Below is a brief overview of the latest changes and proposed amendments to tax regulations.
The cost of testing for coronavirus or other infectious diseases paid by employers for their employees is not subject to personal income tax and social security contributions.
Non-cash payment of import VAT
VAT on import of goods imported until 31 December 2020 can be paid based on the reverse-charge mechanism i.e. without physical payment.
Amendments to VAT regulations in accordance with EU Directives
In accordance with the amendments to the EU VAT Directives, Croatia as a Member State is obliged to apply the following amendments to the VAT regulations which will enter into force in 2021:
Proposed amendments to tax legislation
The Ministry of Finance has proposed amendments to VAT, Personal Income Tax and Corporate Profit Tax legislation. Please see below brief overview of proposed amendments.
Value Added Tax
Personal Income Tax
Corporate Profit Tax
The proposed amendments to tax legislation have yet to be submitted to the parliamentary procedure prior to adoption. We will subsequently inform you on the accepted amendments to tax legislation.