On Labour Day the Croatian Prime Minister announced his government’s plan to implement a new wave of tax reforms by January 1st, 2024.
The intention of the tax reform is to increase net salaries without increasing overall costs for the employers.
There are currently several options under discussion:
a) Adjustment of non-taxable personal allowance
b) Decrease of mandatory pension contributions
c) Abolishing city surtax; and
d) Decrease of personal income tax rate(s)
The government is expected to present the package of tax reforms, including directions and more details, by the end of June.