At the beginning of this year, there were more than 56,000 ICs with normalised expenses in Slovenia, almost half of whom are ICs with afternoon activity. Anyone with an annual income of up to 100,000 euros (IC with afternoon activity up to 50,000 euros) can enter the standard taxation system, while the tax now amounts to 20 percent on the tax base, which is 20 percent of income – so those with a standard rate now pay a tax in the amount of four percent of their income revenues. In addition, of course, they also pay contributions, which currently amount to 425 or 77 euros. The current government announces an “increase in tax fairness”, which means that ICs with normalised expenses will pay more tax. How much more, Finance media portal announced.
“We would keep the system of ICs with normalised expenses, but it needs to be renovated with the aim of increasing tax fairness,” Robert Golob told Finance before the elections – although after the elections there was also talk of their possible abolition – the SD party had previously supported this move. Golob believed at the time that any taxation system must be equally fair to all types of taxpayers and that it is not appropriate to place any of the groups in privileged positions compared to the others. “We agree with the conclusion that the system, as it is now, is not fair to the other subjects on the market, so we are planning to reform the taxation of ICs with normalised expenses with the aim of increasing tax fairness,” he emphasised.
On the other hand, Janez Janša believed at the time that ICs are properly taxed, but more attention should be paid to the control of operations related to ICs with the aim of limiting the chaining and spill-over of revenues, whereby some avoid paying taxes. He also believed that special attention should be given to controlling employers from exploiting workers by working through IC or other forms of work. The voters then decided and now we are there – a proposal was presented to the Economic and Social Council (ESS), according to which the ICs with normalised expenses would be taxed more than now. For the majority, they would recognise less normalised expenses than 80 percent of revenues, as is the case today, wrote Finance, who have not yet received official data from the Ministry. Nevertheless, the portal published some unofficial information, which is summarised below.
ICs with normalised expenses, who have at least one fully insured employee, would be divided into two categories – those with an annual income of up to 25 thousand euros would not change anything. However, they would increase taxes on those with incomes between 25 and 100 thousand euros: Instead of 80 percent of normalised expenses, only 50 percent of expenses would be recognised, i.e., instead of 20 percent of income, the tax base would be 50 percent. An individual with an income of 50,000 euros currently pays 2,000 euros in tax in addition to contributions (20 percent of the tax base of 10,000 euros), but now, in addition to contributions, they would pay 3,500 euros in tax.
A person with an annual income of 50,000 now has – if the contributions amount to 5,000 euros per year – a net amount of 43,000 euros; according to the new rules, they would only have 41,500 euros left. If the contributions were twice as high, the person would now have 36,500 euros left, while they now have 38,000 euros, Finance calculated and added a comparison: if a full-time employee costs the employer 50,000 euros per year (gross, considering costs for lunch and transportation), his net income is around 28,000 euros.
In the case of IC with normalised expenses and afternoon activity, instead of 80, the state would recognise 50 percent of normalised expenses, or a maximum of 25 thousand euros of normalised expenses. Currently, those who receive a maximum of 50,000 euros in income per year can be in this system, but they have to pay another 80 euros in contributions per month. This group’s tax would increase by 3,000 euros. Minister Klemen Boštjančič has said several times that because of the anomalies in the system, regular employees should be taxed more – that is, that they should be unified with the taxation of ordinary employees, reported Finance.
By: Sara Bertoncelj
