Slovenia has a vast network of double tax treaties signed all over the years with: Albania, Austria, Belgium, Belarus, Bosnia and Herzegovina, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, India, Ireland, Israel, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Netherlands, Norway, People’s Republic of China, Poland, Portugal, Qatar, Republic of Korea, Romania, Russian federation, Serbia, Montenegro, Singapore, Slovak Republic, Spain, Sweden, Switzerland, Thailand, Turkey, Ukraine, Great Britain and Northern Ireland, United States of America.
Some treaties are not yet in effect, even though it were ratified in Slovenia. These treaties were concluded with Armenia, Egypt, Kuwait and Germany. The protocol with Germany is replacing the previous treaty between the Federal Republic of Germany and Republic of Slovenia regarding the taxation of incomes and capital.
These double tax agreements are very important for foreign businessmen interested in forming a company in this country and our experts in company registration in Slovenia can explain how these treaties can be applied in our clients' best interests.
The corporate income tax in Slovenia is 18% from the taxable profits. If the capital is owned by a treaty non resident, the taxation is usually made only in the country of origin.
In order to beneficiate from this regulation, the foreign corporate body or individual must provide a certificate of taxation issued by the competent foreign tax authority. Our company formation consultants in Slovenia can assist you in this matter.
The regulatory legislation applicable to the double tax treaties is the Tax Procedure Act from 2005, Articles 260 and 262.
According to it, there are two ways to avoid the double taxation: by exemption or reduction of the tax payment or by tax deducted refund. The tax refund is usually requested when the provisions of the double tax treaty were not followed.
Both privileges may be obtained by applying the appropriate completed form at the Slovak tax authorities. For each payment of income, the taxpayer must issue a new request, but in exceptional cases is possible for the tax authorities to approve the one time submission of documents (only if the requester pays out income regularly).
The Slovak companies must pay a withholding tax on dividends of 15% but if the company doesn’t have resident shareholders and the residency country has signed a double tax treaty with Slovenia, then a smaller tax applies.
The interests and royalties are also exempt or reduced if special conditions are met. The withholding tax is anyway smaller than the withholding tax paid by a resident. Our specialists in company formation in Slovenia can help businessmen take advantage of the provisions stipulated in the double tax agreements signed by this country. If you are a foreign investor interested in settip up a company in Slovenia, do not hesitate to contact our team.