Slovenia proposes temporary additional bank tax and corporate income tax rate increase

Slovenia has announced plans to introduce a new 0.2% tax on banks’ balance sheets and raise the corporate income tax (CIT) from 19% to 22% to fund measures to support areas affected by the floods of August 2023.

The temporary bank tax will be in effect for five years, from 2024 to 2028, and will be capped at 30% of the bank’s profit. Banks can offset the tax base by the sum of cash donations aimed at addressing flood-related consequences and the difference between the CIT paid at the temporarily increased rate (22%) and the pre-increase rate (19%).

The CIT rate increase will also be temporary, lasting from 2024 to 2028. The legislation also impacts the taxation of individual investors holding securities issued by the Republic of Slovenia in 2024, 2025, or 2026. When paying income tax, they will be equated with interest from cash deposits at banks and savings at banks, meaning that the total amount of interest will be tax exempt up to EUR 1,000.

The new taxes are expected to come into effect in January 2024.

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