The Slovenia Tax Authority (FURS) has clarified that investment allowances may be claimed for assets used abroad, confirming the absence of territorial restrictions under ZDDPO‑2 and related provisions, a shift from earlier legislation that confined reliefs to domestic investments.
The Slovenia Tax Authority has issued revised guidance on claiming tax relief for assets used abroad on 10 February 2025.
The guidance was issued in response to an enquiry from a Slovenian tax resident operating via a permanent establishment outside Slovenia, who sought confirmation on whether investment allowances could be claimed in Slovenia for equipment used abroad. FURS confirmed that such claims are permitted under the current legal framework.
FURS also outlined the historical development of the rules. Under earlier legislation, including the Corporate Income Tax Act (ZDDPO) and ZDDPO-1, investment allowances were explicitly limited to assets located in Slovenia, and reliefs were clawed back if qualifying assets were transferred abroad within a specified period.
This territorial limitation was upheld by the Constitutional Court in a 2004 decision, which recognised the legislator’s discretion to confine tax incentives to domestic investments.
However, the authority noted that this approach changed with the introduction of ZDDPO-2 in 2007. From the 2008 tax year onwards, the legislation no longer included a requirement that qualifying assets be physically present in Slovenia. Articles 55a of ZDDPO-2 and 66a of ZDoh-2 allow a reduction of the tax base based on the amount invested, without specifying a territorial limitation.
FURS confirmed that the same absence of territorial restrictions applies to the allowance for investment in the digital and green transition and the allowance for research and development.
