In June edition of tax news we inform you about the second batch of Informative tax calculations for year 2023, about the confirmed amendment to the Market in Financial Instruments Act, about the Directive on Respecting Sustainability Aspects in Corporate Operations, about the Opinion of the Agency for public oversight of auditing regarding disclosure of legal transactions in the Related party report, about the adopted measures for the EU's fight against money laundering and financing of terrorism and about other proposed changes in tax landscape.
THE SECOND BATCH OF INFORMATIVE TAX CALCULATIONS FOR YEAR 2023
Slovenian Tax Authorities issued the second batch of Informative tax calculations for year 2023 on 31 May 2024.
The Informative tax calculation is assembled according to the information available to the Tax Authorities based on official records, data on the income and dependent family members, which were reported to the Tax Authorities by payers of the income and individuals during the year.
We would like to draw your attention to a new special tax relief that is granted to every resident until the age of 29. The tax relief amounts to EUR 1,300 or proportionally according to the number of months of employment in a particular tax year.
The individual must carefully review the Informative tax calculation. If the individual does not agree with the calculation or finds that the given data is incorrect or incomplete, he must file an objection against Informative tax calculation and submit it to the competent office that issued the calculation no later than 30 days (15 days from received Informative tax calculation which is considered received after 15 days from when the Informative tax calculation was dispatched) from the date the calculation was issued. Deadline for submitting the objection is 30 June 2024. If the individual agrees with the data included in the calculation and finds that it is correct, no further action is needed. In such case, after the expiry of the deadline for filing an objection, the Informative tax calculation is considered as their final annual income tax assessment for the tax year.
If the taxpayer does not receive the Informative tax calculation by June 15, he must contact the tax office and ask whether it may have been issued to him. Each individual can check this by entering their tax number in the "Search" field on the first page of eDavki. If the taxpayer finds that an Informative tax calculation has been issued, he can receive a free copy from the financial office. If it has not been issued, they must file an Annual tax return by July 31. He must also file Annual tax return if individuals tax residency ceased in 2023.
CONFIRMED AMENDMENT TO THE MARKET IN FINANCIAL INSTRUMENTS ACT
The National Assembly has adopted an amendment to the Market in Financial Instruments Act on 23 May, which introduces the amendments to the European Markets in Financial Instruments Directive into Slovenian legislation. The amendments mainly include extending the definition of financial instruments to those issued using distributed ledger technology (DLT), which also includes blockchain technology (cryptocurrency).
The main purpose of the amendment is to transpose the changes in the EU Directive, which allows for safe trading in financial instruments issued based on distributed ledger technology. Platforms using this technology will be supervised by the relevant regulatory authorities.
In addition, the amendment brings changes related to the admission of securities for official quotation on a stock exchange and to corporate sustainability reporting. It also updates the rules for central securities depositories, their legal forms, and their supervision, which should contribute to greater safety and diligent management.
DIRECTIVE ON RESPECTING SUSTAINABILITY ASPECTS IN CORPORATE OPERATIONS
In May 2024, the EU Council adopted a Directive on corporate sustainability due diligence. According to this Directive, large companies must ensure respect for human rights and environmental obligations throughout their supply chains. The rules apply not only to the companies' own operations but also to the activities of their subsidiaries and business partners within the companies' value chains. The Directive will affect companies with more than 1,000 employees and over 450 million euros in sales revenue.
According to the Directive, the obligated companies must comply with the following regulations:
- Ensuring respect for human rights,
- Compliance with environmental obligations,
- Adoption and implementation of a climate transition plan.
In case of non-compliance, companies will be required to take appropriate measures to prevent, mitigate, eliminate, or minimize negative impacts as much as possible. In some cases, they may also be required to pay compensation for the damage caused.
The Directive will come into force on the 20th day after its publication in the Official Journal of the EU. Member States thus have two years from the publication to introduce the necessary regulations and administrative procedures in accordance with the provisions of the Directive.
The Directive will be integrated into business operations gradually based on company size. Three years after the Directive comes into force, it will need to be complied by companies with more than 5,000 employees and 1,5 billion euros in revenue. Four years after it comes into force, it will apply to companies with more than 3,000 employees and 900 million euros in revenue. Five years after it comes into force, it will apply to all companies with more than 1,000 employees and 450 million euros in revenue.
OPINION OF THE AGENCY FOR PUBLIC OVERSIGHT OF AUDITING REGARDING DISCLOSURE OF LEGAL TRANSACTIONS IN THE RELATED PARTY REPORT
On April 9, 2024, the Agency for public oversight of auditing published an opinion regarding the disclosure of legal transactions in the Related party report, prepared in accordance with paragraph 3 of Article 545 of the CA-1. The opinion adds to the instructions on how to prepare the report and audit it, since Agency noticed different (and incomplete) reporting in practice.
In its opinion, the Agency states that it is necessary to disclose every legal transaction between related parties and all other actions that the company did or stopped doing at the initiative or in the interest of these companies in the previous financial year. For each legal transactions, fulfilment and counter-fulfilment must also be stated, and in the case of actions, the reasons for them, benefits, and disadvantages for the company.
In exceptional cases, due to the nature of the business, it is possible to combine the disclosure of legal transactions in the report according to the same type of fulfilment and the same type of opposite fulfilment, indicating how the transactions are combined and the reason and criteria for combining.
In the future, the Agency will regularly monitor the implementation of the provisions of Articles 545 and 546 of the CA-1, with particular attention to the manner of disclosing and listing legal transactions and other acts in reports.
ADOPTED MEASURES FOR THE EU'S FIGHT AGAINST MONEY LAUNDERING AND FINANCING OF TERRORISM
As we informed you in the May edition of Tax news, on April 24, 2024, the European Parliament confirmed a package of proposed measures for a more effective EU fight against money laundering and terrorist financing, which also apply to the cryptocurrency sector and football clubs.
On May 30, 2024, the rules were also officially adopted by the Council of EU and will enter into force following their publication in the Official Journal of the European Union. The Anti-Money Laundering Regulation will become effective 3 years after its entry into force, whereas Member States will have 2 or 3 years to transpose the so-called Sixth Anti-Money Laundering Directive into their national laws. The supervisory body AMLA will start operations in mid-2025.
More information can be found at the following link.
PROPOSED CHANGES IN THE TAX LANDSCAPE
In the beginning of June 2024, the Ministry of Finance submitted for public consultation a package of proposed tax law changes. More information about the proposed measures can be found in the previously published Tax alert, which can be accessed by following this link.
