Matej Kovačič, Tax leader at EY Slovenia, on governmental measures to support Slovenian economy and people
"Yesterday, the government of the Republic of Slovenia adopted a package of "anti-coronavirus" measures. These measure will be in force starting with the date the epidemics was declared and lasting until the end of May, possibly event longer. The package includes support for the economy as well as for individuals. The focus is on protecting jobs and worker's income during this period, which includes relief measures for employees when it comes to employment costs, fixed costs and the entire financial burden of the companies during this time.
The proposed measures offer relief to the furloghed workers and those who cannot do their work due to force majeure - they are entitled to a salary compensation of 80 percent of the average monthly full-time salary for past three months in accordance with the Employment Relationship Act (ERA), but not lower than the minimum Slovenian salary. Employers who will continue to employ workers during the epidemics measures will be exempt from paying pension and disability insurance in April and May 2020. They will still have to account and report these contributions, but will not have to pay."
Mojca Lukač, head of personal taxes in EY Slovenia, on "anti-coronavirus" measures
"This is a welcome relief for all employers who are struggling to pay the salaries to their employees as well as for all employees who are worried about their job security in this period when several companies have had to pause or severly limit their activities."
"The Act also addresses all self-emplyed individuals whose income has dropped by at least 25 % compared to the previous month. They will receive a monthly basic income for three months, EUR 350 for March and EUR 700 for April and May."
"The "anti-coronavirus" package also covers sick leave benefits, which wil be fully covered by compulsory health insurance and changes of advance payments of personal for the self-employed or corporate income tax. The workers who have court or tax foreclosure will not pay them in the period when the Act is in force and the payment deadlines when the creditor is a public authority is extended to 60 days. The deadlines for submission of reports have been extendend and insurance agencies may submit an annual report and an auditor's report on the auditing of the annual report to the Insurance Supervision Agency no later than five months after the end of the calendar year."
Matej Kovačič, EY Slovenia Tax leader, on »anti-coronavirus« measures
»This package will increase the cashflow in companies which is most welcome and shows that the government has listened to the companies who are faced with an unpredictable situation. It is clear that the currently adopted measures are not the last of it and that a new package with additional relief measures is being prepared. The situation we are in demands careful steps in the right direction."
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