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Taxation in Croatia

From Wikipedia, the free encyclopedia

Taxes in Croatia are levied by both the central and the regional governments. Tax revenue in Croatia stood at 26.6% of GDP in 2013.[1] The most important revenue sources are income taxes, social security contributions, corporate tax and the value added tax, which are all applied on the national level.

Income earned in Croatia is subject to a progressive income tax, of three different brackets.[2]

Annual income Rate
In between 0 HRK and 26,400 HRK 12%
In between 26,400 HRK and 105,600 HRK 25%
In excess of 105,600 HRK 40%

VAT in Croatia is levied at three different rates. The standard rate is 25 percent, two reduced rates are 13 and 5 percent apply on different goods and services.[3] The 13% rate apply for newspapers, magazines, bread and milk; books and scientific journals, hotels and medicines.[4]

Employment Income is subject to social security, at a rate of 15.2% for the employer and 20% for the employee.[5]

Insurance policy Total Employee % Employer %
Pension Fund 15% 15% -
Capital savings 8.00% 5% -
Health - - 13.0%
Unemployment 1.7% 1.7% -
Contribution for employees with disabilities 0.1% - 0.10%
Contributions against injury at work 0.50% - 0.50%
Total 35.2% 20.0% 15.2%

Corporate tax is levied at a rate of 12% for revenue less than 3 million kn and 18% for more. Certain expenses are tax deductible for businesses including personal means of transportation. Resident businesses are taxed on worldwide income, while foreign companies in Croatia are taxed on profits earned in Croatia.[6]

References

  1. ^ "Tax GDP".
  2. ^ "Income Tax Croatia - 2014".
  3. ^ "VAT in Croatia - KPMG" (PDF).
  4. ^ "VAT - 2014" (PDF).
  5. ^ "KPMG - Social Security".
  6. ^ "KPMG - Tax Card 2013" (PDF).

Further reading


This page was last edited on 1 August 2019, at 05:41
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