The AmCham Finance Committee advocates for a predictable and competitive business environment in which companies have the opportunity to develop and grow, and where the tax and financial framework supports rather than hinders them.
Key areas of the Committee’s work
A Stable and Predictable Tax Policy for a More Competitive Slovenia
The stability and predictability of the tax environment are crucial for attracting investment, driving economic growth, and ensuring long-term competitiveness. Rapid, ill-conceived measures and additional burdens on the economy do not contribute to these goals, but instead increase pressure on companies, individuals, and particularly the middle class. In the long run, this results in fewer resources for essential public services such as education and healthcare.
We thus propose a tax policy aligned with the Slovenia Development Strategy 2030, which promotes a high-productivity economy, value creation, and research and development (R&D). Tax policy is a key factor in determining which jobs, investors, and industries we attract and, more importantly, retain in Slovenia. In recent years, we have witnessed a trend of Slovenian and international companies moving their leadership positions to countries with more stable, competitive, and growth-oriented tax policies. A decline in investment not only leads to lower tax revenues, but also a lack of opportunities and jobs for highly educated domestic talent, which then seeks opportunities abroad.
A Development Cap for a Development-Oriented Slovenia
For over a decade, the business community and the Finance Committee have called for the introduction of a development cap on pension and health insurance contributions. This is a necessary investment if Slovenia aims to become an attractive destination for investors and talent, providing high-value-added jobs.
Social security contributions (23.1% for employees and 17.1% for employers based on gross salary) are currently paid without a ceiling, despite the fact that payouts for pensions, maternity leave, and unemployment benefits are capped.
We propose a ceiling on contributions, determined by the actual potential to exercise the rights arising from individual social security contributions, or set at 2.5 times the average monthly gross salary.
Notably, several neighboring and comparable countries – Austria, Germany, Serbia, etc. – have already implemented some form of a development cap. For example, in Austria, monthly income exceeding EUR 6,930 (based on 14 payments per year, including holiday and Christmas bonuses) or EUR 8,085 (based on 12 payments per year) is not subject to social security contributions. The contribution ceiling in Austria is thus generally limited to twice the average gross salary.
The introduction of a development cap would create a competitive and development-oriented business environment, as it covers professions that are the driving force behind development and innovation, such as engineers, scientists, and professors.
On January 12, 2026, the Financial Administration of the Republic of Slovenia (FURS) announced that it had collected EUR 26.6 billion in public revenue in 2025, with employees contributing 55% of all public finance revenue through their work.
We propose a review of public revenue sources to lower the tax burden on labor, thereby incentivizing work, which would also result in a reduction in undeclared work. An individual who is unemployed represents a double cost to the state: first, due to the loss of tax revenue, and second, due to the consumption of social transfers. Furthermore, we advocate for reasonable property taxation and consideration of an increase in VAT. By lowering labor taxes, disposable income and consumption would increase, ultimately leading to higher overall tax collection.
Personal Income Tax and the Expansion of Tax Brackets
When reviewing personal income tax, it is crucial to consider not only the tax rates but also the width of the tax brackets – specifically, the income threshold at which a taxpayer moves into a higher bracket. With the average monthly gross salary in Slovenia at EUR 2,591 (SURS: data for November 2025) and an average monthly net payment of EUR 1,638, the 26% tax bracket is already reached. At a gross salary of EUR 3,750 (net EUR 2,287), the 33% bracket applies, with the tax progression continuing up to the 50% bracket. Conversely, the lowest monthly income (up to a net amount of EUR 767.52) is taxed at a 16% rate.
Although the highest personal income tax rate in Slovenia (50%) is aligned with the EU, the significant progression means that the highest rate is calculated at much lower amounts. For example, the 50% tax rate in Slovenia is reached at a net annual tax base higher than EUR 78,016, whereas in Austria it applies to an annual tax base higher than EUR 104,859. We propose an expansion of the tax brackets, meaning a transition to a higher personal income tax bracket at a higher salary level, as is the case in Austria.
Tax Allowances – a Competitive Business Environment
Tax allowances are currently calculated as a reduction of the tax base before the tax is assessed, rather than as a tax credit. This places those with lower incomes in an unequal position, as their allowance may represent only 16% of the total allowance amount.
We propose that allowances (general, personal, and special allowances – such as those for dependent children and other family members, as well as allowances for voluntary supplementary pension insurance) be treated as a tax credit against the tax liability. Furthermore, we propose an increase in the total general allowance and special allowances.
A system should be introduced where one additional salary payment a year, in the amount of the specific employee’s average monthly salary, would be exempt from taxes and contributions. Currently, the Personal Income Tax Act stipulates that performance-based bonuses are tax-exempt up to 100% of the average monthly salary in Slovenia. This regulation should be amended so that:
- The amount of the tax-exempt bonus (which in practice has various names, e.g., bonus, Christmas bonus) is based on the average salary of the specific employee, rather than the average salary in Slovenia;
- The bonus is also exempt from social security contributions;
- The bonus is not tied exclusively to business performance, but rather to any criteria established by the employer for awarding bonuses (e.g., individual performance) and is not strictly bound by a specific internal legal act or collective agreement.
Measures to Increase the Attractiveness of the Slovenian Tax Environment for Investment
We propose maintaining the tax relief for R&D and keeping the investment tax allowance at 40%. Additionally, we advocate for reducing the taxation of dividends, which would positively impact the attractiveness of capital investments. We also support simplifying the procedures for determining the tax residency of natural persons, as faster and more transparent processes would enhance competitiveness and encourage the transfer of the regional functions of foreign companies to Slovenia. Furthermore, we support tax incentives for employee reward schemes, as such compensation motivates employees and reinstates work as a core value. Since innovative companies are the engine of the Slovenian economy, we advocate for incentives that support the growth of innovative and high-growth companies.
The Second Pension Pillar and Capital Market Development
Increasing existing tax allowances for the development of the second pension pillar would enhance the attractiveness of saving, and the volume of savings in the second pillar, which would then be reinvested into the economy and contribute significantly to the development of the capital markets, while also providing savers with a better pension.
The second pension pillar, represented in Slovenia by voluntary supplemental pension insurance, has existed since 2001 and today includes around 60% of all employed individuals. The development of this second pillar is essential for the stability of the pension system. Not only will the second pillar provide higher pensions to individuals during retirement, but it will also increase the volume of savings that are reinvested in the economy and contribute significantly to the development of Slovenia’s capital markets. This increases access to capital for domestic businesses, which will reduce their borrowing costs and boost their competitiveness, which in turn can lead to growth and job creation. It is vital to open a dialogue with all stakeholders about the introduction of mandatory self-enrollment in pension plans for all those employees who are not currently enrolled, as this has been proven to significantly increase participation in pension plans in numerous countries, most recently in the UK, Poland, and Slovakia, where the positive experience could be adapted to the Slovenian context and transferred here.
Furthermore, the current tax relief for pension fund contributions should be modernized by:
- Separating tax relief for collective and individual savings (currently, the employer has priority in claiming the relief);
- Removing the absolute cap on tax relief for VSPI contributions (EUR 3,224 in 2026) and increasing the limit from the current 5.844% to 10% of the employee’s gross salary;
- Fully exempting supplementary pension annuities from personal income tax (currently 50% exempt).
Long-Term Care Should Not Be Just Another Burden Solely Placed on Employers
Under the new Long-Term Care Act, 1% of the gross salary is contributed by the employee and 1% by the employer, while at the same time the individual contributes 1% of their calculated gross pension. We note that, with the introduction of the new contribution, the tax burden on labor in Slovenia is increasing once again, rising disproportionately just above the average salary and ranking among the highest in the EU. Additional tax burdens on labor are therefore unacceptable. Reserves should first be found by streamlining the healthcare and long-term social care system. We should not forget that increased tax burdens on labor are accompanied by growth in the grey economy and a search for ways to bypass the system, whereby the final tax take can even be lower than before the new burdens were introduced.
Digital Payments
The level of the grey economy in Slovenia is relatively high. Cash, the use of which was enshrined in the constitution, is still the prevailing means of payment, while infrastructure for the acceptance of electronic payments remains relatively undeveloped. People should have the opportunity to choose their method of payment, including digital payment, since both local and foreign consumers expect to have a choice of different payment instruments and the option of electronic payment.
The Electronic Payment Instruments Act (ZEPS) represents a significant step in encouraging the digitalization and modernization of payment infrastructure in Slovenia. The obligation to accept at least one electronic means of payment will increase financial transparency and competitiveness, and provide greater choice for consumers and businesses. It is key that the proposed solutions are interoperable, as the important economic sector of tourism requires solutions that accommodate foreign visitors.
It is also vital that Slovenia eliminates additional taxation of financial services, which places domestic providers of payment and financial services in a worse position than foreign providers, and actively encourages the development of open banking and begins preparation for the implementation of the coming digital euro, which over the long term will strengthen the competitiveness and efficiency of the payment system.
Excise Duties
The Finance Committee emphasizes the importance of proportional excise duties that take into account the consequences of any increases, including a decline in sales, business closures, and job losses, which would directly and negatively impact state revenues from contributions, income tax, and other business-related levies. Sudden excise tax hikes often lead to cross-border shopping, the growth of the shadow economy, and the purchase of low-cost products of questionable quality, which does not contribute to improving public health or reducing healthcare costs.
According to estimates by the OECD and the European Commission, the price elasticity of demand for excisable products averages between -0.4 and -0.8. This means that higher excise duties generally lead to a noticeable decline in sales and corporate revenues, particularly in industries with low profit margins. This drop in sales also directly impacts the labor market. Analysis shows that significant excise shocks reduce employment in sectors heavily dependent on domestic consumption, resulting in lower inflows from social security contributions and personal income tax. Consequently, the net fiscal effect of increasing excise duties is often lower than initial budgetary projections, and in some cases, even negative.
Another critical factor is cross-border shopping. When price disparities between countries exceed 10% to 15%, the volume of cross-border consumption increases significantly. Due to its geographical location and open borders, Slovenia is particularly exposed to this phenomenon, which leads to an outflow of consumption to neighboring countries and a reduction of the domestic tax base. At the same time, research highlights the growth of the shadow economy and illicit trade with such disparities, which in certain segments can exceed 10% of the market, further undermining tax collection efficiency.
To ensure stability and predictability in tax policy, we support the introduction of a multi-year excise duty schedule that allows for a gradual increase in excise rates, prevents sudden market shocks, and protects tax revenues in the long run. In light of this, we propose that excise policy should take into account differentiation based on the degree of harm each specific product poses to society.
In the event of exceptional circumstances like a pandemic, we want the state to help companies as quickly and with as little bureaucracy as possible, to continue operating and retain as many jobs as possible, while keeping the solvency needed to emerge from the crisis.
Committee members
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For all questions related to the Committee’s work you can turn to our Committee coordinator Vida Dolenc Pogačnik, our COO and International Cooperation Director.
Vida Dolenc Pogačnik
COO and International Cooperation Director