Date: December 8, 2006
1. Insurance Contracts
Insurance contracts are defined in the Insurance Act - official consolidated text 2 (Official Journal of the RS, no. 109/06) and they include concluding and execution of contracts about property and life insurance or reinsurance, with the exception of obligatory social insurance. The law classifies insurance in relation to main hazards, covered by insurance, into insurance types and defines who and under which conditions may conclude insurance contracts in the territory of the Republic of Slovenia. In accordance with the law insurance companies of EU Member States may establish a branch office in the territory of the Republic of Slovenia or they may be authorised in accordance with the law to directly conclude insurance contracts in the territory of the Republic of Slovenia.
2. Execution of Insurance Contracts
Insurance contracts may be executed by:
an insurance company with the seat in the Republic of Slovenia, which has acquired a permit for execution of these contracts from the Agency for Insurance Supervision; a branch of a foreign insurance company, which has acquired a permit for execution of these contracts from the Agency for Insurance Supervision; an insurance company of a Member State of European Communities, which operate within the EU, which in accordance with the ZZavar-UPB2 (the Insurance Act - official consolidated text 2) establishes a branch in the territory of the Republic of Slovenia or is in accordance with provisions from the ZZavar-UPB2 authorised to directly execute insurance contracts in the territory of the Republic of Slovenia.
The Agency for Insurance Supervision issues a permit for execution of insurance contracts according to individual insurance types.
The Tax Administration is in accordance with the act, which arranges the tax service, also competent for management and maintenance of the tax register and tax records. A foreign individual or legal entity with no seat or any other registered form in the Republic of Slovenia is also entered into the tax register if this person performs business activities in the territory of the Republic of Slovenia. A foreign person with no seat or other registration form in the Republic of Slovenia submits an application for the entry into the tax register before the beginning of performing business activities in the territory of the Republic of Slovenia at the tax office, on the territory of which this person will perform services.
3. Insurance Contracts Tax
The Insurance Contracts Tax Act – official consolidated text 1 (Official Journal of the RS, no. 96/05), hereinafter ZDPZP–UPB1, introduces an obligation of charging and paying the insurance contracts tax in the territory of the Republic of Slovenia. The insurance contracts tax is paid from concluded insurance contracts. The entity liable for this tax is an insurance company or other legal entity, which concludes insurance contracts in the territory of the Republic of Slovenia.
The obligation for charging of the tax begins when the person liable for the tax concludes an insurance contract, which is concluded when an invoice is issued for the payment of an insurance premium. The insurance contract at personal insurance is concluded when the insurance premium is paid. The base for the charging of the tax is a premium or contribution, which is paid on the basis of a concluded insurance contract. The tax is paid at the rate of 6.5 percent from the tax base.
The insurance contracts tax is not paid from:
- obligatory pension and disability insurance and obligatory health insurance,
- property (accident and health) and life insurance, where the insurance relation is not shorter than 10 years,
- insurance, which covers hazards outside the territory of the Republic of Slovenia,
- reinsurance.
Life insurance includes all types of life insurance irrespective of the fact whether the insurance amount is paid in one amount or in the form of annuity.
The person liable for the insurance contracts tax pays it on concluded insurance contracts in a calendar month. The person shall provide in his/her records the data on tax bases, on the basis of which the insurance contracts tax is charged and paid. On the basis of data from the records the person liable for the tax prepares a monthly settlement of the tax and submits it to tax authorities in 15 days after the end of the month, for which the settlement has been prepared. The following data shall be evident from the settlement: the period, for which the tax is paid, tax base, tax rate and amount of tax charged. The form for the settlement is not prescribed, but the proposed form is available on the web side of the Tax Administration of the Republic of Slovenia. The person liable for the tax shall submit the tax settlement to tax authorities irrespective of the fact whether he/she is obliged to pay the tax for the period, for which he/she has submitted the settlement. The charged tax shall be paid in 15 days after the end of the month, for which the settlement has been prepared.
In cases when the insurance contract for insurance from Item 2 Article 8 of the ZDPZP- UPB1 expires before the end of a ten-year period (except in cases of extraordinary expiry of the insurance contract due to the death of the insured), the person liable for the tax shall charge and pay the insurance contracts tax. The tax is assessed from the amount, which is paid to the insured in 15 days after the end of the month, in which the insurance has been cancelled.
4. Payments of the Tax according to the Insurance Contracts Tax Act from abroad to Slovenia
The taxpayer can make the payment also via his/her bank as an international bank payment:
BANKA SLOVENIJE
SWIFT: BSLJSI2X
IBAN: SI56 (the number of payment subaccount)
SI stands for the Republic of Slovenia and 56 stands for the control number for the Republic of Slovenia. They are followed by the entry of payment subaccount, to which the payment shall be made, without spaces or separation marks.
The number of payment subaccount is prescribed by the Rules on subaccounts and method of payment of compulsory levies and other public revenues (Official Journal of the RS, no. 141/04, 106/05, 120/05 and 72/06). The number for insurance contracts tax is: 01100-1008317264. At payment the person liable for the tax shall put down the model into the reference number: 19 and then his/her Slovene tax number and the code of the compulsory duty, which is for this tax: 07064.
The acquisition of the Slovene tax number and entry into the Tax register of the Republic of Slovenia is the condition for taxpayers, so that they can start paying the settled tax on insurance contracts. Submission of the application for entry into the Tax register of the Republic of Slovenia is defined with the provision from Article 45 (entry of legal entities, associations of persons according to the foreign law, which are without legal personality, and other persons into the tax register) of the Tax Administration Act - ZDS-1 (Official Journal of the RS, no. 17/05 - Official consolidated text 1 and 114/06). The Rules on Management and Maintenance of the Tax Register (Official Journal of the RS, no. 31/05), hereinafter the rules, define in Article 11 that the taxpayer from Article 45 of the ZDS-1 completes DR-04 form and submits the following documents to the tax body for checking or encloses:
order about the entry into the register of companies or document about the entry into other register or records, identity card or passport or any other document, with which the person can prove its identity as a legal representative, who files the application, notice about identification and classification of units of the business register according to business activities, when the person shall in accordance with the law, which arranges the business register, be entered into the business register, documents, on which other data are based, which are entered into the tax register.
The tax body performs the entry into the tax register and assigns the tax number to the person liable for the tax if the application for entry is submitted with the prescribed contents with prescribed documents enclosed. The tax body issues in eight days a confirmation about the entry, on which the tax number is stated, as it is defined by Article 12 of the Rules.
DR-04 form should be sent to the Special Tax Office - Large Business Office (Their address is Posebni davčni urad, Gospodinjska 8, 1001 Ljubljana, e-mail address: gp.durs-pdu(at)gov.si) for the acquisition of the tax number and entry into the tax register. You can send all settlements for the Insurance Contracts Tax to the same address.
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