2019 tax reform and updates

Ending February, the Ministry of Finance released a package of nine measures aimed at optimizing taxes and the taxation of income from employment, whilst replacing the budget deficit with an increase in taxation of capital and a more effective fight against grey economy, tax evasion and social fraud.

Measures aimed to reduce the tax burden of income from employment are the increase in marginal tax brackets and lowering of marginal tax rates, an increase of tax reliefs, lowering the tax burden on holiday pay and lastly lowering the tax burden on the reward for performance. On the other hand, capital gains tax shall be increased from 25% up to 30% and the corporate income tax rate shall also rise by 1% annually, up to a maximum of 22% in 2022. Lastly, a limited carry-foward of tax loss is to be enforced.

As for the latest news regarding above mentioned measures, today the Parliament is about to adopt the amendment to the Personal Income Tax Act. This means that annual holiday allowance up to 100% of the average monthly salary (currently grossing EUR 1,729.15) will not be included in the tax base for assessing personal income tax.

Still, the holiday allowance must be paid until June 30th.

 

RELATED POSTS
JUDGMENT OF THE COURT OF JUSTICE REGARDING THE ACT ON JUDICIAL PROTECTION OF FORMER HOLDERS OF ELIGIBLE LIABILITIES

JUDGMENT OF THE COURT OF JUSTICE REGARDING THE ACT ON JUDICIAL PROTECTION OF FORMER HOLDERS OF ELIGIBLE LIABILITIES

With the adoption of the Act on Judicial Protection Procedure for Former Holders of Eligible Liabilities of Banks (Act on…

Read more
IMPLEMENTATION OF THE EU DIRECTIVE ON WORK-LIFE BALANCE

IMPLEMENTATION OF THE EU DIRECTIVE ON WORK-LIFE BALANCE

The Directive (EU) 2019/1158 on work-life balance for parents and carers came into effect in August of this year. It…

Read more
Withdrawal from case-law on the publicity effect of entries in the land register in light of the starting point of the subjective limitation period for a damages claim

Withdrawal from case-law on the publicity effect of entries in the land register in light of the starting point of the subjective limitation period for a damages claim

In Case No III Ips 38/2021, the Supreme Court of the Republic of Slovenia has mitigated its jurisprudence on the…

Read more

Address:

Dalmatinova ulica 2
SI-1000 Ljubljana, Slovenia

Phone:

+386 59 097 400
+386 59 097 410

Email:

info@s-k.law

Social: