On 17 October 2023, the Slovenian Ministry of Finance (MoF) issued a draft bill to amend the corporate income tax law. Once adopted by the Slovenian parliament the amendments will apply from 1 January 2024. The following amendments are proposed:
- The Slovenian government is proposing new rules to prevent businesses from using commissionaires and other arrangements to avoid being considered a permanent establishment (PE) in a country;
- A change in the rules so that a construction company will be considered to have a permanent establishment (PE) in a country if it carries out its activities there for 6 months, instead of 12 months;
- A new rule will be introduced that will tax profits from the sale of shares in Slovenian companies if the sale takes place within 365 days of the company acquiring real estate in Slovenia, even if the sale is indirect. This rule will apply if at least 50% of the value of the shares comes from the company’s real estate in Slovenia.
- The proposed bill amendments introduce the EBITDA rule (EU Anti-Tax Avoidance Directive -ATAD directive), which limits the deductibility of interest expenses. Under this rule, excess borrowing costs are the amount by which a taxpayer’s deductible borrowing costs exceed their taxable interest income and other economically equivalent taxable income. Excess borrowing costs are recognized for tax purposes in the amount of 30% of EBITDA or EUR 1 million, whichever is greater. If a taxpayer does not recognize excess borrowing costs, the interest is fully recognized for tax purposes.
