Tax System
National taxes
a) VALUE ADDED TAX
Tax base: the compensation for the goods delivered or the services rendered.
Tax rates: 0%, 10% and 23%
b) CORPORATE INCOME TAX
Tax base (profit tax): Profit determined pursuant to the accounting regulations as the difference between revenues and expenditures before the profit tax assessment, increased and reduced in accordance with the provisions of The Profit Tax Law.
Tax rate (profit tax): 20%
Tax base (corporate income tax by withholding): Gross amount of a consideration paid by a resident payer to a non-resident recipient.
Tax rate (corporate income tax by withholding): 15%
c) SPECIAL TAXES
- - Special taxes on passenger cars, other motor vehicles, vessels and aircrafts
- - Special tax on mineral oils
- - Special tax on alcohol
- - Special tax on beer
- - Special tax on non-alcoholic beverages
- - Special tax on tobacco products
- - Special tax on coffee
- - Special tax on luxury products
- - Tax on liability and comprehensive road vehicle insurance premiums
County taxes
a) TAX ON INSURANCE AND GIFTS
Tax base: The amount of cash and the market value of financial and other assets on the day the tax liability is determined, after the deduction of debts and costs that relate to the assets on which the tax is being paid.
Tax rate: 5%
b) TAX ON ROAD MOTOR VEHICLES
Subject of taxation: A passenger vehicle (up to ten years old); a motorcycle.
Amount of taxation: The car is taxed according to the power of the engine expressed in kW and the age of the car.
c) TAX ON VESSELS
Subject of taxation: A vessel in terms of length expressed in metres, how old the vessel is, with or without a cabin, and the power of the engine expressed in kW.
d) LEVY ON COIN OPERATED MACHINES FOR AMUSEMENT
Subject of taxation: The coin operated machines for amusement that are put into use in arcades, catering facilities, public facilities and other public premises.
Amount of tax: 100 kuna per month per coin operated machine.
City or municipal taxes
a) SURTAX OR INCOME TAX
Tax base: The amount of income tax.
Tax rate: A commune at the rate of up to 10%, a city with a population below 30,000 at a rate of up to 12%, a city with a population over 30,000 at a rate of up to 15%
b) CONSUMPTION TAX
Tax base: The sales price of beverages sold in catering facilities.
Tax rate: up to 3%
c) TAX ON HOLIDAY HOUSES
Subject of taxation: A square metre of useful space in the holiday house.
Amount of tax: From 5 to 15 kuna per square metre of useful area.
d) TAX ON TRADE NAME
Subject of taxation: trade name.
Amount of tax: up to 2,000 kuna for each trade name.
e) TAX ON THE USE OF PUBLIC LAND
Subject of taxation: The public land that is used by legal entities and natural persons.
Amount of tax: The amount of the tax is prescribed by the individual commune or city.
Joint taxes
a) INCOME TAX
Tax base: The total amount of income that the taxpayer obtains inland and abroad (income from employment plus income from independent personal activities or self-employment plus income from property and property rights plus income from capital plus income from insurance plus other income) minus personal allowances.
Tax rates: 15%,25%,35%,45%
b) REAL ESTATE TRANSFER TAX
Tax base: The market value of the real estate at the moment of the acquisition that is the price of the real estate that is obtained or that might be obtained on the market at the moment of the acquisition.
Tax rate: 5%