​INCOME TAX​

 

​TAXPAYER
​A natural person who acquires an income. If several natural persons jointly acquire an income, each natural person separately is a taxpayer, in respect of his/her share in the jointly acquired income.
An heir in respect of all tax liabilities arising from an income acquired by the testator until his/her death. An heir shall also be a taxpayer in respect of the income coming from inherited sources of income.
Sources of income:
1.Income from employment,
2.Income from independent personal activities (self-employment),
3.Income from property and property rights,
4.Income from capital,
5.Income from insurance,
6.Other income.
RESIDENT
1. A resident shall be a natural person who has domicile or habitual residence in the Republic of Croatia.
2. A resident shall also be a natural person who has neither domicile nor habitual residence in the Republic of Croatia but is employed in the civil service of the Republic of Croatia and receives a salary on that basis.
NON-RESIDENT
A non-resident shall be a natural person who has neither domicile nor habitual residence in the Republic of Croatia, but acquires an income in the Republic of Croatia which in subject to taxation pursuant to Income Tax Act.
​TAX BASE
TAX BASE OF A RESIDENT:
The total amount of income that the taxpayer obtains inland and abroad (income from employment + income from independent personal activities or self-employment + income from property and property rights + income from capital + income from insurance + other income) - personal allowances.
Income from independent personal activities (self-employment income) acquired by a resident in Croatia and abroad shall be reduced by:
1.the amount of salaries of the newly employed persons,
2.the amount of state grants for education and training and apprenticeship for crafts and trades occupations pursuant to special regulations,
3.the amount of expenses for research and development, and
4.the loss carried in Croatia and abroad.
TAX BASE OF A NON-RESIDENT:
The total amount of income that the taxpayer obtains in Republic of Croatia (income from employment + income from independent personal activities or self-employment + income from property and property rights + income from capital + income from insurance + other income) - personal allowance.
Income from independent personal activities (self-employment income) acquired by a non-resident in Croatia shall be reduced by:
1.the amount of salaries of the newly employed persons,
2.the amount of state grants for education and training and apprenticeship for crafts and trades occupations pursuant to special regulations,
3.the amount of expenses for research and development, and
4.the loss carried in Croatia.
​TAX RATE
MONTHLY TAX BASE
ANNUAL TAX BASE
TAX RATES
Up to HRK 2.200,00 Up to HRK 26.400,00 12%
Over HRK 2.200,00 up to HRK 13.200,00 Over HRK 26.400,00 up to HRK 158.400,00 (the next HRK 132.000,00) 25%
Over HRK 13.200,00 Over HRK 132.000,00 40%
​TAX REGULATIONS Income Tax Act, (Official Gazette of RC 'Narodne novine' No. 177/04, 73/08, 80/10, 114/11, 22/12, Decision CCRC 120/12, 144/12, 125/13, 148/13, 143/14).
​Regulations on Renting of Flats, Rooms and Beds to Travelers and Tourists and Organizing Campsites which will be Presumptively Taxed, on the Amount of the Presumptive Tax and on the Method of Payment of the Presumptive Tax (Official Gazette of RC 'Narodne novine' No. 48/05, 148/09).
Regulations on Presumptively Taxation of Independent Activities (Official Gazette of RC 'Narodne novine' No. 143/06, 61/12, 160/13).
​Regulations Concerning Income Tax, (Official Gazette of RC 'Narodne novine' No. 95/05, 96/06, 68/07, 146/08, 2/09, 9/09 - correction, 146/09, 123/10, 137/11, 61/12, 79/13, 160/13, 157/14). ​