Tax Alert February 2021

THE SLOVENIAN PARLIAMENT CONFIRMED ACT ON ADDITIONAL MEASURES FOR MITIGATION OF CONSEQUNECES COVID-19

Subsidizing of part - time work

The right to subsidized part-time work can be exercised from 1 February 2021 onwards by an employer who meets the following conditions.

• Is a legal entity that was registered in the Business Register of the Republic of Slovenia before 18 October 2020 and employs workers based on a fulltime employment contract or a natural person performing agricultural activity and was entered in the register of agricultural activities before 18 October 2020 and
• According to employer’s estimate cannot provide minimum 90% of work to at least 10% of workers.

Employers who have received a subsidy and will pay out profits after 1 January 2021, purchase their own shares or own business shares or pay a reward to management, for 2021 or in 2021, should inform the Tax Authorities within two months after payment of before -mentioned payments and in accordance with the decision received from the Tax Authorities  return the funds received together with statutory default interest, which would be calculated from date of receipt of the subsidy and up to the date of  repayment.

Registration regarding work from home

Irrespective of the provisions of Employment Relationships Act, the employer must inform the Labor Inspectorate of the Republic of Slovenia regarding work from home of its employees. Employer must provide information regarding the worker and regarding information related to safety at work.

Employers who have been entered in-to the Business Register of Republic of Slovenia should submit the application electronically.

The measure is valid from 1 February to 31 December 2021.

Crisis Alowance

As per PKP8 any employee whose monthly salary for November 2020, excluding payment related to business performance, did not exceed twice the minimum Slovenian salary, is entitled to the crisis allowance. Payment is made upon payment of salary for the month of January 2021.

The full-time crisis allowance is EUR 200 and is exempt from all taxes and contributions.

To reimburse the paid allowance, the employer submits a statement via the FURS information system no later than by the end of March 2021.

The law also prescribes a fine for employers who do not pay crisis allowance to eligible employees.

Minimum wage subsidies

Employers are, for each employee whose full-time salary without allowances, part of the salary for business performance and payments for business  performance agreed in the collective agreement or employment contract does not exceed the amount specified in the Minimum Wage Act, entitled to reimbursement of the minimum wage salaries in the form of a monthly  subsidy of EUR 50.

The employer is not entitled to a subsidy for employees in the community work. Employers, direct and indirect users of the budget of the Republic of Slovenia and municipal budgets, as well as foreign diplomatic missions and consulates, international organizations, missions of international organizations and institutions, bodies and agencies of the European Union are also not eligible for the subsidy.

To obtain a subsidy, the employer must submit a statement via the FURS  information system no later than the end of the month for the subsidy for the previous month.

The employer is entitled to a subsidy for the payment of work from 1 January 2021 to 30 June 2021.

Employers who have received a subsidy and will pay out profits after 1 January 2021, purchase their own shares or own business shares or pay a reward to management, for 2021 or in 2021, should inform the Tax Authorities within two months after payment of before -mentioned payments and in accordance with the decision received from the Tax Authorities  return the funds received together with statutory default interest, which would be calculated from date of receipt of the subsidy and up to the date of repayment.

Idle Workers

All employers who were entered in the Business Register of the Republic of Slovenia on 31 December 2020 at the latest and are not one of the following employers;

• Direct and indirect users of the budget of the Republic of Slovenia or the municipal budget, whose share of public funding in 2020 was greater than 70%
• An employer who performs financial or insurance activity according to the standard classification and has more than 10 employees as at 3 December 2020
• Foreign diplomatic missions and consulates

and are temporarily unable to provide work to their employees have the right to use subsidy for idle workers.

Employers are entitled to the measure, if their revenue in 2021 would, 

according to their estimate, fall by more than 20% compared to 2019 or 2020 due to the epidemic. If the employer did not perform business in the entire year 2019, 2020 or 2021, employers are entitled to the measures, should  according to their estimates, their revenues in 2021 decrease by more than 20% compared to the average monthly revenues in 2019, 2020 and 2021.

The employer may have idle workers in a maximum period from 1 February 2021 to 30 April 2021.

The government may extend the measure no more than twice and not beyond 30 June 2021.

Postponement of  foreclosures for debts of natural persons 

The government prolonged the measure of postponing the enforcement of debts of natural persons by 17 March 2021. Postponing applies to all  foreclosures as long as they are not urgent matters, which the court also decided on during the epidemic or in case if refers to child alimony.