The National Assembly has adopted the government’s proposed amendments to the Income Tax Act and the Pension and Disability Insurance Act, which will enable this year’s holiday payers to be relieved of income tax and contributions up to the level of the average salary.<\/p>\n
The adopted changes for 2019 apply to all payments of holiday pay. Employees who have already received a holiday allowance before the amendments came into effect are entitled to a refund of overpaid income tax and contributions. The refund will be carried out ex officio by the Financial Administration of the Republic of Slovenia, namely the income tax advance and the employee’s contributions will be returned directly to the employee, while the employer’s contributions will be returned to the employer. The refund will be made no later than thirty days after the service of the decision and on the condition that the recipient of the refund has no outstanding tax obligations.<\/p>\n
The amendment to the Income Tax Act stipulates that the annual leave allowance up to 100% of the average monthly salary (currently EUR 1,714.49 gross – February 2019) is not included in the tax base for the assessment of income tax, but it is determined also the procedure for refunding the already calculated and assessed income tax advance in 2019 in cases where employers have already paid the holiday allowances.<\/p>\n