Foreign tax credit
Tax paid abroad can be credited against tax liability in Slovenia. The amount of tax that can be credited is the amount of final and actually paid tax. If there is a DTT made between countries in question, the amount of tax that can be credited is the amount calculated at the rate determined in the DTT. A taxpayer needs to provide proof of the amount of foreign tax, the basis for calculation of the tax, and the amount of the tax paid.
The tax allowance for investment in equipment and intangible assets is limited to 40% of the value of the assets (also intangibles) invested into and can be utilised up to a maximum of 63% of the actual tax base.
Investment allowances for investing in digital transformation and green transition
As of 1 January 2022, the new tax allowances shall be recognised at 40% amount of the investment in cloud computing, artificial intelligence, big data, environmentally friendly technologies, cleaner, cheaper public and private transport, decarbonisation of the energy sector, energy efficiency of buildings, and implementing of other standards for climate neutrality. These investment allowances can be utilised up to a maximum of 63% of the actual tax base.
Research and development (R&D) allowances
A 100% investment allowance is granted for investments in R&D within the tax period, regardless of the location of establishment of the company within Slovenia. The investment can be utilised up to a maximum of 63% of the actual tax base. Such an investment tax allowance may be obtained for expenditures on:
- internal R&D activities within the company and
- the purchase of R&D equipment from related or unrelated parties or from a private research institution.
Allowances for employing certain individuals
A taxpayer that employs trainees or students to undertake practical work may reduce its taxable profits by an additional 80% of the average monthly payment paid to such persons for every month the person carries out the work.
A taxpayer that employs disabled persons may decrease its taxable profits by an additional 50% of the salary paid to such persons (in addition to the deduction for their actual salary cost). A taxpayer that employs a severely disabled person or a person with a combination of total hearing loss and speech impairment may reduce its taxable base by an additional 70% of the salary paid to such a person (in addition to the deduction for their actual salary cost).
As of 1 January 2022, a new tax allowance shall be recognised for employing a person in the deficit occupations in the amount of 45% of the salary paid to such a person. Another higher tax allowance in the amount of 55% shall be recognised for employing of young people who are first-time job seekers.
Tax relief for employment of hard-to-place workers
A taxpayer who employs a hard-to-place worker may be able to benefit from a tax allowance for both CIT and tax on activity. A hard-to-place worker is a person younger than 29 or older than 55 who has been registered as unemployed for at least six months and who has not been employed by the taxpayer or a related party in the past 24 months. The tax allowance equates to 45% of the salary paid to the person during the first 24 months of their employment, up to the amount of the tax base.