Incentive Measures – Tax Advantages
In the case of an investment amounting up to EUR 1.5 million expressed in equivalent HRK value, the recipient of incentive measures shall be eligible for reduction of the profit tax rate by 50% of the statutory profit tax within a period of up to 10 years from the year in which the investment was first made, provided that the recipient provides for the creation of at least 10 new jobs linked to the investment, within three years after the year in which the investment was first made and the establishment of the eligibility status of the recipient of incentive measures.
In the case of an investment amounting from EUR 1.5 to 4 million expressed in equivalent HRK value, the recipient of incentive measures shall be eligible for reduction of the profit tax rate by 65% of the statutory profit tax within a period of up to 10 years from the year in which the investment was first made, provided that the recipient provides for the creation of at least 30 new jobs linked to the investment, within three years after the year in which the investment was first made and the establishment of the eligibility status of the recipient of incentive measures.
In the case of an investment amounting from EUR 4 to 8 million expressed in equivalent HRK value, the recipient of incentive measures shall be eligible for reduction of the profit tax rate by 85% of the statutory profit tax within a period of up to 10 years from the year in which the investment was first made, provided that the recipient provides for the creation of at least 50 new jobs linked to the investment within three years after the year in which the investment was first made and the establishment of the eligibility status of the recipient of incentive measures.
In the case of an investment exceeding EUR 8 million expressed in equivalent HRK value, the recipient of incentive measures shall be eligible for reduction of the profit tax rate by 100% of the statutory profit tax within a period of up to 10 years from the year in which the investment was first made, provided that the recipient provides for the creation of at least 75 new jobs linked to the investment, within three years after the year in which the investment was first made and the establishment of the eligibility status of the recipient of incentive measures.
The recipient of incentive measures must retain his eligibility status and maintain the investment and new employment linked to the investment during a minimum period of 5 years which shall not be shorter than the period in which it makes use of the incentive measures.
