All the major forms of FP of workers being used in other countries can also be implemented in Slovenia under the current laws. None of the FP schemes are supported by the tax system; in fact, the opposite can be said to hold true. One of the basic FP schemes– profit sharing – is even more heavily taxed than the payment of bonuses based on performance.

Bonuses based on company performance are a form of employee participation in the profits of the company and can be given according to the decision of each company. The remuneration is possible either in cash, shares, share of the company, or any other form. Payment is usually immediate, but it can also be deferred. This kind of employee income is taxed just like salaries, meaning that it is burdened with income tax, social security contributions and payroll tax. The funds needed to cover these bonuses are fiscally treated as expenditures from the point of corporate profit tax. This kind of income is also described in the general collective agreement applicable to all employees in Slovenia. Such FP scheme is widely used.

Sharing the company’s profit from the balance sheet is possible in accordance with the valid legislation, provided that a company specifies in its articles of association or in its undertaking contract that profit from the balance sheet can be used for employee profit-sharing. The general meeting has to adopt the appropriate decision on profit sharing before payments can be made. Such employee income is treated as employment income and is burdened with income tax payments and social security contributions, but it is not burdened with the payroll tax. As this is the payment of company’s profit from the balance sheet, such income is not fiscally treated as expenditure from the point of corporate profit tax, and therefore represents an even bigger burden for the companies than the bonuses for employees based on performance. This FP scheme can also be paid off in money, shares or any other form, and the payment can either be made immediately or after a holding period.

Buying company’s shares with or without a discount is possible. If a company offers its employees to purchase shares under market conditions, then such FP scheme has no fiscal consequences. On the other hand, if a company allows the purchase of shares of the company at a discount, then the difference between the market and the purchase prices at the time of the purchase is treated as an employee bonus based on employment relationship and is appropriately taxed. The taxing does not depend on whether the purchaser of the shares subsequently creates a profit or a loss. If such shares are sold, the possible profit is treated as the difference between the market and the purchase prices, and is taxed accordingly. Free shares are also possible. The market value of the shares on the day they were received free of charge is treated either as income from employment, and is therefore taxed, or as a salary or even an employment bonus, depending on the manner in which the payment is made.

Free stock options or stock options to buy are possible. Based on the current legislation, the moment of taxation occurs when the stock options are implemented. The basis of taxation is the difference between the market and purchase prices at the time the stock options are implemented. The difference is taxed as income from employment. The possible profit created due to the difference between the purchase and selling prices is taxed according to the tax on capital gains.