July 26, 2019

GOVERNMENT PRESENTED THE 4th ROUND OF TAX REFORMS

On July 26, 2019, Prime Minister Andrej Plenković and Deputy Prime Minister and Minister of Finance Zdravko Marić presented the planned measures for the 4th round of tax reforms.

The main measures relate to:
– the tax breaks for the salaries of young people under 30, with 100% tax liability reduction for those under 25 years of age, and 50% tax liability reduction for those from 26 to 30 years of age;
– new non-taxable receipts;
– applying a 12% profit tax rate to entrepreneurs whose annual income is less than HRK 7.5 million, which will include additional 10,000 taxpayers in the application of this rate – 93% of legal entities;
– reduction of the general value-added tax rate from 25% to 24% and expanding the use of the reduced VAT rate of 13% to the preparation and serving of food in the hospitality sector.

From January 1, 2019, the Ministry of Economy, Entrepreneurship and Craft is in charge of investments processes in Croatia – invest@mingo.hr.