Position of the STF on the proposed amendments to the Income Tax Act — tax treatment of the system of standardised expenditure

September 3, 2025
STF's views on the announced changes to the Income Tax Act

At the Slovenian Technology Forum (STF), we have closely followed the re-legislative proposal, which aims to restore the system of standardised expenditure to the state before December 2024. We oppose such a proposal because we believe it represents a step backwards and increases uncertainty for both companies and individuals.

Our key points of view:

• A fairer treatment of all forms of work — burdens from employment must be balanced with other forms (e.g., copyright contracts, student work). The current disparities are too great and encourage abuses or lead to covert employment.

• Higher social contributions for “socially secure” persons who draw financial security from capital gains but are formally insured as unemployed and pay minimum contributions.

• Greater transparency — individual entrepreneurs in the standardised expenditure system should also be obliged to publish annual reports with AJPES, as is the case for legal entities.

Why are we opposed to going back to the old system?

• The Normyrans system generates unfair competition and encourages disguised labor relations.

• Contributes to a low-tax culture and distorts the labor market and social transfers.

• Most regulated s.p.s pay minimum social contributions, which means too low amounts paid to the pension and health insurance fund.

• Such a system inhibits wage growth, investment in knowledge and development and reduces Slovenia's competitiveness.

Instead of returning to an ineffective system, we call for comprehensive tax reform that is fairer, more transparent and more competitive. Slovenia is already lagging behind in tax competitiveness — mainly due to excessive wage burdens and an increased corporate tax rate.

At STF, we remain committed to constructive dialogue and seek solutions that will benefit employees, companies and the country as a whole in the long term. It's time to move from words to actions.

The document with views and proposals, which we forwarded to the proponents of the aforementioned legal amendments at the end of August, is available here:

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