Area: Finance
Competent authority: MF
EZU URL: .nan
Initiative ID: 423
Initiative accepted and completed: '2015-01-06'
Initiative classified in EZU: .nan
Initiative forwarded in response: '2014-12-10'
Initiative published: '2014-12-10'
Initiative submitted: '2014-12-06'
Response from the competent authority: 'Response of the Ministry of Finance and the
  Tax Administration of the Republic of Slovenia: the Regulation on Amendments and
  Additions to the Regulation on the Content and Form of the Withholding Tax Return
  and the Method of Submission to the Tax Authority (Official Gazette of the Republic
  of Slovenia, No 58/13) stipulates that the taxpayer shall report the deductions
  under the Income Tax Act - ZDoh-2, which are taken into account in the calculation
  of withholding tax, when paying out the income. In this way, it is possible to check
  the correctness of the withholding tax already at the time of submitting the REK
  form for employment income and thus to come as close as possible to the annual income
  tax. It is not foreseen to include the tax number of the dependent among the data
  to be reported at the time of each individual payment, as the obligation to report
  the data on the inter-annual claiming of the dependent relief on an annual basis
  remains.The inter-annual reporting of the data on the claiming of the relief includes
  a smaller set of analytical data than the annual reporting of the claiming of the
  dependent relief and is aimed at controlling the correctness of the calculation
  of the advance payment of the income tax. In fact, taxable persons have often indicated
  that the annual income tax assessment results in high surcharges due to incorrect
  calculation of the annual income tax surcharge by the employer in respect of individual
  payments of employment income, where the employer incorrectly takes into account
  the taxable person''s special and personal allowances. This concerns the information
  necessary to control the correctness of the withholding tax calculated on the submitted
  REK form: for dependent children, the year of birth and the relationship are reported,
  while for other dependants, only the number of dependants is reported. However,
  the reporting of other information on dependants (first name, surname, tax number,
  period of dependency, code) remains an annual obligation for payers, in a long-established
  format that meets the needs of the processes for the compilation of the income tax
  information return (hereinafter IID). This information would not add value in the
  inter-annual withholding tax returns in terms of controlling the correctness of
  the inter-annual withholding tax calculation. In terms of content, these data are
  only needed at the annual level in the process of compiling the IID, when the fulfilment
  of the statutory conditions for each dependent and the eligibility of the individual
  income tax payer to claim the dependants'' allowance are verified.If the data on
  dependants, which are reported annually in the current system, were to be included
  in the inter-annual reporting on the REK forms, and the annual reporting were to
  be discontinued, major programming adjustments would be required on the FURS forms
  and at the payers'' level. In addition, there would be a significant increase in
  the risk of IID correctness, especially in the case of data submitted on REK forms,
  payments of monthly income in several instalments and salary offsetting. The risk
  of the cumulative data thus compiled deviating from the actual claiming of dependants
  would therefore be increased, which would result in more objections being received
  against the IID.In view of the above, we consider that the current arrangement that
  the inter-annual reporting of data through the REK forms for the claiming of the
  dependants'' allowance contains only a set of data that are necessary for the ongoing
  control of the correctness of the calculation of the withholding tax or the income
  tax advance, and that the annual reporting of all data relevant for the annual determination
  of the dependants'' allowance in the context of the determination of the income
  tax liability at the annual level to the IID is still maintained, is appropriate.
  In our view, if the annual reporting of dependants were to be abolished, the risk
  for the correctness of the annual income tax liability calculations would be too
  high and would lead to an additional administrative burden for the taxpayer and
  the tax authority in terms of an increased number of objection procedures to the
  IID.'
Text file: 423.txt
Title: Amendment of the Regulations on the content and form of withholding tax returns
  and the manner of their submission to the tax authorities
URL: https://www.stopbirokraciji.gov.si/pobuda/?st=423
