Ljubljana, 06 March (STA) - The Finance Ministry published on its website on Tuesday draft changes to the laws on personal and corporate income taxes envisaging tax breaks for companies, sole proprietors and individuals, as part of the government's plans to enable cuts tax cuts through some EUR 150m in public spending cuts, the ministry said.
The changes to the corporate income tax law aim to decrease the corporate tax rate by two percentage points in 2012 and by further three points over the following three years, lowering the corporate tax rate to 15% by 2015.
What is more, both the changes to the corporate and personal income laws envisage a 100% tax break for investments in research and development, while eliminating special regional tax breaks for such investments.
"The purpose of this measure is to additionally stimulate investments in R&D, while cutting the red tape for the taxpayers," the ministry noted.
The Finance Ministry would also increase the general tax break for investments by 10 percentage points to 40% of the value of the investment, while it would also move the total cap of the relief for companies from EUR 30,000 to EUR 60,000.
This is the first step towards a 40% unlimited investment tax relief for companies, while it is necessary to implement it gradually due to the simultaneous pursuing of the public financial consolidation goal, the ministry added.
The changes to the personal income tax meanwhile also envisage that the threshold for the highest tax bracket would increase from the current EUR 15,681.03 to EUR 18,716, so that the 41% rate would burden those who have revenues higher than 1.5-times the average Slovenian pay.
The changes, which are to take effect on 1 June, are valued at some EUR 154m, while the ministry explained that some of the effects would be seen already in 2012, while others would only be registered in 2013.
The Finance Ministry believes that the changes will "boost liquidity of companies and private spending, thus helping to jump-start the economy".