Public Finance Balance Act. IB Express Service Slovenija 06/2012

Transcription

1 Public Finance Balance Act IB Express Service Slovenija 06/2012

2 In the end of May, the Act on the Balance of Public Finances was passed (Official Gazette RS, no. 40/2012; ZUJF), it affects as many as 39 thematically different laws. According to the Government, the purpose of the law is to ensure sustainable public finances and reduce the budget expenditure. Numerous cost-cutting measures stipulated by ZUJF affect the taxation. Among other things, ZUJF envissages a possibility of the General VAT rate increase, should the budget deficit for the year 2013 or 2014 exceed 3% of the gross domestic product. For the time being it is only provided that the General VAT rate shall not increase by more than 3% (art. 198 of ZUJF). In the following, we present the tax regulation changes that were passed. 1. HEALTH AND SOCIAL INSURANCE CONTRIBUTIONS The changes in this area were implemented on May 31st 2012 and are in force for an unlimited period The following changes and additions are specified in this Intervention Act (ZUJF): a) Lowering of health insurance contribution rate that is paid from the unemployment allowance. The health insurance contribution of the insured person is reduced from 6.36% to 5.96% and the health insurance contribution of the employer is reduced from 6.56% to 5.96%. The current health care contribution rate of health insurance premiums for the unemployment allowance, paid to unemployed persons, who until the entry into force of the ZUJF received the allowance for a temporary absence from work, remain unchanged. b) Setting the health care contribution rate for insured children under 18 years of age, who are insured from no other title The contribution rate is set at 5,96% of the current minimum wage amount. c) Setting the contribution rate of the health insurance contribution for certain insured persons that are entitled to parental protection The contribution rate is set at 5.96%. d) Establishment of new health insurance contributions that are paid from the partial allowance for lost income in accordance with the Social Security Act Regarding the fixed extent of rights for family attendant health insurance two new contributions are established, which are paid by the local communities: a health insurance contribution according to the rate of 5,96% and a occupational injury contribution at the rate of 0.18% of the sum of the partial allowance for lost income. 2. PERSONAL INCOME TAX Austerity measures which affect the Personal Income Tax Act (ZDoh-2) will be implemented on In ZUJF, following changes in this area are specified: a) Change of the margin amount of the net tax base between the second and third income tax bracket of the annual income tax schedule The margin amount between the second and the third bracket of the income tax scale is increased from to EUR.

3 Therefore, the following income tax scale is prescribed in ZUJF in article 118: Annual net taxation base in EUR Personal Income Tax in EUR % , % over % over 4.141, The marginal amounts of the net tax base in the schedule as specifed in art. 118 ZUJF will be adjusted in December of the current year for the following year (the first adjustment shal occur in December 2012 for the year 2013). b) A new, fourth Personal Income Tax bracket For the tax years 2013 and 2014, a new, fourth income tax bracket is introduced: its additional income tax rate is 50% for a net tax base from EUR. The amount of the net tax base will be adjusted in December of the current year for the following year (the first adjustment shall occur in December 2012 for 2013). c) Tax rate change in the Capital Gains Income Tax Capital Gains Tax rate for the first 5 years of the holding is increased from 20% to 25%. The tax rate of the Income Tax on interest and dividends is increased from the current 20% to 25%. This measure is in force for an unlimited period. 3. DERIVATIVE INSTRUMENTS GAINS TAX These changes will be implemented on January 1st 2013 and will remain in force for an unlimited period. For the holding period between 2 and 5 years, the tax rate increases from 20% to 25%. 4. MOTOR VEHICLE TAX The new (additional) tax prescribed by ZUJF will be implemented on July 1st 2012 and will remain in force for an unlimited period. A new tax, additional liability from the title of Motor Vehicle Tax is introduced, in the form of an additional tax / supplement. It is based on the engine capacity: for passenger motor vehicles (including campervans) from 2500 cc and for motorcycles, as well as three- an four-wheelers from 1000 cc. 1. Passenger cars (cc) Additional tax rate (%)

4 2. Three- and fourwheelers Additional tax rate (%) Regarding the tax liability from the title of this additional tax and other procedural issues, the provisions of the Motor Vehicle Tax Act apply. The new Monthly Report Form will be laid down by the Finance Minister. 5. CONCESSION FEE ON INCOME PAID TO STUDENTS These measures were implemented on June 1st 2012 and remain in force for an unlimited period. The tax base is the amount invoiced of the income from procurement of part-time jobs and casual employment jobs to students in the previous month. The tax liability applies to all organisations or employers who provide part-time and casual employment jobs to students on the basis of a concession contract. The rate of the license tax is 23%. The income acquired from the licence fee are to be reported by these organisations to the tax institution by the 18th day of the month, or, if this is a non-working day, on the first subsequent working day. The first report is to be be submitted by the taxpayers on July 18th ADDITIONAL WATER VESSEL TAX These changes will be implemented on January 1st 2013 and will remain in force for an unlimited period. In this additional tax, the tax liability for vessels with the length of 5 to 8 m is lower than the standard tax rate of the Water Vessel Tax; for the vessels longer than 12 m the tax liability is equal for the standard tax and for the additional tax. The additional tax is calculated according to art. 5 of ZDVP (Act on the Taxation of Water Vessels), whereby the following amounts are taken into account for the purpose of the additional obligation: - If the length of the vessel from 5 to 8 m, the general tax liability is 2,00 EUR, the tax liability per metre of the vessel is 0.50 EUR and the tax liability per KW of engine power of 0.10 EUR - If the length of the vessel is between 8 and 12 m, the general tax liability is EUR, the tax liability per metre of the vessel is EUR 2.00 and the tax liability per KW of engine power 1.00 EUR - If the length of the vessel is over 12 m, the general tax liability is EUR, whereas the tax liability per metre of craft is EUR 3.50 and the tax liability per KW of engine power is 2.00 EUR. The tax liability based on the operating life of the vessel is reduced by 5% for each completed year of the operating life of the vessel, while the remaining liability must not be less than 50% of the tax liability for a new vessel. The provision on the reduction of the tax liability for each year of operating life of the vehicle and the operating life of the engine is deleted. 7. NEW TAXATION OF PROFITS FROM THE TRANSFORMATION OF LAND USE The new tax was implemented on May 31st 2012 and is in force for an unlimited period.

5 Subject to this tax are sellers of a property, which at the time of sale is classified as building land. The tax base consists of the differential amount between the land value at the time of the sale, reduced for its disposal costs, and the land value increased for the acquisition costs. For the calculation of acquisition costs and disposal costs, ZDoh-2 (Personal Income Tax Act-2) applies analogously. The following rates are specified by ZUJF: -25% if less than a year has passed between the conversion of land use in a plot of building land and the sale of the property -15%, if 1-3 years have passed between the conversion of land use in a plot of building land and the sale of the property -5%, if 3-10 years have passed between the conversion of land use in a plot of building land and the sale of the property The tax return is to be submitted by the taxpayer on the Standard Form for Tax Return on Capital Gains Income Tax, within 15 days after the tax liability is incurred. The tax liability begins with the day on which the sales contract is concluded. The tax is assessed within 30 days from the day on which the tax return was submitted. 8. NEW REAL ESTATE TAX ON HIGH-VALUE PROPERTIES The new tax was implemented on May 31st 2012 and is in force for 2012, 2013 and Subject to this tax is real estate on the territory of the Republic of Slovenia according to the state on of the year for which the tax is assessed (for the tax year 2012, on the first day of the first month following the month of entry into force of the ZUJF), viz. the properties recorded in the Real Estate Register, belonging to same owner if their combined value amounts to at least EUR 1 million. As Real Estate in the sense of the previous clause, all properties except those which are used for business purposes, as well as industrial and public activities, are considered to be taxable Real Estate. Subject to this tax is any natural person or legal entity registered in the Real Estate Register as a real estate owner (for the tax year 2012 on the first day of the month following the month of entry into force of the ZUJF). The tax base is the sum of the generalized market value of real estate that belongs to the same owner and is assigned to real estate in the Real Estate Register on of the year for which the tax is assessed(for the tax year 2012, on the first day of the month following the month on which ZUJF entered into force). The following rates are specified in the ZUJF: - 0.5%, if the taxable base is between EUR 1 million and 2 million, - 1.0%, if the taxable base exceeds EUR 2 million; for 2012, the taxable base is reduced by 50%. The real estate tax for the current year is assessed by the tax institution on the basis of information about real estate, owner/administrator of the real estate and generalized market value of real estate, as they were recorded in the Real Estate Register on January 1st of the year, for which the tax is assessed. The tax is assessed by the Tax Body issuing the assessment by May 31st for the current year. For the year 2012, the Tax Body must issue the assessment within 3 months from the date of entry into force of ZUJF.