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Author: Vaic

Vaic Law Office > Articles posted by Vaic (Page 2)
07 September
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Tax-deductible expenses in a Croatian d. o. o.

Posted by Vaic
in News

Limited liability companies are subject to corporate income tax. The difference between the increased or reduced revenue and expenditure according to the provisions of The Corporate Income Tax Law is used as the basis for tax assessment. There are several ways to reduce the tax basis. One of the best ways to do this and at the same time reward company employees is through tax-free payments to employees. Such payments increase the cost to the company, resulting in less tax being paid. The employer has a wide range of tax-free payments available to pay out to the employee. They are as follows: -...

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31 August
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Liquidation of the limited liability company

Posted by Vaic
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The procedure of calculating and dividing the assets of a company in which the reasons for termination have appeared is called liquidation, and it is carried out if the members do not agree on a different method of calculation and division or if the company is not declared bankrupt. It is carried out by all members of the company as liquidators, if the decision of the members or the memorandum does not stipulate that it should be carried out by individual members of the company or other persons. Liquidators must complete the current operations, collect the company's claims, monetize the remaining assets,...

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28 August
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A simple limited liability company (j. d. o. o. )

Posted by Vaic
in News

Establishment of a simple limited liability company (j.d.o.o.) is a procedure by which a legal entity is established that enables owners to operate under the protection of limited liability. This type of company is often a preferred option for small and medium-sized enterprises, as it provides some certainty and flexibility in the conduct of business. The business of a simple d.o.o. can be started with the lowest amount of share capital of EUR 1,00 paid in full in cash, and the lowest amount of business stake is also EUR 1,00. A simple limited liability company is established using pre-prepared forms and...

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25 August
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A limited liability company (d.o.o.)

Posted by Vaic
in News

Limited liability company is the most common form of company in the Republic of Croatia. It is defined by Article 385 of the Law on companies as a company in which one or more legal or natural persons contribute to the pre-agreed share capital. The minimum amount of the share capital of a limited liability company is 2,500.00 EUR. Establishing a limited liability company makes sense for several reasons. One of them is certainly tax. Thus, the d.o.o. that generated revenue up to 995,421.06 EUR pays the tax at the rate of 10%, while the d.o.o. that generated revenue above 995,421.06 EUR...

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29 June
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Tax specifities and differences between Germany and Croatia

Posted by Vaic
in News

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. Real estate levies In the Republic of Croatia, property owners do not pay the annual real estate tax, unless it is a holiday home, but a fee is paid in the form of a utility fee, which must be determined by a decision on the utility fee....

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20 June
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Possibilities of recovery from insolvent debtors (bankruptcy)

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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 insolvency creditors to lodge their claims to the insolvency liquidator within 60 days of the publication of the opening of the insolvency proceedings. If the creditors do not lodge their claims within that period, they shall then lose the possibility to recover their claims. If you...

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14 June
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Tax benefits of corporate income taxation in the Republic of Croatia

Posted by Vaic
in News

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 establishment of this company is 2.500,00 EUR. Frequently asked questions when founding a limited liability company mostly focus on the amount of the tax rate at which profits are taxed, and the amount of the tax rate that is applied to the payment of profits paid to...

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07 June
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Tax treatment of real estate purchase in the Republic of Croatia as a citizen of a EU Member State

Posted by Vaic
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If you, as citizens of EU Member States, intend to acquire ownership of a vacation home or other real estate property in the Republic of Croatia, whether for private or business purposes, your sale and purchase transaction in the Republic of Croatia is subject to a certain tax liability. You can find out more about this below. Natural persons, as citizens of EU Member States, have the same rights to acquire real estate in the Republic of Croatia as Croatian citizens, with the exception of agricultural land and real estate considered protected property under special regulations. Such citizens are considered non-residents in...

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06 June
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Means of Acquisition of Ownership in the Republic of Croatia

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There are several ways of acquisition of ownership in the Republic of Croatia, namely: by legal act by judicial decision or decision of another competent authority by succession and by law. For the acquisition of ownership, the general requirements prescribed by the Act on Ownership and Other real Rights must be met – that is, the ability of the property to be the object of ownership, the ability of the acquirer to acquire the right of ownership and a valid legal basis for the acquisition.Depending on means of acquisition (movable or immovable property), also some other specific requirements need to be satisfied. Besides earlier mentioned general...

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31 May
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Taxation of the payment of dividends and shares in the profit of a Croatian company regarding German tax residents

Posted by Vaic
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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 is a legal or natural person and a German tax resident. I. Taxation of the company’s profit – in general The operating profit of a company with a turnover of up to 995.421,06 EUR in annual income is taxed at a rate of 10%, and the profit of...

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