EY Tax News, October 2021

Local contact

Matej Kovačič

8 Oct 2021
Subject Tax legislation
Categories Tax alert
Jurisdictions Slovenia

In this issue of EY Tax news we summarize the changes to the Transnational Provision of Services Act and highlight new requirements in the filed of environmental policy and taxes.

We included a short segment on the new EU Whistleblower protection directive, which requires enterprises to implement new safeguards into their business process by December 2021. This is a hot current topic tax and finance departments should be aware of, but you are also welcome to share the information with others in your company.


Amendments to the Transnational Provision of Services Act

In July 2021, the Transnational Provision of Services Act (the “Act”) was amended, in which Directive 2018/957/EU of the European Parliament and of the Council was transposed.

According to the amended Act, the user may also perform transnational provision of services with employees who have been seconded to them on the basis of an agreement with the employer to provide work (so-called agency workers), provided that the employment relationship is maintained between the employer for the provision of work and the employee for the entire duration of the posting.

Before starting the transnational provision of services, a foreign employer must register with the Employment Service of Slovenia, with all the necessary information prescribed by the amended Article 14 of the Act.

Among the important novelties is the period of posting itself. If circumstances arise during the posting period due to which the transnational service could not be performed / completed within 12 months, the foreign employer may extend the provision of services to 18 months if they make an appropriate application with a reasoned notification to the Employment Service of Slovenia. The application must then be approved by the Employment Service of Slovenia.

The foreign employer must ensure that during the transnational provision of the service in the Republic of Slovenia, the following documents are kept at the place of provision of the service, which must be available in the Slovenian language:

  •  a copy of the contract between the client and the foreign employer or a comparable act in the case of a posting to an associated company,
  • a certificate of registration of the commencement of the provision of services,
  • an extract from the relevant business register,
  • certificate of completed application, in accordance with the law governing handicraft business,
  •  a certificate of lawful establishment in the country of employment,
  • copies of employment contracts,
  • copies of payslips,
  • attendance records,
  • documents on health and safety at work,
  • proof of paid salaries or copies of equivalent documents for all posted workers,
  • A1 certificate.


How EY can help?

Our experts in the field of personal taxes and migration monitor all major changes in legislation on an ongoing basis. Changes bring new challenges, new definitions, and simplifications. If you need additional advice regarding the adopted novelties on transnational provision of services, or assistance with fulfillment of obligations in this area, our team of tax and legal experts is at your disposal.


Environmental policies and taxes

EU has been striving for changes in the area of plastic and packaging in accordance with European Strategy for plastics for several years. In January 2021 EU has introduced a levy, which member states will be obliged to pay directly to the EU. It will be calculated based on the weight of nonrecycled plastic packaging waste. Member states will also need to recycle 77% of collected plastics till 2025 and 90% of recycled plastics till 2029.

Some of the member states, such as Spain and Italy have started to pass or have used already passed legislation, containing obligation of companies to pay the levy. Such changes are expected to gradually happen in Slovenia too. On April 24, 2021 EU Plastics Regulation has come into effect, main goal being to change the scope of use of plastics and plastic waste. The regulation determines, which manufacturers are covered by the principle of extended liability and what is considered to be the placing of plastic in the market. From 4th of September 2021 government Decree on the prohibition of placing certain disposable plastic products on the market in the Republic of Slovenia and on the labeling of certain plastic products is in force.

Legal person or sole proprietor established in the Republic of Slovenia who is putting packaging on the market for the first time is already obliged to maintain record on putting packaging on the market. Nevertheless, Slovenia has not decided to change legislation on environmental taxes and obligation to pay the new levy has not yet been transferred on taxpayers.   


How EY can help?

EY teams can help you follow the trends and adjust to the changes, not only in Slovenia, but also in other countries. We can prepare analysis and evaluate effects of measures if your company or related parties use or put plastic on the market. Our experts can advise you regarding additional future steps and strategies to achieve your goals in the area of environment protection and fulfill environmental politics of your company. 


EY as »one stop shop« service provider

Today, companies face many challenges related to reporting and tax compliance, especially when working cross-borders, where it is important to consider and comply with different local legislations. On top of that, companies face additional challenges by transferring finance operations to shared service centers, e.g. to India. Due to ever-changing staffing needs, increased workload, or seasonal work you may require comprehensive support from experts.

EY Slovenia has a specialized team, dedicated to helping companies with all of the challenges mentioned above. We offer financial and accounting services, completely tailored to your business needs in terms of time, location, or method of implementaion.

Our tax experts will be happy to answer your questions

Contact us

Expert invitation

Whistleblower directive

From December 2021, under the new Directive (EU) 2019/1937 of the European Parliament and of the Council, companies will have to establish protection for persons reporting breaches of Union law.

The Directive, better known as Whistleblower Protection Directive, brings new requirements that companies will have to incorporate into their business framework. From December 2021 onwards, all EU Member States will have to provide protection to whistleblowers by establishing effective messaging channels within organisations with more than 250 employees and municipalities with more than 10 000 inhabitants.

Companies that choose to implement an appropriate system to protect whistleblowers face several dilemas, such as high costs, normative and procedural changes, staff needed to monitor and deal with breaches and, of course, the knowledge and experience to act appropriately after a perceived breaches.

With a comprehensive approach, EY can help address the following questions:

  • we can help companies select appropriate software solution provider for effective management of breaches and take care of application installation;
  • we can establish policies and procedures for reporting of breaches related to whistleblowers, that are compliant with the Directive (EU) 2019/1937 of the European Parliament and of the Council, adopted on 23 October 2019, on the protection of persons reporting breaches of Union law;
  • we can establish an appropriate whistleblowing procedure in line with the EU Directive (i.e. triage, case management and monitoring, and internal case investigation).

The establishment of effective compliance management requires an appropriate methodology, the use of the right tools and, above all, knowledge and experience. If you have any questions related to this issue or want to set up a meeting, contact us here and we will be more than happy to help.