Slovenia, as an EU member state and participant in the OECD’s Base Erosion and Profit Shifting (BEPS) project, has implemented Country-by-Country Reporting (CbCR) requirements to enhance tax transparency and prevent profit shifting by multinational enterprises (MNEs). These regulations are designed to ensure that MNEs disclose the distribution of income, taxes paid, and certain indicators of economic activity across jurisdictions. This guide aims to provide CFOs and financial executives with a detailed understanding of the CbCR obligations in Slovenia, outlining the criteria for compliance, the filing process, penalties for non-compliance, and key resources to ensure adherence to the regulations.

Applicability of CbCR in Slovenia

Criteria for Reporting:

• Slovenia’s CbCR obligations apply to multinational enterprise (MNE) groups with consolidated annual revenues of at least €750 million in the preceding fiscal year.
• The ultimate parent entity of an MNE group, if it is a tax resident in Slovenia, is responsible for submitting the CbC report.
• If the ultimate parent entity is not a Slovenian resident, a Slovenian constituent entity may be required to file the CbC report if:
  • The parent entity’s country of residence does not require CbCR,
  • There is no information exchange agreement in place between Slovenia and the parent entity’s country, or
  • There is a systemic failure to exchange CbC reports in the parent entity’s jurisdiction.

Relevant Legislation:

• CbCR in Slovenia is governed by the Corporate Income Tax Act and aligns with the European Union’s Directive 2016/881 on mandatory exchange of information, which reflects the OECD’s BEPS Action 13 framework.

Reporting Requirements

Information to be Reported:

• The CbC report must include the following information for each tax jurisdiction in which the MNE group operates:
  • Total revenue (distinguishing between related-party and unrelated-party revenue)
  • Profit or loss before income tax
  • Income tax paid and accrued
  • Stated capital and accumulated earnings
  • Number of employees
  • Tangible assets, excluding cash or cash equivalents
• The report must also list all constituent entities of the MNE group and provide details of their tax residency and principal business activities.

Form and Submission:

• The CbC report must be filed electronically using the OECD XML schema format, which standardises the data for international exchanges.
• The submission is made to Slovenia’s Financial Administration (Finančna uprava Republike Slovenije – FURS), the competent tax authority in Slovenia.
  • For more information on the electronic submission process, visit the FURS website.

Filing Deadlines

• The CbC report must be submitted within 12 months following the end of the MNE group’s fiscal year. For instance, for a fiscal year ending on 31 December 2023, the CbC report must be filed by 31 December 2024.
• Slovenian constituent entities of an MNE group must also notify FURS about the identity of the reporting entity (whether it is the ultimate parent or a surrogate entity) by the last day of the fiscal year.

Penalties for Non-Compliance

Penalties:

• Slovenia enforces penalties for non-compliance with CbCR obligations, which include:
  • Fines for failure to file the CbC report or delays in filing, with penalties ranging from €10,000 to €30,000 for legal entities.
  • Penalties for inaccurate or incomplete data within the report, which may attract additional fines.
  • Failure to submit the necessary notifications on time or providing incorrect information can lead to further fines.

Defences:

• MNEs may invoke a reasonable cause defence if they can demonstrate valid reasons for non-compliance, such as unexpected technical issues or administrative errors. However, it is strongly recommended to ensure compliance to avoid the risk of penalties.

Confidentiality and Use of Information

Data Protection:

• The CbC reports submitted to FURS are treated with strict confidentiality and are used primarily for tax risk assessments, including evaluating transfer pricing risks and identifying potential BEPS activities.
• Slovenia is a signatory to the Multilateral Competent Authority Agreement (MCAA), which facilitates the automatic exchange of CbC reports between tax authorities globally. Data exchange is carried out in compliance with the OECD’s confidentiality and data protection standards.