**Change of the Corporate Tax Rate in 2024: What You Need to Know**
The year 2024 will bring an important change for legal entities in Slovenia, as the general corporate tax rate will increase. The current rate of 19% will rise to 22% from the new year. This change will apply up to and including 2028, which means that legal persons will have to adapt to the new tax burden for a period of five years.
Why Change?
The increase in the corporate tax rate is a direct consequence of the adoption of the Law on Reconstruction, Development and Provision of Financial Resources (LORZFS), which entered into force on 23 March 2010. December 2023. The aim of the law is to provide funding for the reconstruction and rehabilitation of the damage caused by the recent floods. The higher tax on profits will help companies to finance restoration projects and measures, which represents an additional financial burden of around €250 million per year.
When will I have to pay more tax?
It is important to note that the higher corporation tax will only be payable in 2025, based on the profits made in the 2024 financial year. This means that companies still have time to prepare and adapt to the new financial situation.
How can companies reduce their tax burden?
Despite the increase in the tax rate, the legislation gives companies various options to reduce their tax base. These include investments in operations, recruitment of new staff, investments in the green or digital transition and donations. These options not only help to reduce the tax burden, but also encourage businesses to contribute to wider social and economic well-being.
Conclusion
The change in the corporate tax rate represents a significant financial challenge for companies, but also offers opportunities to adapt and take advantage of tax reliefs. Businesses need to be proactive in planning their financial strategies to minimise the impact of higher tax on their business, while considering opportunities to contribute to wider society through investments and donations. In times of change, it is crucial that companies are well informed and take advantage of all available options to optimise their tax position.
