Country Study, Slovenia Winning the Transitional Economies Race — страница 6

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signed by the former Yugoslavian government. In addition, a temporary tax exemption regarding capital gains derived from securities transactions has been extended to January 1, 1997.[54] "As of January 1, 1994, up to 20% of the amount reinvested in fixed assets(except for cars used for personal purposes) and long-term intangible assets is deductible from the investor’s taxable income, provided that the amount does not exceed the tax base."[55] The tax structure also provides for 30% deductions from taxable income for the first year if the corporation hires an unemployed or disabled worker. "Taxable income is defined as gross income less expenses incurred in earning that income."[56] Some of the deductions include: 1) depreciation on fixed assets if it does

not exceed set rates, with straight line depreciation being used only;[57] 2) interest if it does not exceed the average interbank interest rate; 3) sums contributed for future reserves for investment; 4) up to 70% for entertainment expenses; 5) losses may be only carried forward for five years.[58] Furthermore, for corporation inventories are valued using the first-in, first-out method; last-in, first-out method; or the weighted average method. Individual Tax If one is a resident citizen of Slovenia, taxable income includes income world-wide, however, for non-residents only income earned within Slovenia can be taxed. The system does not provide for the taxation of families, only individuals; therefore, joint tax returns are not filled. The income tax is paid directly through the

employer and is based on progressive rates for the income earned in the previous month.[59] (See Appendix XI) In addition, capital gains of real estate are taxable. After January 1, 1997, gains from sales of securities will also be taxable.[60] The government has some deductions and relief built into the system. All individuals may deduct an amount equal to 11% of the annual wage in Slovenia; in fact if you earn less than this amount you do not have to file a return. Furthermore, up to 3% of the tax base can be deducted for each of the following: 1) expenses in purchasing state securities, 2) membership fees in various parties or organizations, 3) payments for health care, 4) payments for education.[61] Withholding Tax Slovenia levies a withholding tax of 25% for residents and

15% for non-residents. There is also a withholding tax on royalties of 25% on all individuals.[62] Inheritance and Gift Tax Beneficiaries of the inheritance or gift must pay taxes unless they are the spouse or child of the donor. If the beneficiary is a relative(i.e., brother, sister , nephew or niece) they have to pay only 5 Tolars on receipts with a market value of 1,164,822 Tolars. However, if the beneficiary is not a relative they may have to pay up to 30% of the value in taxes.[63] Property Tax Once the value of the building is determined by the government, a progressive rate of no more than 1.5% is applied. Some buildings may be exempt. Their is also a tax of 2% of the purchase price on immovable property.[64] Customs and Excise Duties Rates for imports vary form 0% to 25%

of the value of the goods. There are also some excise taxes which apply to fuel, tobacco, and alcohol.[65] Value-Added Tax The VAT, which was introduced to Slovenia at the beginning of 1996, will provide important revenue to the Slovenian government. Before the VAT was introduced, sales tax was assessed on the sale of retail goods and services and on imports. However, several rates applied depending on the type of good. The tax was ultimately paid by the consumer. The VAT has already been introduced in 5 other transitional economies and it seems to be effective. In addition according to OECD, the VAT continues to be a key in the tax reform process in the transition countries. As the previous discussion shows, Slovenia has developed a highly specific, and involved tax structure.

The country is making an attempt to have a sophisticated tax administration and structure that is effective, efficient, equitable and has a yield that will allow for enough revenue for the government to function. In addition, the country has a highly diversified tax base, which also strengthens the income from tax revenue. Social Insurance Slovenia’s current social safety nets and income transfers are obstructing free market labor productivity, postponing structural adjustment and are harboring high levels of unemployment. Before entry into the EU, Slovenia must alter its social programs. There is a strong belief among EU members that the assistance for employment fostering policies leading to the future improvement in the quality of labor in Slovenia is more efficient and