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The most important novelties in the Republic of Croatia in taxation with profit tax for 2024

  1. the withholding tax on business and tax consulting services and market research has been abolished, 
  2. application of the EU Directive to the European Economic Area (Norway, Iceland, Liechtenstein), when paying interest and royalties – exemption from withholding tax, 
  3. withholding tax rate raised from 20% to 25% when paying benefits to non-cooperative jurisdictions according to the EU list, 
  4. more clearly prescribed provisions according to which donations are tax-deductible if they are greater than 2% of the income of the previous year, when it is a matter of financing strategic projects according to special regulations or the strategy of the competent ministries, and based on the Decision of the competent ministry with the consent of the Government of the Republic of Croatia, 
  5. the currency of tax payment and tax refund per annual calculation was changed on the last day of the deadline for submitting the income tax return, 
  6. rounding of amounts from the Income Tax Act that are expressed in euros to more practical amounts, all for the benefit of taxpayers, for example, the criterion for paying income tax at a rate of 10% from EUR 995,421.06 to EUR 1 million.

For any additional information you can contact us through:

phone number: 021 / 272-990, 272-781

e-mail: info@babantax.com

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