On  the portal eTaxes a simplified form was prepared, based on  which it is possible to submit a request for change of corporate income tax (CIT) installment.

During the period of validity of the Intervention Measures in the Fiscal Area Act, it is not required to enclose a tax return for the current tax period with regard to the request for a change of corporate income tax (CIT) installment. The taxpayer should only enclose an estimate of the tax base for the entire current year along with data proving the change in the tax base.

The assessment of the tax base takes into account the realization of operations in the first two months of the current year and the realistic assessment of the tax base until the end of the calendar or tax year. It is also required to enclose evidence or provide concrete data proving the change in the tax base.

The application can also be submitted by taxpayers who expect a higher tax base in 2020 and would like to pay higher CIT installment during the year.

An application for the year-interim change of the CIT installment can also be submitted by legal entities that have already submitted a tax return for 2019, if they believe that based on operations and actual realization in 2020, and based on estimation of operations in the up-coming months of 2020, their tax base in 2020 will be lower than in 2019 and that corporate income tax  for 2020 will be lower than CIT installment based on the calculation for 2019, even taking into account the exemption of CIT installment payment  for April and May 2020.

SLOVENE TAX AUTHORITY CURRENT ADDITIONAL EXPLANATIONS

Below we also summarize some Slovene Tax Authorities’ current answers regarding Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (ZIUZEOP), and measures of partial reimbursement of salary compensation and exemption from contributions from salary compensation.

In accordance with the provisions of Corporate Income Tax Act, refunds of contributions, payments of salary compensation for employees and refunds of sick pay are tax deductible. The Intervention Act ZIUZEOP does not provide any different tax treatment in its provisions.

In accordance with Article 22 of the Intervention Act ZIUZEOP, for the beneficiary who determines revenues according to the accounting rules, revenues are net sales revenues determined according to the accounting rules, and benefits from parental care insurance. Reimbursements of salary compensations for temporarily laid-off workers and forabsence due to force majeure of ZIUZEOP, are not included in the basis for comparing income between the periods defined in the second paragraph of Article 22 of ZIUZEOP.

With regard to branches of foreign companies the criterion for the distribution of profits in 2020 or for 2020 will be determined at the level of the parent company.

For the purposes of Article 99 of the ZIUZEOP, any income of the company's management that depends on or is a consequence of the successful operation of the company and it actually burdens that company should be considered as a bonus. The criteria for eligibility to receive an aid include payments of bonuses to management or part of salaries for business performance to management in 2020 as well as payments of bonuses to management or part of salaries for business performance to management for 2020 (which will usually be paid in 2021 and later).

More in Tax News.