Slovenia is implementing temporary corporate tax increases, new incentives for investment funds, a broader VAT base, and multiple VAT compliance simplifications in its 2026–2027 budget implementation act.
During a correspondence session on 15 November 2025, Slovenia’s government endorsed proposed amendments to the draft Act on the Implementation of the Budgets of the Republic of Slovenia for 2026 and 2027.
The revisions were prepared in response to comments from the Legislative and Legal Service of the National Assembly, the agreement on lump-sum financing with municipal associations, and the adjustment of the coefficient used to harmonise tax reliefs and the personal income tax scale.
The government continues to prepare the 2025–2026 budgets and has approved the allocation of expenditures across budget users. Over the next two years, priority will remain on addressing the impacts of last year’s floods and advancing economic growth and development initiatives.
The key tax measures are:
Corporate tax adjustments
One of the most notable measures affecting companies is the increase in the corporate income tax (CIT) rate. Earlier, Slovenia raised the corporate income tax burden by 3 percentage points for the period 2024–2028, raising it from 19% to 22%. This increase is temporary, applying for the years 2024 through 2028, and is designed to serve as a dedicated source of financing for the post-flood reconstruction fund (ZORZFS).
Another notable aspect of the Corporate Income Tax Act is a legislative proposal aimed at providing a 0% tax rate for investment funds.
Expanded tax base for VAT
The VAT rate on beverages containing added sugar and energy drinks was raised from 9.5% to 22%.
Furthermore, the government has focused on reducing administrative burdens associated with VAT compliance. A recent amendment to the VAT Act introduces several administrative simplifications to enhance competitiveness, including:
- The implementation of pre-filled VAT returns.
- The removal of the obligation to issue invoices for sales conducted through vending machines.
- Raising the threshold for mandatory VAT system entry for small taxpayers.
- The planned introduction of VAT groups, set to take effect on 1 January 2026, aims to streamline compliance, reduce administrative burdens, and improve overall financial efficiency for businesses.
