A country's tax policy is of great importance for the economy and for the very functioning of businesses. Globalization, the shortening of supply chains and the online presence of business must be matched by legislation at national, European Union and OECD level. The material and procedural elements are directly intertwined in deciding whether companies remain tax resident in a particular country.
The core of the master’s thesis deals with the question of the appropriateness of the criteria for a company to be considered tax resident and the conditions that must be met for this to be the case. The current legislation can be divided into three levels: national, European and supranational (OECD). In this thesis I address the problems and challenges that arise at each level. I also explain how the place of effective management criterion has evolved, based on the case law of the CJEU, and analyze concrete examples that have arisen in the practice of interpreting the OECD Model Convention. I discuss the proposal for an amendment to ZDDPO-2, which transposes European directives into the Slovenian legal order, and the proposal for a Directive on faster and more secure relief from excess withholding tax, which introduces a common digital certificate of tax residency.
For companies, the decision whether to become resident in Slovenia is also heavily influenced by the fast and at least partially de-bureaucratised arrangements for obtaining tax resident status and paying tax. In this second part, I will touch upon the procedures required to obtain a tax residency certificate, the procedure for obtaining a tax number and the tax advance. An overview is given of the differences between the procedures to be followed by tax residents who are taxed on the worldwide income principle and those for non-tax residents who are taxed on the source of income principle.
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