Slovenia

Corporate - Corporate residence

Last reviewed - 10 January 2020

A legal entity is considered to be a Slovenian tax resident if the entity has its statutory (registered) seat or place of effective management located in Slovenia. These conditions, however, do not exclude a society or any association of persons, including an association under civil or foreign law that does not have legal identity, from also being considered to be a Slovene tax resident.

Permanent establishment (PE)

The Slovene definition of a PE is generally in line with the definition set out in the Organisation for Economic Co-operation and Development (OECD) model tax treaty. Thus, it is a place of business in Slovenia in or through which the non-resident’s activities are conducted in whole or in part. The following, in particular, are considered to constitute a PE:

  • An office, branch, factory, workshop, mine, quarry, or other place where natural resources are obtained or exploited.
  • A building site; construction, assembly, or installation site; or the supervision thereof if the duration of the activities concerned exceeds 12 months.

A place of business is not considered a non-resident’s PE if the non-resident:

  • only uses the premises in question for storage, display, or delivery of goods belonging to oneself
  • only maintains inventories of goods belonging to oneself for the purpose of storage, display, or delivery
  • only maintains inventories of goods belonging to oneself for the purpose of processing by third parties
  • only maintains the place of business in question for the purpose of purchasing goods or collecting information for oneself
  • only maintains the place of business for the purpose of engaging in any other preparatory or auxiliary activity for oneself, or
  • only maintains the place of business in question for the purpose of any combination of activities referred to above, provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

Please note that with the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), certain PE provisions of Double Tax Treaties (DTTs) that Slovenia has in place with other countries could be affected from July 2018 onwards.