For tax purposes, a part of salary for business performance, Christmas bonus or thirteenth salary are deemed to be an income arising from the employment relationship. Such bonuses are subject to calculation and payment of social security contributions, and in some cases, personal income tax, regardless of whether they are paid as a payment for business performance or any other type of payment. The payment for business performance paid up to 100% of average gross salary in the Republic of Slovenia, is not subject to payment of personal income tax, but only contributions. If an employer pays higher amount, such payment will be charged to tax, but only the part which exceeds the amount of average monthly gross salary.
More favourable tax treatment applies only to payment for business performance which is paid once in a calendar year. If an employer pays a payment business performance without personal income tax in January, it can no longer use such tax benefit until January next year.
All employees of certain employer must have a right to receive payment for business performance, whereby the right to payment for business performance and the criteria for its payment should be determined in a general act of the employer, or in a collective agreement or other act based on such collective agreement.
Furthermore, all employees of an employer shall be deemed to be entitled to payment for business performance if the conditions for obtaining the right are unified for all employees by a general act of the employer.