Government confirms tax restructuring package

Government confirms tax restructuring package

Ljubljana, September 8, 2016/Independent Balkan News Agency

The government confirmed on Thursday a tax legislation package primarily aimed at reducing the labour costs for the most highly skilled workers.

The revenue-neutral set of proposals includes tweaks to personal income tax brackets, as well as an increase in corporate income tax.

The personal income tax rates will be reduced for those earning more than 1.6-times the average pay or more than EUR 31,140 a year.

The top 50% tax rate would be preserved, but the general tax credit would be raised, as would the extra deductions for the lowest income brackets.

To help companies facing difficulties in hiring highly-skilled staff due to high tax wedge, part of performance bonuses would be excluded from the taxable base of income from employment.

As a result of the proposed solutions, budget receipts would be reduced by a total of EUR 106m, which would be offset through a raise in corporate income tax from 17% to 19%.

The government also adopted amendments to the tax procedure act which introduce simplifications and extra options for paying tax debt.

If the changes to all three acts are endorsed by parliament, they will become effective as of 1 January 2017.

Source: The Slovenia Times