Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

4. The person making the payment or the beneficial owner is:
- Established in one of the forms for which joint taxation system relating to payments
of interest between related companies from different EU member states
is implemented.
- A resident of an EU member state for tax purposes in accordance with the legislation
of that member state and is not considered to be a resident of a third state
(outside of EU) in accordance with international agreement on avoidance of
double taxation, concluded with this third (non EU) state,
- is liable to pay one of taxes, for which joint taxation for related companies joint
taxation system relating to payments of interest and payment for the use of financial
rights between related companies from different EU member states is
implemented. Such taxes are defined by the Ministry of finance, whereas the
company that is exempted from the payment of such tax as well as for the payment
which is identical of very similar to this kind of tax and was implemented
additionally or substitutes the existing tax shall not be considered to be a taxable
person.
Company from another EU member state is considered to be beneficial owner of interest or
royalties only if it receives such payment for its own account and not as an intermediary (such
as representative, trustee). In addition, it has to be noted that Article 72 of CITA applies only to
the interest that are in accordance to the arm’s length principle and Slovenian “Rules on the
Recognized Interest Rate”.
Slovenian personal and corporate income tax provisions referring to notes
Natural person, a Slovene resident, who trades with financial instruments, is liable to PIT payment
arising from capital gains. Taxable alienation of capital shall mean any alienation of capital,
such as sale of capital, giving capital as gift, exchange of capital for another capital, cashingin
of investment coupon, payment of a share, in case of cessation of company. Taxable basis for
capital gains tax is the difference between the value of the capital at the time of alienation and
the purchase value of the capital. Standard costs of 1% of the purchase i.e. sales value are recognised
when defining the taxable basis. According to Article 132 of PITA-2 PIT is paid at a
rate of 20 per cent. and is considered as final tax paid. The actual tax rate used for capital profit
taxation is decreased after each consecutive 5 years period of ownership of capital as follows:
In the first 5 years 20 per cent.
From 5 up to 10 years 15 per cent.
From 10 up to 15 years 10 per cent.
From 15 up to 20 years 5 per cent.
After expiration of 20 years of ownership- 0 per cent.
A legal person shows the income from capital gains as regular revenue, which is included in the
taxable basis for CIT (paid at a rate of 23 per cent. for 2007). Person who is liable to pay tax on
capital gains is a resident and a non-resident achieving income by carrying out activities in a
permanent establishment or through a permanent establishment in Slovenia. Costs relating to the
financial investment are normally recognized as expenditures for CIT purposes for the company.
Slovenian inheritance and gift tax
Person subjected to inheritance and gift tax is a natural person who inherits or receives as a gift
property as well as the person who receives property on the basis of the lifetime maintenance
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