Slovenia’s Ministry of Finance announced the Draft Bill on Amendments to the Income Tax Act on 6 June, 2024.

The main measures of the bill include a special tax allowance which has been introduced for new resident workers, which offers a reduction in personal income tax by 7% on their salaries; introduction of a five-year limit on carrying forward tax losses related to income from activities, with a transitional seven-year limit for accrued tax losses; elimination of the requirement for non-residents (EU/EEA) to prove that income earned in Slovenia is exempt from taxation or untaxed in their country of residence (To be eligible for tax relief, non-residents must demonstrate that the income earned in Slovenia is at least 90% of their total taxable income for the tax year); revision of the income threshold for joining the standardised expenditure system for determining the tax base on income from self-employment is set at EUR 60,000 from the previous year.

The standardised deductions and exit regulations state that taxpayers enrolled in pension and disability insurance due to self-employment for at least nine months in a tax year can claim a standardised deduction of 80% on income up to EUR 60,000 and 0% on income exceeding EUR 60,000; taxpayers who do not meet the insurance condition can claim a standard deduction of 80% on income up to EUR 12,500, 40% between EUR 12,500 and EUR 30,000, and 0% on income over EUR 30,000; and taxpayers who join the system will forfeit the standardised deduction if their average income over two consecutive years exceeds the EUR 60,000 threshold.

The tax measures will go into effect from 1 January, 2025, after approval.