INTERNATIONAL EXECUTIVE SERVICES
Slovenia Planning Your International Transfer TAX
Slovenia: Planning Your International Transfer
Coming to Slovenia on Assignment __________________________________ Entry Requirements_______________________________________________ Living in Slovenia_________________________________________________ Investment in Slovenia ___________________________________________ Exit and Re-Entry Requirements __________________________________ Leaving Slovenia after an Assignment ___________________________
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Leaving Slovenia for an Assignment _________________________________ 9 Exit and Entry Requirements ____________________________________ 10 Arrangements While You Are Overseas _________________________ 11 Coming Home to Slovenia _______________________________________ 13 KPMG in Slovenia ___________________________________________________ 14 Consular/Embassy Information ______________________________________ 15
Planning Your International Transfer 1 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Coming to Slovenia on Assignment
Introduction This section is designed for individuals who are transferring to Slovenia. It presents a general outline of the practical matters, which employers and employees should consider with respect to an international assignment. This publication serves as a companion to our main publication, Taxation of International Executives, which, if available, covers general taxation information for Slovenia. KPMG member firms offer a full range of services to international executives being transferred between countries. This document was designed to help assist the international executive settle into Slovenia as quickly and effortlessly as possible. Please note that the information herein provides only a general guide to the issues to be considered when transferring to Slovenia. Please seek professional advice in the light of your personal circumstances.
Planning Your International Transfer 2 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Entry Requirements Entering Slovenia Following Slovenian entry to the EU on 1 May 2004, Slovenia began to execute, in part, provisions of the Schengen legal system, covering the area of visa policy and the prevention of illegal immigration. Citizens of the Republic of Slovenia have, as citizens of the EU, facilitated border-crossing procedures with all other EU Member States. For Slovenian citizens, the Austrian, Italian, and Hungarian border officials only check the validity of documents for border crossing, while at airports in EU member countries they can pass through controls intended for EU citizens, where only the validity of documents is checked and other conditions for entering the EU, which apply to citizens of third (non-EU) countries, are not required. Citizens of certain countries need an entry visa (the list of countries is published on the Web site of Ministry of Foreign Affairs). Visas are issued by Embassies of Republic of Slovenia abroad. A foreign citizen may stay in Slovenia three months in a period of six months without a residence permit. If the period of staying is longer, the resident permit should be issued to the foreign citizen. After arrival in Slovenia, a foreign citizen has to register his/her address at the competent local administrative unit (upravna enota (UE)). According to the European concept of free movement of workers, EU-citizens do not need a working permit in Slovenia. Only registration of performance of services is required. However, citizens of non-EU countries need to have a valid working permit. There are various types of work permit depending on the circumstances of a specific case. In general, a person who receives income in Slovenia or income for the work performed in Slovenia is obliged to register with the Slovenian tax authorities. Registration form and instructions for its completion are available on the Web site of the tax authorities: www.uradni-list.si/files/RS_-2007-120-06095-OB~P001-0000.PDF.
Tax registration form should be sent to the address below. Davcni urad Ljubljana Davcna ulica 1 1000 Ljubljana With regard to social security registration, this is required for the individuals locally employed. The registration form is M-1 and should be filed with Zavod za zdravstveno zavarovanje Slovenije, Miklošičeva cesta 24, Ljubljana or local health offices: www.ponudba-obrti.com/upload/files/Obrazec_M1_(pdf).pdf. A foreign citizen who is considered a tax resident in Slovenia and receives salary from abroad needs to report the income achieved by performing services in Slovenia to the tax authorities. During the year tax advances are payable on the basis of prepayment tax return. The form and instructions for its completion are available on the Web site of the tax authorities: www.uradni-list.si/files/RS_-2006-138-06005-OB~P001-0000.PDF. The annual tax return filing deadline for resident taxpayers is 31 July for the previous year. The annual tax return form is available on the Web site of the tax authorities: www.uradni-list.si/files/RS_-2009-114-05201-OB~P0020000.PDF and instructions for its completion: www.durs.gov.si/fileadmin/durs.gov.si/pageuploads/Davkipredpisi_in_pojasnila/Dohodnina/Dohodnina_2009/NAVODILO_ZA_NAPOVED-2009.pdf. Foreign Exchange Regulations Foreign currencies can be exchanged at the daily exchange rates. Credit cards are acceptable almost everywhere. There are not restrictions on the import and export of both the Euro (EUR) and other foreign currencies.
Planning Your International Transfer 3 © 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Living in Slovenia Currency The official Slovenian currency is Euro (EUR). Office and Retail Hours z
Office: open from 8:00 a.m. until 4:00 p.m., except Wednesdays which are open until 5:00 p.m.
z
Retail: open from 7:00 – 8:00 a.m. until 7:00 – 8:00 p.m., in shopping centers 9:00 p.m.
Bank Accounts Banks will exchange foreign currency and travelers checks for Euros and vice versa. Foreign residents may open Euro and foreign currency accounts, and it is possible to send money orders and transfer payments. Changing money is also possible at exchange offices in hotels, gasoline stations, tourist agencies, supermarkets, and numerous small exchange offices. Hours of operation: z
Weekdays: 8:30 a.m. -12:30 p.m. and 2:00 p.m. - 4:30 p.m.
z
Saturdays: 8:30 - 11:00 a.m. or 12:00 p.m.
Health Services Health services are provided by primary health care centers in municipalities, in regions, in hospitals, and in clinic centers in Ljubljana (capital) and Maribor. The basic scope of health services is covered by the compulsory health insurance. However, most of the Slovenian citizens have also additional health insurance in order to have extended scope of services. Driver’s License Alien who has a valid driver’s license can drive with it in Slovenia, by reciprocity, until one year from the announcement of the residence in Slovenia. A driving license which is not in accordance with convention of the road traffic (Official Gazette of the Republic of Slovenia, MP 9-55/92) is not valid in Slovenia. These drivers must have an international driving license. An alien, who would have permanent or temporary residence for more than 6 months, can apply for the replacement of the foreign driving license to a Slovene one. The practical test must be passed by. If in one year after the announcement of the residence in Slovenia foreign driving license is not replaced with Slovene one, the driving with foreign one will not be permitted any more. Motoring Associations In Slovenia Automobile Association of Slovenia (AMZS) is operating. This is association which provides several services, among other also help on the roads, road information, service, insurance, and education for driving license, and so on. Education The nine-year basic education is divided into three-year cycles (the first six years as primary education, the final three years as lower secondary education). Elementary schools provide a compulsory and extended curriculum. The compulsory curriculum must be provided by schools and studied by all pupils. It consists of compulsory subjects, electives, home room periods, and activity days (culture, science, sports, and technology). Upper secondary education includes vocational and technical programs preparing students predominantly for labor, and general secondary programs (gimnazija) preparing students predominantly for further studies. Programs in secondary education vary in content, duration, and goals. Like some other EU countries, Slovenia opted for a gradual implementation of the Bologna reform at the University, so that by the academic year 2009/10, only so-called post-reform programs will be offered. Until then Slovenian higher education institutions will offer both pre and post-reform programs.
Planning Your International Transfer 4 © 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
For public schools, no school fees have to be paid. Transportation The most popular transport in Slovenia is a car. Also, public transport (buses) is accessible in all cities. Railway is available in general in all landscapes in Slovenia, also the bus transport between the cities. Tickets can be purchased at the railway stations or inside the trains or buses.
Planning Your International Transfer 5 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Investment in Slovenia Several investment options are available to individuals living in Slovenia , however, they are not designed to help reduce taxes for resident taxpayer except additional voluntary pension insurance.
Planning Your International Transfer 6 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Exit and Re-Entry Requirements An alien has to announce at the competent immigration authorities the date of leaving Slovenia. He/She can come back under the conditions related to the entering of Slovenia (please see section titled Entering Slovenia). If an alien is considered a tax resident in Slovenia, he/she should file a tax return before departure from Slovenia.
Planning Your International Transfer 7 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Leaving Slovenia after an Assignment If an alien has still valid working permit, it should be returned to the employment office. Also the announcement of the end of the work should be made at the employment office. A foreign citizen has to announce at the local administrative unit that he/she is leaving Slovenia. If applicable, he/she has to file the income tax return at the tax authorities of Slovenia before departure from Slovenia.
Planning Your International Transfer 8 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Leaving Slovenia for an Assignment
Introduction This section is designed to help people who are being posted from Slovenia (the home country) to work in another country (the host country). It aims to give you a general outline of the practical matters which you and your employer should consider in regard to your posting. Please note that the information herein provides only a general guide to the issues to be considered when transferring abroad. Please seek professional advice in the light of your personal circumstances.
Planning Your International Transfer 9 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Exit and Entry Requirements Passport Before leaving Slovenia you should ensure that you have a current passport that is valid until the end of your expected foreign stay. This will avoid the problem of trying to obtain a new passport while overseas. Special Circumstances for Certain Host Countries For some countries, you will also require a visa or other form of entry permit. The consulate of the relevant country will be able to supply you with details of the procedure for obtaining a visa or other permit.
Planning Your International Transfer 10 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Arrangements While You Are Overseas Home/House If your home is subject to a mortgage from a bank or other financial institution, you will need to make arrangements to have repayments made while you are away. Personal Mail Before leaving Slovenia, you should make arrangements to have all mail forwarded to an alternative address. Power of Attorney You may wish to give a friend or relative or your solicitor a power of attorney to sign documents, etc. on your behalf while you are away. Will It is advisable to make a will if you have not already done so. Medical Coverage You should arrange a medical examination for you and your family well before departure. Absence from the home country for a period of time may result in loss of coverage. You should check on the benefits offered in relation to overseas services by any private health cover you may already have. You are strongly advised to ensure you arrange appropriate cover in your destination country, including evacuation insurance for under developed countries, as medical costs are significant in many overseas countries. Driver’s License You should check whether your Slovenian driving license would be valid in the host country. If not, you will need to find out what the requirements are for obtaining a local license. Education If your children are accompanying you overseas, you will need to make arrangements to have them enrolled at an appropriate school. There are international schools at most major international centers. Banking Before you travel, you should check whether your bank has branches or affiliates in the host country, and whether any changes are necessary to your banking arrangements in order to give you local access to your funds. Investments If you become a non-resident you should notify your bank, investment institutions, and the appropriate share registries in respect of shares you have in Slovenia companies, the date from which you become a non-resident. The institution will then be aware of any special steps that need to be made on your behalf. In this regard, sample letters can be provided at your request. Share Options You should take specific advice regarding participation in any employee share or share option plans, as your leaving Slovenia could present tax-planning opportunities. Insurance Policies If your home is let while you are away, you should notify your insurer that the property is no longer owneroccupied. You can continue to pay premiums to your life insurance company in respect of your life assurance policy; however, you should notify the company and ascertain whether you will be covered by the policy while you are overseas.
Planning Your International Transfer 11 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Pension Arrangements This is another area in which it is very important to seek specific advice. Depending on your situation, it may be critical that you seek specific advice prior to leaving Slovenia. You should check any tax liabilities that may arise in the foreign country in respect to contributions that are continuing to be made into a Slovenia fund and earnings in respect of this fund while you are overseas. You should also check whether your assignment would affect any entitlements you may already have accrued.
Planning Your International Transfer 12 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Coming Home to Slovenia Slovenian citizen has to announce the Administrative Unit the date of leaving Slovenia, if he/she goes abroad for more than three months. If he/she comes back to Slovenia for more than 60 days or for permanent staying, he/she will have to announce the arrival as well.
Planning Your International Transfer 13 Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
KPMG in Slovenia
Ljubljana Drobnič Nada KPMG Poslovno svetovanje, d.o.o. Železna cesta 8/a 1000 Ljubljana Slovenia Tel. +386 (1) 420 11 49 Fax +386 (1) 420 11 58 e-Mail: ndrobnic@kpmg.com
Planning Your International Transfer 14 © 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Consular/Embassy Information
Australia KONZULAT AVSTRALIJE 1000 LJUBLJANA Dunajska cesta 50 Tel. +01-425 42 52 Fax +01-426 47 21 e-Mail: austral.cons.s1ovensio1.net
Belgium VELEPOSLANIŠTVO KRALJEVINE BELGIJE 1000 LJUBLJANA Trg republike 3/IX Tel. +01-200 60 10 Fax +01-426 63 95 e-Mail: ljubliana@diplobel.org
Brazil VELEPOSLANIŠTVO FEDERATIVNE REPUBLIKE BRAZILIJE 1000 LJUBLJANA Kongresni trg 3 Tel. +01-244 24 00 Fax +01-2442420 e-Mail: mail@brazil.si
Canada KONZULAT KANADE 1000 LJUBLJANA Trg republike 3 Tel. +01-252 44 44 Fax +01-252 33 33 e-Mail: canada.consuLljubljana@siol.net
France VELEPOSLANIšTVO FRANCOSKE REPUBLIKE 1000 LJUBLJANA Barjanska cesta 1 Tel. +01-479 04 00 Fax +01-479 04 10 e-Mail: ambafrancesi@siol.net
Planning Your International Transfer 15 © 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
Germany VELEPOSLANIšTVO ZVEZNE REPUBLIKE NEMčIJE 1000 LJUBLJANA Preemova cesta 27 Tel. +01-479 03 00 Fax +01-425 08 99 e-Mail: germanembassy-slovenia@siol.net
Japan VELEPOSLANIšTVO JAPONSKE 1000 LJUBLJANA Trg republike 3/XI Tel. +01-200 82 81 Fax +01-251 1822 e-Mail: info@embjp.si
Netherlands VELEPOSLANIšTVO KRALJEVINE NIZOZEMSKE 1000 LJUBLJANA Palaèa Kapitelj Poljanski nasip 6 Tel. +01-420 14 61 Fax +01-420 14 70 e-Mail: lju@minbuza.nl
South Africa KONZULAT REPUBLIKE JUNEžAFRIKE 1000 LJUBLJANA Praakova 4 Tel. +01-200 63 00 Fax +01-200 64 34 e-Mail: janez.pergar(kornpas.si
Switzerland VELEPOSLANIšTVO ŠVICE 1000 LJUBLJANA Trg republike 3/VT Tel. +01-200 86 40 Fax +01-200 8669 e-Mail: lju.vertretung@eda.admin.ch
United Kingdom VELEPOSLANIŠTVO ZDRUŽENEGA KRALJESTVA VELIKA BRITANIJA IN SEVERNA IRSKA 1000 LJUBLJANA Trg republike 3/IV Tel. +01-200 39 10 Fax +01/425 01 74 e-Mail: info@british-ernbassy.si
Planning Your International Transfer 16 © 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Slovenia
United States VELEPOSLANIšTVO ZDRUžENIH DRžAV AMERIKE 1000 LJUBLJANA Preernova cesta 31 Tel. +01-200 55 00 Fax +01-200 55 55 e-Mail: usembassyljubljana@state.gov
Planning Your International Transfer 17 © 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. The material contained within draws on the experience of KPMG tax personnel and their knowledge of local tax law in each of the countries covered. While every effort has been made to provide information current at the date of publication, tax laws around the world change constantly. Accordingly, the material should be viewed only as a general guide and not be relied on without consulting your local KPMG tax adviser for the specific application of a country's tax rules to your own situation.
Š 2010 KPMG poslovno svetovanje, d.o.o., a Slovenia limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.