Norm-based taxation remains one of the most commonly used business models for small entrepreneurs in Slovenia due to its simplicity and relatively low tax burden. However, in recent years, tax authorities have significantly increased oversight of this system.
The Slovenian tax authority, FURS, is focusing particularly on cases where there may be a risk of disguised employment.
Risk factors include:
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working predominantly for a single client,
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operating under conditions similar to employment,
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economic dependence on one source of income,
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lack of independent organization of work.
In such cases, the tax authority may reclassify the activity as employment. This can result in:
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retroactive calculation of social contributions,
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additional taxation,
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penalties and interest.
There are also ongoing discussions about potential changes to the norm-based taxation system, which may lead to stricter conditions in the future.
➡️ Practical advice: Entrepreneurs should regularly review whether their business model still qualifies for norm-based taxation.
CTA:
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