Croatian legislative authorities put a comprehensive package together to change the tax legislation as of January 1, 2015!
Croatian law makers attempt to boost consumer’s buying power and at the same time improve the conditions for entrepreneurs through several tax law changes.
Changes were made, amongst others, in income tax law, value-added tax law and profit tax law (= corporation tax law). In income tax law, for example, changes were made to the brackets of the individual tax tariffs. In the first bracket, income tax payers are taxed with 12% from 2,600.00 Kuna instead of from 2,200.00 Kuna, income from 2,600.00 Kuna up to 13,200.00 Kuna with 25% and above 13,200.00 Kuna (to date 8,800.00 Kuna) with 40%.
Self-employed are now subject to profit tax from 3 Million Kuna on, the prior limit was 2 Million Kuna.
The changes in the value-added tax mean, among other things, that small businesses only have to pay value-added tax on the collected revenues and not on the invoiced amounts.