On 1 July 2021, the Regulation amending the tax treatment of reimbursements of expenses and other income from employment was published in the Official Gazette of the Republic of Slovenia.
The change does not affect the entitlement of employees to the amount of payment of transport costs, as the employee is entitled to reimbursement of costs in the amount arising from the internal acts of the employer, employment contract or collective agreement or corporate collective agreement. The amendment relates only to the different tax treatments of transport costs.
With the Regulation, the government intends to solve the problem of reimbursement of transport costs to and from work in view of the changed level of rights of public sector employees on the basis of the Agreement on Abolition of Austerity Measures in Reimbursement of Expenses for annual leave for 2021 and on this basis concluded annexes to collective agreements in the public sector.
Reimbursement of transport costs to and from work is not included in the tax base of employment income up to EUR 0.13 (previously EUR 0.18), for each full kilometre of the distance between the normal place of residence and the place of work (for each day of presence at work), if the place of work is at least one kilometre away from the employee's usual place of residence. The amount from the previous sentence is adjusted once a year with the growth coefficient of prices of fuels and lubricants for passenger cars for the month of October of the current year compared to October of the previous year, according to the Statistical Office. The correction shall be determined by the Ministry of Finance no later than December of the current year for reimbursement of transport costs to and from work for the following year.
Notwithstanding the preceding paragraph, the reimbursement of transport costs to and from work shall not be included in the tax base of income from employment up to EUR 30 per month or in the amount of a registered non-transferable monthly ticket (public transport) if the employee provides proof of purchase of this ticket. The amounts of reimbursement of costs from the previous sentence, which are not included in the tax base from the employment relationship, are recognized in proportion to the days of presence at work.
The changes apply to civil servants from June 2021, and for all others, they will apply to reimbursements for August 2021.
The regulation has been maintained, according to which the reimbursement of transport costs to work is included in the tax base of income from the employee's employment if he has the right to use a company car for private purposes and the employer also provides him with fuel for such use.
The arrangement for employees earning income from employment from abroad has also been maintained, namely the cost of transport to and from work is not included in the tax base up to EUR 0.18 for each full kilometre of the distance between normal residence and place of work. for each day of presence at work, if the place of performance of work is at least one kilometre away from the employee's residence.
The regulation has also been amended in the part relating to payments to apprentices for compulsory practical work. It is assumed that these incomes are not included in the tax base of employment income according to the year of schooling up to the amounts determined as the minimum amount of the apprenticeship award by the law governing apprenticeships. The regulation will come into force on the day of publication of the harmonized amounts of the minimum amounts of the apprenticeship award in accordance with the law governing apprenticeships, until then the Regulation in force before this last amendment applies.
Source: Official Gazette