Tax news - Februar 2025

Changes in tax legislation

As of January 1, 2025, most of the amendments introduced in the revised versions of the Personal Income Tax Act (ZDoh-2), the Value Added Tax Act (ZDDV-1), and the Corporate Income Tax Act (ZDDPO-2) have come into effect. We provided a detailed overview of these changes in the December edition of the tax newsletter.

I. PERSONAL INCOME TAX AND INCOME FROM ACTIVITIES

Special tax relief for dependent family members for 2024

There are two options for claiming a special tax relief for dependent family members: either on a monthly basis or annually.

Monthly claims reduce the tax base throughout the year, increasing the taxpayer's net monthly income by lowering advance income tax payments. To claim monthly relief, the application must be submitted to the employer or income payer.

The application for annual claims must be submitted no later than February 5, 2025, in paper form or by February 20, 2025, via the eDavki system. The tax authority will use this information to prepare an informative tax calculation, incorporating the tax relief and thereby reducing the tax liability for the previous year.

New scale for income tax, reliefs, and flat-rate contributions for 2025

The Financial Administration of the Republic of Slovenia has published new scale for income tax and reliefs for 2025, applicable to payments made from January 1, 2025, onwards. Additionally, a scale detailing the amounts of flat-rate contributions for health insurance and specific insurance cases for 2025 has been released.

Mandatory health contribution and long-term care contribution

The mandatory health contribution will be adjusted on March 1, 2025 in accordance with the growth of the average gross salary in Slovenia in 2024, based on data from the Statistical Office of the Republic of Slovenia. As of July 1, 2025, a new long-term care contribution of 1% will be introduced, which must be paid by both employees and employers.

 II. MINIMUM WAGE AND INTEREST RATES

New minimum wage amount

The Official Gazette of the Republic of Slovenia, No. 5, published on January 31, 2025, announced the new minimum wage for full-time work, effective from January 1, 2025. The minimum wage has been adjusted by 1.9%, reflecting an increase of EUR 23.82 gross compared to 2024, when it amounted to EUR 1,253.90 gross. The new minimum wage will now be EUR 1,277.72 gross. This adjustment is based on the provisions of the Minimum Wage Act (ZMinP), which requires an annual adjustment at least equivalent to the inflation rate, which was 1.9% in December 2024.

Statutory prescribed late interest rate

The statutory prescribed late interest rate is determined as the European Central Bank's key interest rate plus 8 percentage points.

The prescribed statutory late interest rate applies for a six-month period starting January 1, 2025, and is set at 11.15%.

III. CAPITAL GAINS AND DIVIDENDS

Capital gains, dividends, interest, rental income, and disposals of derivative financial instruments for 2024

For 2024, the deadline for filing tax returns on capital gains, dividends, interest, rental income, and profits from the disposal of derivative financial instruments is February 28, 2025. Returns must be submitted via the eDavki portal or in paper form to the relevant financial office.

Capital gains

Capital gains refer to profits made by individuals from the sale or other disposal of assets, including real estate, securities, shares in companies, and investment coupons. Under the provisions of the Personal Income Tax Act (ZDoh-2), capital gains are subject to a flat income tax rate of 25%. The tax rate is progressively reduced based on the holding period of the asset. If the asset is held for more than five years, the rate decreases to 20%, after ten years to 15%, and after fifteen years, capital gains are no longer subject to taxation.

Dividends

Dividends represent profit distributions from a company to its shareholders and other income derived from ownership interests. Under current tax legislation, dividends are subject to a proportional tax rate of 25%. Taxpayers declaring foreign dividends may claim credit for taxes already paid at the source. Slovenia recognizes foreign tax payments up to the limit specified in its double taxation treaties. In practice;, however, the paying entity may withhold the full tax without considering the treaty provisions. In such cases, the recipient of the dividend may request a refund of overpaid tax in the source country.

Interest

Interest income is derived from loans, deposits, or other types of investments. Interest is taxed at a flat rate of 25%. In Slovenia, interest on bank deposits up to EUR 1,000 is exempt from tax. This exemption applies to interest received from bank deposits held in Slovenian and other EU-based financial institutions.

Rental income

Rental income is income derived from leasing real estate or personal property. Rental income is subject to a flat tax rate of 25%. The taxable base is the total rental income reduced by a standard deduction of 10% for expenses.

Profits from the disposal of derivative financial instruments

According to the Financial Instruments Market Act, financial instruments include derivative financial instruments. The tax rates applicable to gains from the disposal of such instruments are as follows: 40% for holdings of up to one year, 27.5% for holdings between one and five years, 20% for holdings between five and ten years, 15% for holdings between ten and fifteen years, and 10% for holdings between fifteen and twenty years. After twenty years, no tax is levied on gains from financial instruments.

Amendment to the Companies Act (ZGD-1M)

The National Assembly has adopted the amendment to ZDG-1M, which we have already written about in detail in the August issue of our tax news[2]. In brief, the amendment broadens the scope of entities required to report on sustainability and introduces new public reporting requirements for multinational companies. In addition, the amendment introduces incentives for businesses to achieve a more balanced representation of women and men in leadership positions, aligns the criteria for determining company size due to the effects of inflation in recent years, mandates the labeling of companies and sole proprietors at visible locations on business addresses, and also changes the definition of a public interest entity.

Introduction of the new Standard Classification of Activities (SKD 2025)

As of January 1, 2025, the new version of the Standard Classification of Activities (SKD 2025) has replaced the previously valid SKD 2008. The new classification is more detailed and introduces significant changes to activity codes.Businesses that have activities specified in their founding documents will need to align them with SKD 2025 upon the next amendment to their founding act.

Intrastat updates for 2025

This year, the reporting threshold for Intrastat declarations on goods receipts has changed, now set at EUR 240,000.
Additionally, updated Intrastat reporting guidelines for 2025 have been published on the website of the Statistical Office of the Republic of Slovenia.