The corporate income tax rate dropped from 25% to 20% between 2006 and 2010. Amendments adopted last year brought it down to 17% in 2013, in an attempt by the previous centre-right government to make Slovenia a more attractive destination for foreign investors.

The current government decided to stop the subsequent cuts in order to prevent tax receipts from declining further as it tries to balance public finances. "This is not a tax increase," Finance Ministry state secretary Mateja Vraničar told MPs.

The government also closed a loophole in a system that allows shareholders to claim tax deductions on interest on loans that they extend to companies in place of a full-fledged recapitalisation.

Existing limits on what is called "thin capitalisation" will be extended to associated companies, which have so far been exempted.

The system of tax credits remains the same, with companies eligible for 100% deductions for investments in research and development, and 40% deductions for investments in fixed assets.