Text file: 9960.txt
author: Zvedaven
downvotes: 2
end consideration date: 2019-04-12
id: '9960'
number comments: 1
number views: 413
proposal type: Competent authority response
response: "Response from the Ministry of Finance\n\nAccording to the Income Tax Act\
  \ (Official Gazette of the Republic of Slovenia, No. 71/93, 2/94 - corrected, 7/95,\
  \ 14/96 - Decree of the US, 18/96 - ZDavP, 44/96, 87/97 - ZDavP-A, 1/99 - ZNIDC\
  \ and 54/04 - ZDoh-1), which was in force until 2005, the taxable amount of interest\
  \ on loans granted to natural and legal persons (op. interest received on a particular\
  \ loan and the revaluation interest calculated on the basis of the increase in retail\
  \ prices during the period for which the loan was granted. Since 2005, however,\
  \ the taxable amount of interest (including interest on cash deposits with banks\
  \ and savings banks) is generally determined as the amount of interest earned (i.e.\
  \ without reduction for revaluation interest).\n\nThis method of interest taxation,\
  \ which is also internationally comparable, was adopted for reasons of simplicity\
  \ of the system and also as a consequence of the banking system's switch to charging\
  \ interest on deposits and credits at nominal rates, thus bringing the banking system\
  \ into line with common practice in international finance.\n\nUnder the current\
  \ Income Tax Act (Official Journal of the Republic of Slovenia No 117/06 et seq.;\
  \ hereinafter referred to as \"ZDoh-2\"), interest earned by a resident of Slovenia\
  \ on cash deposits with banks and savings banks in Slovenia and other EU Member\
  \ States is taxed at a rate of 25% and the income tax thus established is considered\
  \ as a definitive tax, it being noted that only to the extent that the interest\
  \ exceeds EUR 1,000 per annum. If the interest does not exceed this amount, no income\
  \ tax is payable on such interest.\n\nUnder ZDoh-2, a resident taxpayer may also\
  \ elect to have the interest accrued over the period of the tax year included in\
  \ his tax base each year in the case of funds deposited and savings on account with\
  \ banks and savings banks established in accordance with the regulations in Slovenia\
  \ and with banks of other EU Member States, with a maturity exceeding one year,\
  \ where the taxpayer is unable to dispose of the funds saved before the expiry of\
  \ the date of the deposit or the expiry date of the savings without a substantial\
  \ reduction in the interest. The taxable person must notify the bank or savings\
  \ bank and the tax authority within the time limit and in the prescribed manner.\
  \ The taxable person's tax base on such interest is determined each year by taking\
  \ into account the above-mentioned non-taxable part of the interest (i.e. EUR 1\
  \ 000 per year).\n\nThe above-mentioned non-taxable part of the interest of \u20AC\
  1,000 is a flat-rate allowance which also takes into account, in whole or in part,\
  \ the inflation component in taxation. The allowance was introduced in a situation\
  \ of high interest rates and in order to exempt from taxation the majority of small\
  \ savers."
response date: 2019-05-07
response due date: null
sent date: 2019-03-22
title: Interest tax
upvotes: 16
url: https://predlagam.vladi.si/predlog/9960
