On 11 March 2022, the National Assembly of the Republic of Slovenia approved the new Personal Income Tax Act (Zdoh-2Z), which was published in the Official Gazette on 21 March. The new Act is effective as of 22 March 2022 and is applicable as of 1 January 2022.
The new Act brings several changes to taxation of individuals. One of the changes is the decrease of the tax on capital gains, dividends and interest from 27,5% to 25%.
The tax decrease will impact the income for resident individuals on:
- Capital gains
This change also impacts the withholding tax rate on dividends and interest paid to financial intermediaries who are not the beneficial owners of such income and the withholding tax shall be charged, deducted and paid according to the rate defined under the taxation act which defines a higher rate of withholding tax on income paid.
The tax decrease will impact the income paid via foreign financial intermediaries on:
- nterest on corporate bonds
The following income payments are impacted:
- Payments made to foreign financial intermediaries without the Authorised Foreign Intermediary status.
- Payments made to foreign financial intermediaries with the Authorised Foreign Intermediary status who do not disclose beneficial owners of the income.
Impact on investors: Withholding tax rate on income paid to undisclosed beneficial owners via foreign financial intermediaries decreases from 27,5% to 25%.