Tax News, June 2025

In the June edition of our Tax news, we inform you about the second batch of informative tax calculations for the year 2024, about the approved draft amendment to the Anti-Money Laundering and Counter-Terrorist Financing Act introducing significant changes regarding access to data from the register of beneficial owners, and about the Supreme Court Ruling regarding the taxation of subsequent payments of purchase prices for a business share.

THE SLOVENIAN TAX AUTHORITIES ISSUED THE SECOND BATCH OF INFORMATIVE TAX CALCULATIONS FOR THE YEAR 2024 ON 30 MAY 2025

The Informative tax calculation is assembled according to the information available to the Tax Authorities based on official records, data on the income and dependent family members, which were reported to the Tax Authorities by payers of the income and individuals during the year.

The individual must carefully review the Informative tax calculation. If the individual does not agree with the tax calculation or finds that the given data is incorrect or incomplete, he must file an objection against Informative tax calculation and submit it to the competent tax office that issued the calculation no later than 30 days (15 days from received Informative tax calculation which is considered as received after 15 days from the dispatch) from the date the calculation was issued. Deadline for submitting objection is 30 June 2025. If the individual agrees with the data included in the calculation and finds that it is correct, no further action is needed. In such case, after the expiry of the deadline for filing an objection, the Informative tax calculation is considered as the final Annual income tax assessment for tax year.

Deadline for additional tax payment is 30 July 2025. Refund of overpaid tax should be transferred by 30 July 2025.

If the informative tax calculation is not issued by 15 June 2025, individual must file 2024 annual tax return by 31 July 2025 on his own.

SIGNIFICANT CHANGES REGARDING ACCESS TO DATA FROM THE REGISTER OF BENEFICIAL OWNERS

On 29 May, 2025, the Government of the Republic of Slovenia approved a draft amendment to the Anti-Money Laundering and Counter-Terrorist Financing Act, introducing significant changes regarding access to data from the register of beneficial owners.

According to the new proposal, the general public will only be able to access data from the register if they demonstrate a legitimate interest, which must be related to detecting and preventing money laundering and terrorist financing. Application for access must be submitted to the Agency of the Republic of Slovenia for Public Legal Records and Services (Ajpes).

Full access to the register will continue to be granted to obliged entities, such as banks, insurance companies, pension funds, brokerage firms, asset managers, as well as law enforcement authorities, courts, supervisory authorities (e.g., Bank of Slovenia, Securities Market Agency, Insurance Supervision Agency, Financial Administration of the Republic of Slovenia), and all state authorities when deciding on rights of entities with financial implications for the state budget.

The changes follow a November 2022 judgment of the EU Court of Justice, which found that unrestricted public access to sensitive personal data constitutes a serious intrusion into privacy and data protection. While the court emphasized the importance of public access for civil society and oversight of business transactions, it also stressed the need to protect personal data.

Additional changes introduced by the amendment include:

• Status of honorary consuls: Under the new proposal, honorary consuls will no longer be classified as politically exposed persons, which means they will no longer be required to report their assets and affiliations in detail to banks and state institutions.
• Expansion of recipients of feedback information: The amendment provides that feedback information may also be given to those who did not file a report but were requested to provide data, aiming to enhance the effectiveness of supervisory authorities.

The proposed changes represent an important step toward balancing ownership transparency and personal data protection. At the same time, they aim to improve the effectiveness of oversight in preventing money laundering and terrorist financing.

SUPREME COURT RULING REGARDING THE TAXATION OF SUBSEQUENT PAYMENTS OF PURCHASE PRICES FOR A BUSINESS SHARE

In its judgment X Ips 42/2024 dated 23 April 2025, the Supreme Court ruled that subsequent payments of business share payments related to the company's business performance should be treated as capital gains and not as other income. The judgment refers to a case from 2017 where a taxable person sold a business share and later received additional payments, all agreed in the contract.

During the inspection, the Tax Authorities treated these payments as "other income" and taxed them additionally, according to the income tax scale. The Supreme Court ruled that it was a part of the total purchase price, which was framed as a fixed and variable part, and therefore all payments should be taxed as capital gains, irrespective of the time of the transfer.

In their judgment, the Supreme Court clarified that the correct tax treatment is considered to be the moment of transfer of the business share and not the moment of payment. Since the Personal Income Tax Act (PITA-2) prior to 2020 did not contain a specific provision regarding subsequent payments of purchase taxes, such payment is considered to be capital income according to the Court's assessment. With the new point 5 of paragraph 4 of Article 90 of the PITA-2, the Act stipulates that such payments, which depend on the future performance of the company's operations, are treated as dividends.

The judgment sets an important precedent in the taxation of divestments of shares prior to a change in legislation. The Tax Authorities have announced that it will take the judgment into consideration in all pending proceedings pertaining to the period prior to 1 January 2020.