Last Updated on 7 April 2020 16:00 CET
On 2 April 2020, the National Assembly of Slovenia adopted new COVID-19 intervention measures by passing the “Anti-Corona” act[1], which supplements and partially revokes intervention measures already in force.
Intervention measures refer also to certain changes in the field of taxation and social security contribution payments in Slovenia.
As for the majority of measures, the “Anti-Corona” act will be applied retroactively from 13 March 2020 onwards and will remain in force until 31 May 2020, but depending on the status of pandemics it may be prolonged until the end of June 2020.
Exemption from Payment of Social Contributions
Subject to conditions at the level of the employer, from 13 March to 31 May 2020 all social security contributions for the employees ordered to wait for work at home, as well as all employees who cannot work due to force majeure, will be paid by the State, however only up to the amount of salary compensation, which does not exceed the amount of average monthly salary in the Republic of Slovenia for 2019.
An eligible employer is any employer in Slovenia that fulfils the following conditions:
- is not a direct or indirect user of state or municipality budget, whose share of revenues from public sources in 2019 was higher than 70%;
- is not pursuing a financial or insurance activity listed under group K of the standard classification of activities;
- anticipates at least a 20% decrease in January-June 2020 revenues and no more than a 50% growth in revenues during the July-December 2020 period, both in comparison to the respective periods in 2019;
- if the employer did not operate in 2019, it would be eligible for reimbursement if its March 2020 revenues are at least 25% lower in comparison to February 2020, or its April or May 2020 revenues are at least 50% lower than revenues in February 2020;
- its employees were ordered to wait for work at home or were unable to perform work due to force majeure in a period from 13 March until 31 May 2020;
- does not distribute profits, pay management bonuses and/or business performance bonuses in 2020 (applicable for payments from the date the “Anti-Corona” act enters into force);
- dully and timely fulfils its tax obligations;
- is not subject to bankruptcy proceedings.
Exemption fro Payment of Disability and Pension Insurance Contributions
All disability and pension insurance contributions due for the work from 13 March to 31 May 2020 for employees working during the validity of the “Anti-Corona” act will be paid by the State. The exemption applies to employers which directly or indirectly use state or municipal budget and employers engaged in financial and insurance activities under group K of the standard classification of activities.
Crisis Supplement
Together with salaries for April and May 2020, employers must pay the “crisis supplement” in the amount of EUR 200 (free of taxes and contributions) to all employees who are working during this period and whose gross salary does not exceed triple the amount of minimum wage in Slovenia. The exemption applies to employers which directly or indirectly use state or municipal budget and employers engaged in financial and insurance activities under group K of the standard classification of activities.
Benefits for Private Entrepreneurs
Private entrepreneurs and farmers affected by the COVID – 19 epidemics are entitled to a monthly Contingency allowance in the amount of EUR 350 for March and 700 EUR for April and May 2020 each. Affected private entrepreneurs and farmers will benefit also from the exemption of social security contribution obligations for the period from 13 March until 31 May 2020. All respective social security contributions will be paid by the State.
An Eligible employer is any employer on the territory of the Republic of Slovenia, which fulfils the following conditions:
- anticipates at least a 25% decrease in March 2020 revenues comparing to February 2020 and at least a 50% decrease in April and May comparing to February 2020;
- benefits would be returned to the State if the employer does not fuilfil the following conditions:
- 20% or more of a decrease of revenues in January-June 2020 period compared to the same period in 2019 and increase of revenues in the period of July-December 2020 compared to the same period of 2019 of not more than 20%;
- records no tax obligations – for contingency allowance at the time of the validity of the measures and for the exemption of social security contributions at the time of the submission of the application to exercise the respective benefits.
Freezing of Advance Payments
Corporates and private entrepreneurs are not required to pay advance tax payments for 2020 due for the period of April and May 2020.
An overview of the measures remaining in force as of March 2020 can be found below.
Extension of Tax Return Deadlines
The deadline for the submission of the Corporate Income Tax return and Personal Income Tax return for private entrepreneurs is extended from the regular deadline on 31 March 2020 to 31 May 2020 (deadline expires on 1 June 2020). For the taxpayers whose tax period is not the same as the calendar period and the return would regularly need to be submitted during the validity of the COVID – 19 measures, the deadline for the submission of their returns is extended for two months.
Since the deadline for the respective returns is extended, taxpayers are required to apply/disapply for the lump-sum taxation system by 31 May 2020 (i.e. 1 June 2020).
Procedure for the Decrease of Advance Tax Payments
Governmental measures entail also certain changes in procedure to decrease the advance tax payments required to be paid in 2020. Taxpayers are not required to submit certain documentation as they were in previous years and they can submit the application through eTaxes system or by email. In order to be granted with a decrease of advance tax payment, taxpayers remain to be required to substantiate the expected decrease of taxable revenues and impact that this might have on their tax liabilities for 2020.
Deferral of the Payment of Tax and Enforcement of Tax Liabilities
Based on the mechanism which was available even before the COVID-19 measures were taken, taxpayers are allowed to apply for the deferral of tax payment for the maximum period of two years or payment of tax in the maximum amount of 24 instalments if they suffered economic damage as a consequence of the epidemic and relative government measures.
During the validity of the measures, tax liability enforcements will be carried out by the Financial Authorities according to the policy, which will be adopted by the competent Ministry of Finance of the Republic of Slovenia. Certain changes with respect to the practical implementation of the enforcements may be expected in this regard.
Social Security Contributions for Private Entrepreneurs
Private entrepreneurs, who employ no other persons, and are included in the compulsory social security system only as per their self-employment, are entitled to a deferral of social security contribution payments due in April, May and June 2020. Unsettled liabilities will need to be repaid by 31 March 2022. This will not be available for entrepreneurs that have outstanding obligations towards the Financial Authorities higher than EUR 50 as of 28 February 2020 and will not settle the respective obligations until 6 April 2020.
This benefit applies also for private entrepreneurs, which do not meet the conditions for the exemption of the social security contributions as per the measures adopted on April 2, 2020 (please refer to the section above “Benefits for private entrepreneurs”).
Annual Personal Income Tax Obligations
Based on the information provided by the Financial Authorities, informative income tax calculations will be issued to physical persons by the Financial Authorities at the same time as in the previous periods. The deadline for the issuance of the informative income tax calculations will be extended for private entrepreneurs by 30 June 2020. The deadline for the submission of the Personal Income Tax declaration in cases where informative income tax calculations is not issued by the Financial Authorities is extended from 31 July to 31 August 2020.
Tax Procedure Deadlines
Deadlines for regular tax affairs, that entails ordinary collection of taxes, such as personal income tax, corporate income tax and VAT, have not been interrupted. This means that the taxpayers remain obliged to declare (if applicable) and pay such tax within statutory deadlines. Any remedies that are available to taxpayers in regular matters must be exercised within statutory deadlines.
On the other hand, procedural and material deadlines in irregular tax affairs, such as tax inspection proceedings, are currently interrupted.
[1] The Act on the intervention measures to stem and mitigate the consequences of the SARS-CoV-2 (COVID-19) communicable disease epidemic for citizens and the economy.
