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Slovenian National Assembly Approves Personal Income Tax Amendments — Orbitax Tax News & Alerts

Slovenia's National Assembly approved the Law on Amendments and Supplements to the Income Tax Act on 28 November 2022, which contains personal income tax amendments consulted on in August, including certain amendments that partially reverse amendments made by the Law of 11 March 2022. The main measures include:

  • Reversing the reduction in the top progressive income tax rate back to 50% from 45%;
  • Setting the standard personal allowance at EUR 5,000 for 2023, along with the repeal of the scheduled annual increases that would result in a EUR 7,500 allowance in 2025;
  • Increasing the maximum additional allowance for lower-income individuals from EUR 13,716.33 to EUR 16,000, along with a revised formula for determining the additional allowance, which is equal to EUR 18,761.40 - 1.17259 x total income;
  • Introducing a tax base reduction for employment income in the amount of EUR 1,300 per year for taxpayers up to the age of 29; and
  • Increasing the tax rate on rental property income from 15% to 25%.

The measures of the law, which must be published in the Official Gazette, will enter into force on 1 January 2023.