Decree on temporary measures in administrative matters to prevent the consequences of floods and tax measures

Connected with the recent flooding, the Government of the Republic of Slovenia issued a Decree on temporary measures in administrative matters to prevent the consequences of floods that affected the Republic of Slovenia in August 2023 (Official Gazette of the Republic of Slovenia, no. 87/23 and 89/23; hereinafter: “Decree“), which entered into force on August 6, 2023 and is valid for 1 month (up to and including September 6, 2023).

The Decree applies to administrative procedures before administrative and other state authorities, authorities of self-governing local communities and holders of public authorisations (hereinafter: “Authorities”) and, during its validity, stipulates the following temporary measures:

  • local jurisdiction for accepting applications is abolished (applications accepted and processed by the competent Authorities can be submitted with any other Authority of the same type);
  • it is possible to submit applications electronically without a secure electronic signature and a qualified certificate (identification is possible with other data determined by the Authorities for business purposes, e.g. an officially assigned identification number);
  • the inspection of documents is not carried out on the premises of the Authorities if a copy of the documents can be sent to the person who demonstrates legal interest;
  • procedural deadlines for fulfilling rights or obligations (e.g. for filing an applications, appeals, etc…) are interrupted for 14 days since the effectiveness of the Decree. This means that from August 6 to inclusive August 19, 2023 procedural deadlines are interrupted. The deadlines resume on August 20, 2023 and the parties remain with as much time to fulfil the obligation as they would otherwise have had before the interruption;
  • at the request of the parties and on the basis of justified reasons related to floods the Authorities may extend the deadlines for the fulfilment of material obligations and for the issuance of decisions. This extension lasts for a maximum of two months.

As regards measures in the tax field the above especially means that taxpayers who, for reasons related to the floods, will not be able to pay their tax obligations (taxes, contributions, fines, etc…) in due time can request a deferral of payment with the Financial Administration of the Republic of Slovenia (hereinafter: “FURS“). A deferral can be requested for a maximum of 24 months. In case of an approved deferral no interest will be charged. FURS has already prepared an application form on its website which taxpayers can submit up to and including September 6, 2023.

Additionally, FURS adapted its workflow in such a way that they carry out all procedures that benefit taxpayers or are carried out on their initiative, while:

  • reminders and decisions in enforcement procedures are delayed;
  • the deadlines for issuing of income tax decisions (decisions based on considered objections), decisions regarding NUZS (compensation for the use of building land) and property tax have been delayed;
  • tax audit procedures are temporarily not carried out in affected areas and against taxpayers who state reasons related to floods.

Moreover, it is also worth mentioning the tax institutes which are already contained in the current Tax Procedure Act (Official Gazette of the RS, No. 13/11 et seq.; hereinafter: “TPA“) and which can be used by taxpayers to facilitate tax compliance in the current situation:

  • Submission of tax calculations an tax returns after the expiry of the prescribed period (Article 52 and 62, TPA). For justifiable reasons, taxpayers may submit tax calculations and tax returns after the statutory deadline has expired. They must be submitted within eight days from the day when the reason for delay ceases, but no later than within three months from the day when the deadline for submission of the return expired. With regard to other missed actions (procedural deadlines) taxpayers can also benefit from the institute of “return to the previous state”, regulated in the Act on General Administrative Procedure (Official Gazette of the Republic of Slovenia, No. 24/06 et seq.; hereinafter “ZUP“).
  • In addition to the above-mentioned possibility of applying for a deferral of the payment of tax obligations in connection with the floods which will be possible until the beginning of September 2023, the law foresees other possibilities for more favourable payment of taxes (Articles 101, 102 and 103 ZDavP-2). Natural persons can apply for write-off, partial write-off, deferral of tax payment for a period of up to two years, or payment of tax in a maximum of 24 monthly instalments over a period of 24 months in exceptional cases, for payment of tax in a maximum of 3 monthly instalments without checking of conditions, and for payment of tax in a maximum of 24 monthly instalments or deferral of payment for a period of 24 months upon submission of appropriate insurance. However, legal entities can apply for tax payment in a maximum of 24 monthly instalments or deferral of payment for a period of 24 months due to the threat of serious economic damage or for tax payment in a maximum of 24 monthly instalments or deferral of payment for a period of 24 months upon submission of appropriate insurance.
  • If it becomes evident that their tax base for the current year will differ from the tax base of the previous tax year, self-employed persons and legal entities may also submit an application for a mid-yearly change (reduction) in the amount of advance payments in Personal Income Tax from independent activities or Corporate Income Tax.
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