PIT is levied on six different sources of income:
- Personal income (i.e. salary, salary compensation, incentives, benefits and other income derived from employment, pensions, and income earned on the basis of a temporary service contract or some other basis).
- Income from business activity.
- Income from agriculture and forestry.
- Income from letting property and transfer of property rights.
- Income from capital (i.e. interest, dividends, and capital gains).
- Other income (e.g. rewards, gifts, prize contest winnings, scholarships).
Capital gains and investment income
Capital gains, interest, dividends and rental income are generally taxed at a flat rate of 25%. However, the amended PIT Act do not allow the taxpayer to choose whether one's income from capital and rental income will be taxed with a flat rate described in this section or progressive tax rates as described above.
The tax rate on capital gains is decreased according to the length of the holding period. The tax rate is 25% for a holding period from 0 to 5 years, 20% for a holding period from 5 to 10 years, 15% for a holding period from 10 to 15 years, and 0% for a holding period greater than 15 years. The tax on capital gains and rental income is treated as a final tax for residents and non-residents alike.
Interest derived from bank deposits with banks or savings banks registered in Slovenia or elsewhere in the European Union is not subject to taxation up to the amount of EUR 1,000.