Article 59 of the Act determining intervention measures to assist in mitigating the consequences of the second wave of COVID-19 epidemic (ZIUPOPDVE) stipulates that, notwithstanding the Article 109(1) of the Personal Income Tax Act (ZDoh-2), the personal income taxable base for years 2020 and 2021 shall not include allowances received by employees for work in risky conditions, for danger and special workloads at social care providers, at the Government Office for the Support and Integration of Migrants, and at external at external contractors, who perform work at contractors referred to in Article 56 of ZZUOOP.
Also, the annual personal income taxable base does not include allowances for work due to temporary assignment to a provider in the public health service network, a provider in the public service network in the field of social care – institutional care, or a crisis accommodation provider in case of increased workload, as well as the allowances of certain public servants, employee in the field of public works, and pupils and students for work with patients and users suffering from COVID-19.
This will have impact on the calculation of rights arising from public funds, which usually take into the account the income from the personal income tax decision of the previous calendar year: child allowance, state scholarship, reduced kindergarten fee, break-time snack (malica) subsidy for pupils and students, and lunch subsidy for pupils.
By 31 January of the current year for previous calendar year, employers must report the data on employees who were paid allowances in 2020 and/or 2021 and the amount of paid allowance to the Financial Administration of the Republic of Slovenia via file called VIRIZV.DAT – data on paid allowances, which are not included in the taxable base for the annual assessment of personal income tax.
There has also been a change for personal income taxpayers regarding the allocation of a part of personal income tax for donations. A resident taxpayer can now request up to one percent (previously up to 0.5 percent) of personal income tax to be used for financing of donation beneficiaries. At least a percentage of personal income tax rounded to one tenth of the percent (i.e., 0.1 percent) may be allocated to a single beneficiary, whereby the total percentage allocated to several beneficiaries may not exceed one percent of the assessed personal income tax. The resident taxpayer is not required to submit a new request for the allocation of part of personal income tax for donations. Requests that are valid on the day of entry into force of ZIUPOPDVE, i.e., 31 December 2020, shall be considered and percentages are automatically doubled unless the resident taxpayer changes his or her request.
In order to enable funding from the allocation of part of personal income tax to the widest possible circle of non-governmental organisations, the beneficiaries of donations for the allocation of part of personal income tax are:
- for 2020, also non-governmental organizations that operated on 31 December 2019 and, in accordance with the law governing non-governmental organizations, have the status of non-governmental organization in the public interest on 31 March 2021 and are entered in the register of non-governmental organizations in the public interest; and
- for 2021, also non-governmental organizations that operated on 31 December 2020 and, in accordance with the law governing non-governmental organizations, have the status of a non-governmental organization in the public interest on 31 March 2021.
The Agency of the Republic of Slovenia for Public Legal Records and Related Services shall send data on all non-governmental organizations for the purposes of preparing the list of beneficiaries of donations for 2020 and/or 2021 to the Financial Administration of the Republic of Slovenia. In accordance with the Article 142(8) of ZDoh-2, the Government of the Republic of Slovenia shall determine the amendment of the list of beneficiaries of donations (for 2020 by 15 May 2021). A taxpayer who wishes to allocate a part of personal income tax for donations to beneficiaries from the amended list will have to submit a request or change in the request for the assessment year 2020 no later than on 31 May 2021.