Tax amendments applicable from January 1, 2021

Non-taxable benefits in kind effective from September 1, 2019
31/08/2019

Amendments to the Income Tax Act, Profit Tax Act and Value added Tax act, all effective from January 1, 2021, are bringing reduced tax rates in several areas of which we stress out following:

TYPES OF TAXES OLD RATE NEW RATE
Income tax (from salary)
– up to 30,000.00 HRK per month
– above 30,000.00 HRK per month
24%
36%
20%
30%
Other income 24% 20%
Property income (rent, lease) 12% 10%
Income from real estate sale and property rights 24% 20%
Capital income (interest, capital gains, dividends, profit shares etc.) 12% 10%
Use of company property and resources 36% 30%
ESOP and share buyback taxation 24% 20%
Profit tax – up to HRK 7,5 million income
– above HRK 7,5 million income
12%
18%
10%
18%
Witholding tax on dividends and profit shares paid to foreign taxpayer other than a natural person 12% 10%

Also, the treshold for VAT taxation on the basis of charged fees for goods and services supply has been increased from HRK 7,5 million to HRK 15 million. Therefore all taxpayers who did not make deliveries in 2020. above HRK 15 million may calculate and pay VAT according to chareged fees starting from January 1, 2021. The application must be submitted no later than January 20, 2021.

 

Darka Cecić
Darka Cecić
Darka Cecić - CPA, CIA and educator on seminars and trainings with tax and financial reporting themes with more than 25 years of extensive experience in accounting and audit field. Continuously upgrades her knowledge through numerous education inland and abroad. Sharpened skills on audit engagements in SME and large companies from various industries and international groups.

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