The corporate income tax paid by companies in Slovenia was reduced from last year’s 18% to 17% at the beginning of this year, as the government aims to stimulate economic recovery and new employment.
The corporate income tax rate was 20% as recently as 2011, and the center-right coalition government intends to gradually reduce the current rate of 17% further, planning to lower the corporate income tax to 15% within two years.
Such economic stimulus measures were supported by the opposition in parliament during the adoption of amendments to the corporate income tax law. The new tax relief for the economy, according to the Slovenian government, could encourage domestic and foreign investors to invest more and enable the creation of 4,000 jobs in the private sector.
At the beginning of this year, a revised tax procedure law also came into effect in Slovenia, allowing tax relief for companies with annual revenue of less than 50,000 euros. For these companies, the income tax will be calculated on a base amount of 30% of revenue, while the remainder will be recognized as a standardized business expense.
