croatia

Tax base-reducing
deductions (“fromsalary”
deductions)
Pension insurance contributions:
- I. Pillar 15%
- II. Pillar 5%
Total “from-salary”
deductions 20%
Tax base-irrelevant
deductions (“onsalary”
deductions)
Health insurance
deduction
15%
Injuries deduction 0.5%
Employment
incentives deduction 1.7%
Total “on-salary”
deductions 17.2%
THE REPUBLIC OF CROATIA • 2003
GENERAL INFORMATION
STATE AUTHORITY
• 15% (up to 3,000 HRK per month or 36,000 HRK per year.)
• 25% (over 3,000 to 6,750 HRK per month or 36,000 to 81,000 HRK per year)
• 35% (over 6,750 to 21,000 HRK per month or 81,000 to 252,000 HRK per year)
• 45% (over 21,000 HRK per month or 252,000 HRK per year)
The income tax base for income arising from employment (gross salary) is reduced by paid compulsory deductions.
The income tax base for employment-based income can also be reduced by the amount of insurance premium
paid (based on life insurance, supplementary health insurance and voluntary pension insurance), but up to a
maximum of 1,050 HRK per month.
ECONOMY
Value-added Tax (VAT) Value-added tax (VAT) payer is:
• entrepreneur that delivers goods or provides services;
• importer;
• exporter (when goods delivered abroad have not been paid for in compliance with regulations governing for-
eign exchange transactions and foreign trade);
CULTURE
SPORTS
ADDRESSES
CROATIAN SPECIALTIES
• local entrepreneur who uses services provided by an entrepreneur with headquarters abroad.
An entrepreneur whose annual value of deliveries and services provided was not higher than 85,000 HRK in
the last calendar year is not subject to the VAT. Also, s/he is not allowed to specifiy tax amounts in his invoices
and is not granted the benefit of deducing the tax charged to him by other entrepreneurs.
The tax base in this case is the fee for delivered goods or provided services.
The VAT rate is 22% and 0%. The VAT rate is 0% for:
• all types of bread;
• all types of milk;
• books with professional, scientific, artistic, cultural and educational content, students’ books (pedagogy &
education: primary, secondary and university education) printed on paper or other text carriers, including CD-
ROM, video and audio tapes;
• medications specified in the Decision on Medications Listed by the Croatian Health Insurance Fund;