Taxpayers with a registered office and who actually perform an activity in regions with high unemployment (including Pokolpje) may claim tax relief for employment and investments.
Employers with a registered office and who actually perform an activity in a development region with high unemployment or, in cases when they perform an activity for which there is no registration authority or other prescribed records, have temporary or permanent residence in a development region with high unemployment and actually perform an activity (as an employer) in that region and are also liable to pay taxes under the Corporate Income Tax Act and the Personal Income Tax Act, and who generate income from that activity and employ a worker for a period of at least 12 months (a worker who did not receive regular employment wages during the last six months or has not completed secondary education or vocational training or is older than 50 years of age or is a member of an ethnic minority or is deemed disabled in the quota system for the employment of disabled persons), may exercise their right to reduce their tax base for 70% of the costs associated with that worker (gross wages and mandatory employer contributions for social security), up to the amount of the tax base and up to the maximum permitted amount in accordance with the rules governing state aid.
Incentives for employment and tax relief for employment may be summed. However, that sum, together with other potential aid for stimulating employment, may not exceed the maximum permitted aid in accordance with the rules governing state aid.
Employers from the coal mining industry and companies in distress, as defined in the Act Governing Rescue and Restructuring Aid for Companies in Difficulty and Regulation (EC) No 800/2008, are not entitled to claim tax relief for employment.
A taxpayer may, for investments in the period set out in the second paragraph of Article 25 of the Promotion of Balanced Regional Development Act (ZSRR-2), exercise their right to reduce their tax base in the amount of 70% of the invested amount for new initial investments in equipment and intangible assets, except for investments in the equipment and intangible assets set out in the second and third paragraphs of Article 55a of the Corporate Income Tax Act and in the second and third paragraphs of Article 66a of the Personal Income Tax Act, but only for investments in a region with development challenges and high unemployment, and only up to the amount of the tax base and up to the maximum amount permitted in accordance with the rules governing state aid. That paragraph does not apply to taxpayers whose tax base is determined in accordance with the third, fourth, sixth and seventh paragraphs of Article 48 of the Personal Income Tax Act.
A taxpayer must maintain an investment project in a development region with high unemployment and may not dispose of the assets for which it exercised its right to tax relief for investments according to the aforementioned article for at least five years following the completion of an investment if it is deemed a large company, and for at least three years if it is deemed a medium-sized or small company.
Assistance for applicants
Tax relief for employment and investments is provided by the Financial Administration of the Republic of Slovenia (FARS).
Novo mesto Financial Office (covers the administrative units of Črnomelj, Metlika, Novo mesto and Trebnje): Kandijska cesta 21, p.p. 380, 8001 Novo mesto; telephone: +386 7 371 96 00, fax: +386 7 371 96 02, email: email@example.com.
Kočevje Financial Office (covers the administrative units of Kočevje and Ribnica): Ljubljanska cesta 10, p. p. 53, 1330 Kočevje, telephone: +386 1 893 91 10, fax: +386 1 893 91 42, email: firstname.lastname@example.org.