Taxes - Accounting

Croatia

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: Value Added Tax. In croatian : Porez na dodanu vrijednost, PDV.
Tax rate: 23%
Reduced tax rate: 0% on bread, milk, technical and educational books, medicines (approved by the national state health insurance office), surgical material for implants, scientific magazines, national film department.
10% on accomodation services, daily and periodic newspapers/magazines (if not for advertisement purposes)
Other consumption taxes: There are excise taxes on oil based-products, tobacco, alcohol drinks, soft drinks, coffee, personal cars and luxuries. Some Local Authorities also impose taxes (3% on the selling price of drinks in catering activities, taxes on the advertisement).

Corporate taxes

Tax rate

Corporate Income Tax (Profit Tax)

20%

Capital gains taxation: Capital gains are included in taxable income and subject to tax at the normal corporate income tax rate.
Main allowable deductions and tax credit: Deduction for depreciation and depletion, bad debts (under conditions), certain research and development expenses, and certain training and education expenses up to a limit.
Other corporate taxes: Real estate transfer tax, social security contributions, inheritance and gift tax, forest contributions, tourism contributions, cultural monument contributions.

Individual taxes

Tax rate

Personal income tax	Progressive rates from 15% to 45%
HRK 0 - 43,200	15%
HRK 43,200 - 108,000	25%
HRK 108,000 - 302,400	35%
Above HRK 302,400	45%

Allowable deductions and tax credit: For family with children, for individuals living in certain recognized undevelopped areas, for self-employment, for research costs of self-employed persons.
Special expatriate tax regime: There is no special tax regime for expatriates.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the double Taxation Agreements signed.
Withholding taxes: Dividends: 0%, Interest: 15%, Royalties: 15%
Bilateral agreement: Croatia and Tunisia are bound by a double taxation treaty: no

Signed	Ratified	Enforced

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Croatian Tax Administration Office
Other domestic resources: Investment guide of the Trade and Investment Promotion Agency

Accounting Rules

Tax year

The fiscal year begins on January 1st and ends on December 31 of the same year.

Accounting standards

In Croatia, International Financial Reporting Standards (IFRS) are mandatory for big companies and for those that have their bonds on the stock exchange market. All the others can also report respecting the rules set by Croatian Committee for Financial Reporting Standards, a 9-members professional body appointed by the government.

Accounting regulation bodies

Croatian Committee for Financial Reporting Standards (in Croatian only)

Accounting reports

These documents must contain: a balance sheet, a profit and loss account, a cash-flow report, a review of the changes of the authorized capital, comments and annexes.

Publication requirements

The Croatian entrepreneurs are subjected to the obligation of information about their financial situation. The documents of financial information must be drafted in Croatian and expressed in the national currency (the Croatian kunas) usually once per calendar year. A business year can be different from the calendar year only if there is an exception or if the activity is a seasonal one. The account book and the ledger must be kept up to date and then kept during at least 11 years.

Professional accountancy bodies

Croatian Association of Accountants and Financial experts

Certification and auditing

The financial documents of firms with more than 30 million croatian kunas (approx. 4.3 mil. EUR) annual sales should be checked by an independent external auditor who will have the responsibility to guarantee the sincerity and the accuracy of the given information.

Deloitte, KPMG, PricewaterhouseCoopers, Ernst & Young.

The State Audit Office

Croatian Auditing Chamber (in Croatian only)

Accounting news

IAS Plus
Tax-Fin-Lex provides information on Taxes, Finances and Legislation (in Croatian only).