Slovenia: Tax-Efficient Sectors
Tax-Efficient Business Forms
The corporate income tax rate of 17% (18% in 2012) is one of the lowest in Europe. Generous depreciation allowances and the ability to carry forward losses are additional incentives for investors. Foreign companies may apply for financial assistance in the form of grants by way of the FDI Cost-sharing Grant Scheme. In particular, grants are available for investments in production (industrial), strategic services, logistics, and research and development. The criteria to qualify for a grant stipulate that the minimum investment is EUR1m and that between 10 and 50 new jobs are created (10 in R&D). The grant may be up to 40% of the sum invested. A key proviso is that the company receiving the grant remains trading in Slovenia for between three and five years, depending on the size of the company.
It is possible to carry forward losses in any one accounting period for seven years, up to the amount of the tax base for each period.
Reduction of the taxable base of 100% is allowed for investment in R&D establishments. Venture capitalists may well attract a 0% rate if they meet the legal criteria. New companies may also attract tax relief of 40% of the amount invested in equipment and other assets.