Slovenia

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Tax Policy

TAX POLICY

Income Tax Rate 41%

Corporate Tax Rate 20%

Sales Tax / VAT Rate 20%

Personal income tax

Slovenia has a bracketed income tax system with three income tax brackets, ranging from a low of 16.00% for those earning under 7,529 to a high of 41.00% for those earning more then 15,058 a year.

Tax Bracket (yearly earnings)

Tax Rate (%)

0 - 7,529

16.00%

7,529 - 15,058

27.00%

15,058 and up

41.00%

The Slovenia's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Slovenia. Failure to pay, or underpayment of, the Slovenia income tax can result in high fees, fines, or jail time. In addition to Slovenia's income tax, other taxes may apply to wages or profits earned, including social security, medical care, and capital gains taxes.

Slovenia provides most taxpayers with an income tax credit of 3,100, which can be deducted as a tax-free personal allowance. Slovenia's tax credit is a basic (fixed) allowance available to all (single) taxpayers without dependents. a tapered allowance of 3019.23 may apply.

Corporate income tax

Since 1 January 2010, a flat corporate income tax rate of 20% applies to all corporations. This tax applies to payments to residents and non-residents. Subject to specific conditions, a reduced 0% corporate income tax rate applies to investment funds, insurance companies, pension funds and venture capital companies, which are taxed in accordance with the Slovene Corporate Income Tax Act.

Property tax

The Slovene system of property tax is currently being reformed and the new tax is expected to be implemented as of 1 January 2012.

Currently, property is taxed by three separate local and/or national taxes and dues, depending on the circumstances pertaining to each specific case.

The current property tax, which is applicable both to natural and legal persons, who hold real estate is a local tax. The tax is levied on the property value as determined by law. Property tax is levied at progressive rates, from 0.1% to 1.5%, as set by local municipalities.

Vat rate

The current Slovenia VAT (Value Added Tax) is 20.00%. The VAT is a sales tax that applies to the purchase of most goods and services, and must be collected and submitted by the merchant to the Slovenia governmental revenue department.

A reduced rate of 8.5% applies to items which are specifically enumerated in the Slovene VAT Act. These items include, but are not limited to food, medicine and medical equipment, and some residential buildings.
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Source: http://world.tax-rates.org
http://www.iclg.co.uk/