law

Loans Between Legal Entities and Associated Individuals

Shareholders or their associated persons often use loans that are never repaid to covertly distribute profits, which are not taxed in this case.

The latest ruling of the Supreme Court (X Ips 27/2024) states that, in tax proceedings, all circumstances of the concluded transactions must be thoroughly examined, and based on this analysis, it must be determined whether the taxpayer's actions constitute unlawful conduct or a covert distribution of profit, or if it is indeed a genuine loan agreement. Only then can a decision be made regarding the potential taxation of income.

A loan relationship between a legal entity as the lender and an associated individual as the borrower, based solely on an undetermined repayment term (repayment on demand) and a lack of collateral, does not automatically qualify as a taxable distribution to the associated individual, as long as the loan is repaid as agreed, as seen in the case discussed.

The Financial Administration conducts inspections of loans received by shareholders or their associated persons from companies, taking into account case law and evaluating the true nature of the specific loan agreements based on all circumstances.

Administrative Court Confirms Tax Avoidance in the Purchase of Own Shares

The Administrative Court, in the renewed procedure based on the instructions from the Supreme Court’s ruling (X Ips 4/2024), completed the procedure and issued a judgment (No. I U 1720/2024-47) on February 20, 2025. The Administrative Court assessed whether there were reasonable business reasons for the purchase of own shares or if the main purpose of the transactions was simply to achieve a tax advantage.

The Administrative Court defined that the transactions in question were aimed at avoiding the receipt of taxable dividends through the sale of shares in exchange for untaxed consideration, which often did not result in a real change in the economic ownership of the company. In this judgment, the Administrative Court ruled that the taxpayer's main purpose for the purchase of own shares and their withdrawal was tax savings, and therefore, the transactions constituted tax abuse.

III. Other

Tax Information Report

With the adoption of the directive on the disclosure of tax information, a new chapter on "Special Provisions for Certain Companies Regarding the Preparation of Tax Information Reports Relating to Income" has been added to the Companies Act (ZGD-1), specifically Articles 70.e to 70.l. The amendment to ZGD-1 came into effect on December 18, 2024.

According to Article 70.f of ZGD-1, tax information reports regarding income must be prepared by those companies required to prepare a consolidated annual report under Article 56 of ZGD-1, as well as other companies if their income or consolidated income, based on data from the last two consecutive financial years on the balance sheet cut-off date, exceeds EUR 750,000,000, and if one of the following conditions is met:

-       The company operates through its subsidiaries and/or branches in multiple countries (not just in Slovenia), or

-       The company is part of a group, i.e., companies established in the Republic of Slovenia by companies from third countries (countries outside the EU) that constitute the group.

The aforementioned companies must prepare the tax information report related to income and submit it to AJPES for public disclosure within eleven months after the end of the financial year, in accordance with Articles 58 and 70.g of ZGD-1. AJPES will publicly disclose the report before the end of the 12-month period following the end of the financial year. The company must also publish the report on its website. Alternatively, instead of publishing the report directly, the company can publish a notice on its website stating that its tax information report is publicly available on the AJPES website, dedicated to the public release of annual reports.

Reporters will submit certain tax information in a unified electronic format, which will be published at a later date.

Subsidiaries (meeting the criteria for medium or large companies) and branches must submit and publish a tax information report concerning the income of a foreign third-country company (outside the EU) that is required to prepare a consolidated annual report for the largest group of companies in the group. In this case, the same publication obligations apply as mentioned above, except that the report must be submitted in translation if it is not prepared in the Slovenian language.

Group Liability Insurance for Management or Supervisory Board Members

Starting from January 1, 2025, a new method for calculating the bonus amount that is included in the taxable base applies if the employer provides group liability insurance for members of the management or supervisory bodies.

If the employer provides group liability insurance for management or supervisory board members, the bonus amount per employee is 1% of the income from the employment relationship, which is included in the taxable base and received by the employee from the employer in a given month.

If the employee does not receive regular monthly income from employment with the employer, the bonus for each month of inclusion in the insurance is 1% of the income that is included in the taxable base, received by the employee from the employer in a given month. However, this amount cannot be less than 2% of the last known average annual salary of employees in Slovenia, as calculated on a monthly basis, according to the data from the Statistical Office of the Republic of Slovenia.

If the employee does not receive regular monthly income from employment with the employer, the bonus is considered as received when the income is paid, including for all months before the month in which the income is paid, during which no income was paid, or on the last day of the tax year.