In this edition of EY Tax News, we inform you about the implementation of CbCR,

amendments to the taxation of travel expenses for assigned workers and requests for

a tax opinion in cross-border transactions. Further we inform you about expected

changes in the legislation, additional guidance on R&D relief and signed Multilateral

Convention. In addition, we indicate important dates in July 2017.

Implementation of Country-by-Country-Reporting

On 16 June 2017 the Rules for amendments to the Rules for implementation of the

Tax Procedure Act were published in the Official Gazette of Republic of Slovenia

(Off.G. No. 30/2017; the Rules). Based on the Rules some amendments are

implemented with respect to Appendix 20 that relates to reporting about financial

accounts, while new Appendix 18 that related to FATCA reporting is a part of the

Rules and replaces the previous version.

The Rules are valid from 1 July 2017.

In terms of the content, the most important part of the Rules relates to

implementation of guidance for Country-by-Country-Reporting (CbCR). The Rules

mainly follow the Proposal of the Rules which was published by the Slovenian Ministry

of Finance on 19 April 2017.

To emphasize the most important provisions, in the Rules the following CbCR

requirements are defined:

► sources of data that may be used for preparing a CbCR;

► principle of consistency for using the same sources of data over the years

otherwise any change must be disclosed;

30 June 2017

Tax News - June

EY SloveniaTax News

Tax News June 20172

► data on branches (permanent establishments) should be

included under tax jurisdiction where the branch is located

and not under tax jurisdiction where the head office legal

entity is resident;

► an Annex 21 that is a part of the Rules provides an overview

of all items that are included in CbCR, which should be

submitted by a reporting entity in an electronic form;

► CbCR notification should be submitted alongside the CIT

return for the relevant fiscal year through online eTax

system.

The CbCR notification requirement was expanded comparing to the

proposal published in April and should besides definition of a taxpayer

and a reporting entity include also information about their roles within

a multinational group and a definition of a parent company and a group

of companies. The notification form itself is not published yet; however

it is expected that it will be published on the Tax Authorities’ webpage,

presumably in July 2017.

EY Slovenia can help members of multinational group of entities with

clarifying their CbCR obligations and with properly addressing any

compliance requirements.

Taxation of travel expenses for assigned workers

On 17 February 2017 Slovenian Parliament accepted a Transnational Provision of Services Act which entered into

force in March 2017 and will be in use from 1 January 2018. As the Act is limiting business trips and instead

predicting assignments, the Act received many critics. Based on the current legislation in use, reimbursement of travel

expenses incurred while on business trip, such as meal, transportation and lodging are exempt from taxation. While as

such reimbursements are considered as taxable income if on assignment. This means that as of 1 January 2018

employees who will qualify for assignment instead of business trip will be put in a worse position than prior to this date.

Ministry of labour, family, social affairs and equal opportunities unofficially informed us that they have agreed to

amend Article 130 of Employment Relationship Act in a way that will equal the treatment of reimbursement of travel

expenses while on short term assignment with business trips. Presumably the amendment will be adopted in autumn

2017.

Requests for tax opinions on VAT in cross-border transactions

In June 2017 the Financial Authority of Slovenia published the article regarding the test relating to private requests

for a tax opinion in cross-border transactions, to remind the taxpayers on their possibility to file a request relating the

VAT treatment of its cross-border transactions in relevant countries.

As of 1 June 2013 several EU Member States have decided to participate in a test relating to private requests for a tax

opinion regarding the VAT treatment of cross-border transactions. The following countries have agreed to participate

in the project: Belgium, Denmark, Ireland, Estonia, Spain, France, Italy, Cyprus, Latvia, Lithuania, Malta, Hungary,

Portuguese, Finland, Sweden, United Kingdom and Slovenia.

The test is expected to last until 30 September 2018 and European Commission is regularly issuing VAT Cross Border

Rulings which shall help the taxpayers in predicting the tax treatment of its cross-border transactions in different

Member States.

EY Slovenia may help the taxpayers with filing the request for a tax opinion in cross-border transactions to the

Slovenian Tax Authorities or obtain the published opinions which correspond to their transactions.

Tax trends

Ministry of Finance started with the preparation of changes in the tax area. It is planned that the following changes will

be introduced in the future:

► restructuring of tax burdens with amending the ZDoh-2, ZDDPO-2 and extension of the scheme which is

regulating the tonnage tax;

► improving the efficiency of collecting taxes and reducing administrative burdens

► the amendment of ZDavPR and use of pre-numbered receipt book also after the transitional period is over;

► reduction of costs associated with paying taxes in order to improve the business environment (e.g. the use of

online payments or the UJP e-payments for taxpayers who are included in the eTax system).

R&D guidance planned

In addition to already published four tax opinions relating to the research and development (“R&D”) relief the

Slovenian Financial Administration is planning to prepare the guidance on the application of the R&D relief towards

easier applicability of this relief.

OECD Convention signed

On 7 June 2017 the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (the MLI) was

sign by over 70 Ministers and other high-level representatives. The new convention has been developed under Action

15 of the BEPS project which analysed the possibility of developing a multilateral instrument in order to allow

countries to swiftly amend their tax treaties to implement the tax treaty-related BEPS recommendations and avoid

changes having to be implemented on a treaty-by-treaty basis. It is expected that 1,100 tax treaties will be modified as

a result of signing the MLI. With respect to a specific bilateral tax treaty, the measures will only enter into effect after

both parties to the treaty have deposited its instrument of ratification, acceptance or approval of the MLI and a

specified time has passed.

Tax News June 20173

Important dates in July 2017

Tax News June 20174

Date Reporting/Payment

10 July 2017 Payment of CIT advance payment for June 2017

14 July 2017 Intrastat report

20 July 2017 EC Sales List and VAT return (only in case of IC supplies)

20 July 2017BST - Report on trade in services and part of goods, and the current/capital transfers to non-

residents for June 2017

20 July 2017 KRD - Report about received and granted loans and deposits by non-residents for June 2017

31 July 2017 VAT Return

31 July 2017SKV - Report on short-term receivables and liabilities for transaction with non-residents for June

2017

31 July 2017 PD form – Report on supplies (Article 76.a VATA-1) for June 2017

31 July 2017 1-ZAP/M Form – Monthly Report on Earnings for June 2017

31 July 2017 POSL-P/ČL – Quarterly reporting – 2nd quarter of 2017

EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young Svetovanje d.o.o.Dunajska cesta 1111000 LjubljanaTel: +386 1 583 17 24E-mail: info@si.ey.com

© 2017 Ernst & Young Svetovanje, d.o.o.All Rights Reserved.

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

ey.com/si

Tax News June 20175

EY Slovenia – Tax Services Leaders

Dénes Szabó, Partner, Head of TaxT: +386 1 583 17 72E: denes.szabo@si.ey.com

► Dénes advises local and multinational companies on tax efficient international restructuring and mergers & acquisitions.

► He leads teams to solve local and international tax controversy issues and manages APA and tax ruling negotiations.

Iris Bajec, Senior ManagerT: +386 1 583 17 12E: iris.bajec@si.ey.com

► Iris specializes in accounting, compliance and reporting.► She has extensive experience in transaction tax and in

preparation and review of CIT returns and financial statements.

Anka Pogačnik, ManagerT: +386 1 583 17 54E: anka.pogacnik@si.ey.com

► Anka advises clients mainly on VAT and other indirect taxes.

► She has experience in advising clients on complex tax issues, due diligences and VAT optimisation projects.

Mojca Lukač, Senior ManagerT: +386 1 583 17 31E: mojca.lukac@si.ey.com

► Mojca advises clients on personal income tax, social security, payroll and immigration.

► She has experience in HR advisory and labor law.

Matej Kovačič, Senior ManagerT: +386 1 583 17 62E: matej.kovacic@si.ey.com

► Matej advises clients on corporate tax, international tax and transfer pricing.

► He has extensive experience in advising domestic and international clients on tax aspects of business restructurings, e.g. acquisitions, disposals, spin-offs, liquidations and mergers.

Lucijan Klemenčič, Senior ManagerT: +386 1 583 17 21E: lucijan.klemencic@si.ey.com

► Lucijan assists clients in transfer pricing documentation and taxation of permanent establishments.

► He has experience advising domestic and foreign clients on tax aspects of corporate restructuring and tax auditprocedures.

EY Salary Calculator

Calculate your net salary, gross salary and employer cost in BiH, Croatia, Slovenia and Serbia on your mobile device.