The Financial Administration of the Republic of Slovenia (FURS) has updated its detailed guidance concerning employee benefits, with particular attention given to share-based remuneration.
The updated explanations address different methods for determining the value of taxable income or benefits when employees receive shares as part of their remuneration.
FURS has also provided additional clarification for situations where shares are granted to an employee by a foreign company that is related to the employee’s Slovenian employer.
Such arrangements can raise questions regarding the calculation and payment of income tax as well as mandatory social security contributions.
Share-based remuneration is increasingly relevant for companies that use equity incentives to attract, retain and motivate key employees.
However, because the tax treatment can depend on the structure of the arrangement, companies should consider the tax and payroll consequences before implementing such incentive schemes.
👉 K2A Accounting recommends reviewing the tax treatment of more complex employee remuneration arrangements before benefits are granted, rather than addressing potential issues afterwards.