Reimbursement of wage compensation belongs to employers who pay their employees compensation for posting to work, or to workers who are at home due to force majeure. In addition, only employers who estimate that their revenues will fall by more than 20% in the first half of 2020 compared to the same period in 2019 are eligible for the measure.
For the Eligible Employers
The eligible employer claims the reimbursement with an application submitted to the HIIS, and on the day of submitting the application it may not have unpaid due mandatory duties and other monetary non-tax liabilities recovered by FURS (on the day of submitting the application it must also have submitted all tax deductions for employment income for the last 5 years).
The first line shows the amount of possible tax relief for a given number of children in the family. This is the amount by which parents can have their tax base reduced. As their tax base is reduced, their tax is also reduced as a result. The reduction of this tax, however, depends on the tax rate at which you should pay tax on that part of the tax base which is deducted from their tax base due to the tax credit. For better performance, the second row of the table shows the tax reduction in the event that the withholding tax would be levied at a rate of 16%, and in the third row for the case that the withholding tax would be levied at a rate of 41%, which for many most taxpayers have the highest tax rate. Using the tax calculator is essential in this matter.
Can you claim an exemption from contributions from salary compensation paid?
Employers who are entitled to a refund of compensation paid for waiting for work due to the consequences of the epidemic, or due to force majeure, can claim exemption from all social security contributions, from 13.3 until 31.5.2020, but at most until the compensation of the salary in the amount of the average salary for 2019 in the Republic of Slovenia, calculated per month.
Running of deadlines for performing procedural actions of taxpayers
Does the epidemic interrupt the deadlines for procedural actions, such as deadline for appeal, objection, filing various tax returns, etc.?
The running of deadlines during an epidemic is regulated by the ZZUSUDJZ, which stops running deadlines in matters that are not urgent. This means that for urgent matters (tax assessment, customs procedures, submission of accounts, write-offs, deferrals and installments), the deadlines will run smoothly. For all other matters that are not urgent (eg inspection and misdemeanor proceedings), the deadlines do not run, which means that the parties can fulfill their obligations after the termination of the measures.
Conclusion
Tax relief for children is an important family policy measure that complements the child allowance. In Slovenia, they are regulated in such a way that they reduce the tax base and consequently the amount of tax we have to pay. They are arranged progressively so that the relief for each subsequent child is greater than for the previous one. The following table shows the tax benefits for different numbers of children and their lowest and highest possible impact on an annual basis.