Companies to pay 0.8% of profits, people 0.3% of income tax to flood fund

Ljubljana, 25 August - After the government adopted an emergency flood relief bill on Thursday, Finance Minister Klemen Boštjančič explained on the late-night current affairs show Odmevi that contributions to a special reconstruction fund would amount to 0.8% of pre-tax profit for companies and to 0.3% of income tax for individuals.

Bridge over the Mislinja River destroyed by floods.
Photo: Vesna Pušnik Brezovnik/STA
File photo

Individuals whose base for the solidarity contribution does not exceed 35% of the average pay in the country in 2023 and 2024 will not have to pay the contribution to the Slovenian Reconstruction Fund.

Boštjančič, noting damage from the floods was estimated at over EUR 5 billion, said that these contributions are to net EUR 100 to 150 million a year for the fund.

Instead of paying the mandatory contribution, people will also be able to work it off - by working one Saturday this year and another in 2024.

However, the solidarity contribution will be reduced by the contribution the worker or the employer will pay to the fund from the money made on the solidarity Saturday.

Depending on how work process is organised at individual companies, any other work day could serve as a solidarity day.

Employers will have to notify the Financial Administration about it in advance, while a written consent by workers will be needed before the employer sends their one-day pay to the solidarity fund.

The employers will calculate the contribution of workers and of the employer on their own in line with the legislation.

The employer's contribution will not count as a deduction for donations or an expense under corporate income tax and personal income tax laws.

Boštjančič told TV Slovenija last evening that the financial effects of the emergency legislation adopted yesterday were assessed at between EUR 150 and 170 million.

Details about the fund, whose acronym is SOS, are not yet entirely clear, but unofficial information by several media indicates that it would manage around EUR 3 billion.

The 180-page emergency bill has already been sent to parliament to be fast-tracked.

© STA, 2023