INCOME TAX In the case of taxation of natural persons, a taxable person may be considered a natural person who earns income or an heir for all tax liabilities arising from the income earned by the testator until his death. It is also possible to jointly acquire income in such a way that each natural…
LEGAL PERSONS Profit tax A company and other legal entity resident in the Republic of Croatia that performs economic activity independently, permanently and for the purpose of making profit or income or other economically assessable benefits is liable to pay profit tax, and the taxpayer is the domestic business unit of a foreign entrepreneur (non-resident)….
The realized net profit that the company established in the Republic of Croatia realizes by performing activities/services and decides to pay to the members of the company / founder is taxable by corporate tax after withholding (for legal persons) or the income tax from the capital (for natural persons). Members of the company who are…
In today’s practice, it is often the case that companies doing business in the Republic of Croatia are owned by natural or legal persons resident in the Republic of Germany. The following is an overview of the tax rates applicable to the taxation of dividend payments in case where the owner of a Croatian company…
A company is, by definition, a business entity that independently and permanently performs economic activity in order to make a profit by producing, trading goods or providing services on the market. The most common form of company that appears in Croatian practice is a limited liability company, and the minimum share capital required for the…
This article lists the tax specifics, i.e. the differences between the Federal Republic of Germany and the Republic of Croatia in terms of real estate levies, inheritance taxes and tax liabilities depending on the taxpayer’s residence. The differences in the tax arrangements of these two countries are not negligible, thus we present some of them….
Measures introduced as a result of the coronavirus epidemic (COVID-19) make it very difficult for people to move across borders, however the Croatian government has introduced some milder measures for people traveling for business reasons. Accordingly, from 28 February 2021, people traveling from countries / regions of the European Union / European Economic Area, although…
Electronic public auction is a relative novelty in the Croatian judicial system, which has greatly increased the transparency of participation in public auction and made it easier to participate remotely. When the sales of immovable property or movable property in public auction is ordered in execution, insolvency or other judicial proceedings, the court or other…
From January 1st. 2021, tax changes are introduced based on amendments and supplements to the Income Tax Act, the Corporate Tax Act and the Value Added Tax Act, from which we present the most significant changes in the following text. The amendment to the Income Tax Act reduces taxation rates From 24% to 20% for…
The insolvency proceedings (bankruptcy) in general shall be initiated by the debtor or creditor’s proposal. If all the conditions for opening insolvency proceedings have been met, then the court is seised of the order of opening of insolvency proceedings to be published on the e-board of the court. That order must include an invitation to…
