Croatia has a multi-level taxation system that covers both legal entities and individual entrepreneurs (IEs). Let us consider the main taxes applicable to these categories of taxpayers.
Main taxes for legal entities in Croatia:
- Corporate income tax (Porez na dobit), its amount is 12% for companies with annual income up to 3 million HRK and 18% for companies with annual income over 3 million HRK.
- Value added tax (PDV – Porez na dodanu vrijednost), its rates are standard – 25%, and reduced rates: 13% and 5% for certain goods and services.
- Dividend tax, 15% rate on distributed profits.
There are separate taxes for individual entrepreneurs.
- Income tax (Porez na dohodak). Its rates are a progressive scale from 15% to 45%, depending on the level of annual income.
- Social security contributions. The general rate is 36.5%, which includes pension and medical contributions.
- Value added tax (PDV) – liability: Individual entrepreneurs are required to register as VAT payers and submit regular declarations if their annual turnover exceeds certain thresholds.
Other taxes and fees
- Inheritance and gift tax:
- Rate: 5% of the value of the property received.
- Real estate transfer tax (Porez na promet nekretnina):
- Rate: 3% of the value of the property at the time of purchase.
- Vehicle tax:
- Rate: Depends on the type and power of the vehicle.
The Croatian tax system is characterized by progressive and diverse taxes, which requires careful planning and accounting when doing business.It is recommended to consult with professional tax advisors to ensure compliance with current legal requirements and optimize the tax burden.
Source: http://relocation.com.ua/osoblyvosti-systemy-opodatkuvannia-v-khorvatii/
CROATIA, TAXATION
