| Incentives and Taxation Systems |
Two types of instruments to support the development of small and medium-sized enterprises are available in Slovenia: interventions directly managed by the Ministry of Economy and tax incentives provided for by the Law on company taxation.
With reference to the ministerial programme for the promotion of entrepreneurship and competition – for the 2002/2006 period – activities have been grouped into three actions:
1. Knowledge for development:
- transfer of knowledge from research and training institutions to economy,
- promotion of cooperation in the research and development fields,
- environment and innovation.
2. Improvement of enterprise competitiveness:
- incentives for entrepreneurial investments in technological development and innovation,
- support to enterprise internationalisation,
- support to the development of strategies for increasing productivity,
- networking and cluster development.
3. Promotion of entrepreneurship:
- promotion of entrepreneurship and development of supporting environment,
- promotion of creation and development of small and medium-sized enterprises and promotion of investments,
- promotion of tourism development.
The amount allocated for single actions is set annually. Besides these measures, the European Structural Funds must be considered. In fact, for the whole 2004-2006 planning period, the Slovenian territory has been classified as Objective 1 territory. Resources have been allocated to the following measures/activities according to priority 1 of the “Promotion of entrepreneurial sector and competitiveness” Single Planning Document:
- Measure 1.1: Promotion of innovation development
- Measure 1.2: Promotion of tourist sites development
- Measure 1.3: Development of an entrepreneurship support system
- Measure 1.4: Commercial and public infrastructures.
As regards infrastructures for innovation development (incubators, technological parks) and similar investments, the contribution is granted for 40% of the investment cost.
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It is a method to dramatically reduce the costs of advisory expenses born by small and medium-sized enterprises. Managed by JAPTI national agency (Public agency for entrepreneurship and foreign investments), in cooperation with local centres of small and medium-sized enterprises promotion, the system enables companies to obtain a non-refundable contribution amounting to 50% of advisory costs born for the preparation of business plans, investment plans, administration, etc. In the case of companies started up by unemployed subjects, the contribution can even cover 100% of costs born.
Among tax incentives, besides the general exemptions for investments in machinery and equipment (company cars and office furniture are not included in the exemption calculation) and in intangible assets, exemptions are provided for investments in plants, machinery and equipment aimed at research and development (including financial leasing). Further exemption for these investments is granted by means of a reduction in the tax base by 10% of the investments value.
New enterprises settled in technological parks or incubators
The Ministry of Economy, on the basis of annual announcements, provides incentives to enterprises established in enterprise incubators or technological parks for the first four years of activity with reference to the following items:
- costs for renting spaces to be used for research and development;
- costs of personnel employed in new (research and development) projects;
- costs of external advisory services for new research and development projects.
New enterprises
Capital grants and interest contributions for new entrepreneurs and enterprises in the start-up phase are available, again on the basis of annual announcements of the Ministry or Public Fund for Entrepreneurs (Slovenski podjetniski sklad).
Companies hiring apprentices, people without work experience or registered at the job centre in the previous year, are entitled to benefit from a tax exemption (tax-base reduction) of 30% of the employees’ gross salary for the first 12 months after recruitment. In order to take advantage of the facilitation, companies must grant the worker an open-ended contract or a temporary contract of at least two years.
In the case of recruitment of employees with university-level educational qualification in scientific fields, the exemption provided for is doubled (and reaches 60% of the employees’ gross salary). Larger exemptions are envisaged also in the case of disabled workers recruitment.
