|Abstract:||The simplified legal regulation of income from self-employment, when a natural person who engages in an activity may determine the tax base on the grounds of actual income and flat rate expenses, has until 31 December 2012 been known to too little taxable persons, due to which this regulation was not used as it could have been. The legislation was quite unkind, since it was only enabled to those whose income was under €42,000 and who did not employ any workers. An impediment were also flat rate expenses amounting only to 25% of the generated income (except in three cases to 70%). The income of taxable persons was considered according to the principle of realisation paid. An impediment was also a complex prepayment calculation procedure which was related to the fact, who did the taxable person receive payment from. The information from the returns and settlements of the withholding tax were then also transferred to the annual assessment of personal income tax.
After 1 January 2013 must the taxable persons for the previous tax year submit the tax return of the personal income tax for income from self-employment and may be considered according flat rate expenses amounting to 70% (after 1 January 2015 even 80 %) of the income. Their income is considered according to the principle of realisation charged. Since the income from self-employment is no longer included in the annual assessment of personal income this resulted in greater flexibility in choices of taxable persons regarding the method of determination of tax base and the possibility of annual change by designation in the tax return. As at 1 January 2013, the limit was raised to €50,000 income yearly. In addition, the administrative procedures were simplified, and the recognition of this regulation between taxable persons has in 2013 increased to 14.35%, and in 2014 to 19.07%. Given the above that from 1 January 2013 onwards, 79% of taxable persons could decide for this regime, is the percentage of those who actually decided for this regime still quite low. But when as at 1 January 2015 (in addition to the basic limit of €50,000), the limit was raised to €100,000 under precisely specified conditions, 27.02% of taxable persons chose flat rate taxation in 2015, and 31.62% after the first quarter in 2016, but still less than expected. Should the tax liability be analysed in relation to income as arising from the information from tax returns of personal income tax prepayments and personal income tax for income from self-employment for 2015, the picture of low percentage of flat rate taxpayers becomes clearer. The effective taxation of flat rate taxpayers is since 1 January 2015 onwards at 4,00% in terms of income generated, which should be favourable. If, however you take a closer look at the taxation of those who determine the tax base by considering actual expenses, the percentage of the average effective taxation with the personal income tax prepayment for 2015 amounts to only 1.00 % compared to their income. Given the fact that the majority of those natural persons who perform the activity live from this income such determination is in fact alarming. Therefore it is necessary to strengthen the supervision of the tax authority on both methods of determining the tax base. However, this shall not be possible without further employment at the Financial Administration of the Republic of Slovenia. Insufficient staffing in control and inspection cannot exercise such supervision as it would be currently necessary for over 98,317 activities of natural persons (information of 31 March 2016).|