Tax news - March 2025

Mandatory Health Contribution

The mandatory health contribution was adjusted on 1 March 2025 to reflect the growth of the average gross salary in the Republic of Slovenia in 2024. The new health contribution of 37.17 EUR will first be calculated in the payroll for March 2025..

Written Notice of Annual Leave Allocation

The employer is required to notify employees in writing about the allocation of annual leave for the current calendar year no later than 31 March. The employer may deliver the decision in writing or send it via email to the employee’s work email address.

Corporate Income Tax Return

The deadline for submitting the corporate income tax return for the tax period is approaching. The return must be submitted via the eDavki system no later than three months after the end of the calendar year for the previous year. For 2024, companies and sole proprietors with a business year aligned with the calendar year must submit the return by Monday, 31 March 2025, at the latest.

The tax return on eDavki must include attachments 3 and 4, where data from the annual report should be entered. These data will be pre-filled for those taxpayers who have already submitted annual report to AJPES.

Tax Return for Advance Income Tax and Income Tax from Business Activities

By 31 March 2025, individuals engaged in business activities must submit the tax return for the advance income tax and income tax on business income for the year 2024. The return must be submitted electronically through the eDavki system.

The tax return on eDavki must also include attachments 3 and 4, where data from the annual report should be entered. If taxpayers have already submitted the annual report to AJPES, the information will be automatically pre-filled in the tax return.

Annual Reports

The deadline for submitting annual reports to AJPES for companies, branches of foreign companies, cooperatives, sole proprietors, associations, and political parties is 31 March 2025.

For legal entities of public law and non-profit organizations (excluding political parties), the deadline for submitting annual reports to AJPES was 28 February 2025.

Records of Calculated VAT and VAT Deduction

Starting from 1 July 2025, it will be mandatory to submit records of calculated VAT and VAT deduction to eDavki system.

If the taxpayer submits both records at least three working days before the deadline for submitting the VAT return, the tax authority will use the data from these records to generate a pre-filled VAT return. This will apply if the taxpayer does not submit the VAT return themselves within this time frame.

The detailed content of the records, as well as the specific conditions and procedures for submission, are prescribed in the Regulation on the Implementation of the Value Added Tax Act. Additionally, the Financial Administration has published more detailed information regarding the records of calculated VAT and VAT deduction, pre-filled VAT returns, frequently asked questions, and technical documentation on its website.

The Supreme Court has limited the actions of the tax authority: The work of a sole proprietor for a company does not necessarily constitute income from an employment relationship

The Supreme Court, in its recent judgment (Case No. VSRS Judgment X Ips 11/2024 dated 29 January 2025), assessed whether the Administrative Court's position was correct in stating that all income of a sole proprietor earned from work for a limited liability company, of which the sole shareholder and director is the same individual, should be taxed as income from employment.

The court emphasized that income should be taxed according to the legal form under which it was earned, i.e., as a result of one-sided or bilateral legal transactions. The provisions of the Personal Income Tax Act (ZDoh-2) apply to income created in such a legal form. Taxation on a different basis is only permissible if explicitly provided by law. The provisions of Article 74 of the Tax Procedure Act (ZDavP-2) contain such explicit authorization for alternative taxation. If the sole proprietor enters into an illegal legal transaction (as per the second paragraph of Article 74 of the ZDavP-2) for managing the company (i.e., work as a director), the income is taxed as income from employment under point 1 of the second paragraph of Article 37 of ZDoh-2.

However, illegal tax avoidance cannot be justified solely on the grounds that the sole proprietor, as a self-employed person, worked for the limited liability company where they are the sole shareholder and director. Even in cases of illegal tax avoidance, the income of the sole proprietor earned through activities within the company (not as a director) cannot be taxed as employment income under the first paragraph of Article 37 of ZDoh-2. Employment is a bilateral, voluntarily established contractual relationship between the employee and employer. If such a contract does not exist, the existence of an employment relationship can only be determined by the competent court in a labor dispute based on the worker's claim, considering the substantive characteristics of their mutual relationship, not by the tax authority ex officio in a tax procedure.

As a result, the tax authority cannot retroactively impose taxes and contributions without a judgment from the competent labor court, as if an employment relationship had already existed with the taxpayer.