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05 December 2024

Slovenia's legislative changes impact mobility workers and Slovenian employees receiving income from HQ incentive share, option or cash-based awards

The Slovenian Parliament has confirmed changes to the Personal Income Tax Act and Tax Procedure Act. Effective 1 January 2025, new regulations will apply regarding the definition of payer of tax (i.e., withholding agent), primarily impacting outbound assignees or employees receiving share related incentive payments e.g., from group HQ. These changes may impact the cost profile of the Slovenian workforce, require employers to operate complex payroll procedures, potentially change incentive models, and necessitate the setup of HR-related processes to maintain a comprehensive compensation overview for assignees or employees.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2024-2216

 

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