Corporate Tax 2010 - BMR Advisors

Wolf Theiss Attorneys-at-Law
Slovenia
Slovenia
3.7 Are there any restrictions on tax relief for interest
payments by a local company to a non-resident in addition
to any thin capitalisation rules mentioned in questions
3.4-3.6 above
There is another restriction on the deduction of interest paid on
loans taken from a person resident in a low-tax jurisdiction. Such
interest payments are not tax deductible. Low-tax jurisdictions are
non-EU jurisdictions where the general nominal tax rate is lower
than 12.5%. Currently, the list set up by the Slovenian Ministry of
Finance contains the following countries: Bahamas; Barbados;
Belize; Brunei; Dominican Republic; Costa Rica; Liberia;
Liechtenstein; Maldives; Marshall Islands; Mauritius; Oman;
Panama; St. Kitts and Nevis; St. Vincent and the Grenadines;
Samoa; Seychelles; Uruguay; and Vanuatu.
jurisdiction (see question 3.7), are exempt from corporate income
tax at the level of corporate shareholders. No minimum
participation or holding period is required for the exemption to
apply. A lump-sum amount equal to 5% of the dividends received
is excluded from the exemption, representing deemed expenses
incurred with respect to the exempted dividend income.
With respect of the exemption for capital gains, see question 5.3
below.
Furthermore, there are special rules regarding certain expenses,
such as entertainment expenses and supervisory board
remunerations, which are deductible up to 50% of their total
amount. The writing-off of a claim is recognised as a deductible
expenditure if the taxpayer has taken all possible measures to
collect the claim.
3.8 Does Slovenia have transfer pricing rules
The Slovenian Corporate Income Tax Act provides for detailed
transfer pricing rules, which very closely follow the OECD
Guidelines.
4 Tax on Business Operations: General
4.1 What is the headline rate of tax on corporate profits
The corporate income tax rate for 2009 is 21%. As of 2010 it will
be reduced to 20%. This is a flat tax rate, and there are no
additional corporate income taxes levied at a local level.
4.2 When is that tax generally payable
The corporate income tax assessed is payable annually within 30
days after the date of filing a tax return. The tax return for a given
tax year must be filed within three months after the end of that tax
year (the tax year may be different from the calendar year).
Advance tax payments are due on a monthly basis (quarterly basis
for certain low-income taxpayers). The monthly payments are
calculated as one-twelfth of the tax liability determined in the
company’s previous tax return. There are no minimum taxes due.
4.5 Are there any tax grouping rules Do these allow for relief
in Slovenia for losses of overseas subsidiaries
There is no special regime of group taxation.
4.6 Is tax imposed at a different rate upon distributed, as
opposed to retained, profits
No, there is no difference in this respect.
4.7 What other national taxes (excluding those dealt with in
“Transaction Taxes”, above) are there - e.g. property taxes,
etc.
Corporations are subject to real estate tax, which is payable by the
owners or users of plots of land and buildings. The rate varies,
depending on the municipality.
4.8 Are there any local taxes not dealt with in answers to
other questions
No, there are not.
5 Capital Gains
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4.3 What is the tax base for that tax (profits pursuant to
commercial accounts subject to adjustments; other tax
base)
A company’s taxable basis is the profit as determined in the
financial statements, adjusted if mandatory tax provisions deviate
from financial accounting rules. As a general rule, a company may
deduct all expenses directly connected to, or resulting from, its
business activities. Expenses not directly connected to the pursuit
of the company’s business activity, expenses of a private nature and
expenses not commonly incurred in usual business practice are not
deductible.
4.4 If it otherwise differs from the profit shown in commercial
accounts, what are the main other differences
The main difference relates to an exemption of dividends and
capital gains, which under certain conditions are exempt from the
taxable basis.
In general, dividends received from resident and non-resident
companies, except from companies resident in a low-tax
5.1 Is there a special set of rules for taxing capital gains and
losses
There is no specific concept of a capital gains tax. As a general rule,
capital gains or losses are included in the taxable income of the
taxpayer. However, under certain conditions, capital gains from the
alienation of a participation may be exempt from taxation (see
question 5.3).
5.2 If so, is the rate of tax imposed upon capital gains
different from the rate imposed upon business profits
Capital gains are considered as normal business income and are
thus subject to corporate income tax at a rate of 21% (for 2009),
unless the conditions for the exemption are fulfilled (see question
5.3).
5.3 Is there a participation exemption
The Slovenian Corporate Income Tax contains a participation
exemption which applies to capital gains or losses resulting from
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