The Slovenia Times

Changes are Just Cosmetic



We Are Well Informed The tax reforms represent a positive change and introduce - especially from a business point of view - a simplification of some procedures which have been a great burden in the past. I was expecting a bit bolder changes in some areas, because the starting proposals were more promising than the end result. We are well-informed about the reforms, but we expect some additional regulations, which we hope will not be an unpleasant surprise. A Burden in Time and Expense Tax reform is positive for individuals, not for companies. Lower tax is not a compensation for lower or annulled tax relief for investments. "Development tax relief" is complicated and tax authorities can easily refuse it. Companies will not have fewer costs because of the changes in personal tax law, and the idea of a lower amount for social security was rejected. Constant changes, corrections, cancellations and additions to the articles of law do not simplify anything, on the contrary - they represent a burden in time and expense. One even starts to think it would be better to have an inferior law, than to change it all the time. The law on VAT is incomplete, but there have been some positive changes in the tax procedure. We will only feel the real effects of the changes after some time when all the new regulations have come into force. Slight Corrections I would not describe this as a reform. It is more like slight corrections of the tax legislation; and companies will hardly notice the changes. This will not help Slovenia to become more competitive in the world. And this is the main issue - how can all Slovenians become more competitive and ensure their future success. If the country is competitive, it will get a lot of business and be more prosperous. We are backsliding regarding competitiveness, and the desire to increase competitiveness was the main impulse for change in the first place. These changes are not what Slovenia needs. Other European countries have been much more radical, because they are aware that Europe is becoming less competitive in the global marketplace.


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