On 9 February 2024, Slovenia officially released the Act amending the Corporate Income Tax Act (ZDDPO-2T) in the Official Gazette. The provisions outlined in the legislation encompass:
- Preventing PE status misuse: New rules limit on strategies used to avoid establishing a permanent establishment (PE) in Slovenia, ensuring companies operating there pay their fair share of taxes.
- Faster PE formation in construction: The activity period for a construction PE to be considered has been reduced from 12 months to 6 months.
- Preventing Activity Splitting: New regulations aim to restrict the exploitation of exceptions for preparatory or ancillary activities as a means of avoiding Permanent Establishment status through the division of activities.
- Taxing real estate gains: The implementation of a 365-day rule regarding profits from the sale of shares, where over 50% of their value is derived from immovable property located in Slovenia. According to this rule, gains become subject to taxation if the specified value threshold is surpassed at any point within the 365 days leading up to the sale.
- Limiting interest deductions: The introduction of a new 30% EBITDA interest deduction limitation in compliance with the EU Anti-Tax Avoidance Directive (ATAD) encompasses various elements. However, exemptions exist for specific conditions like infrastructure projects and certain financial institutions.
The revisions became effective on 10 February 2024 and apply retrospectively from 1 January 2024.
