United States and Croatia sign their first income tax treatyJanuary 2023
On 8 December 2022, the United States and Croatia signed their first convention for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income (Treaty).
With this development, Croatia becomes the latest, and the only remaining, European Union (EU) member state to sign its first tax convention with the US.
Croatia Taxes 2020January 2020
Starting January 1, 2020 companies with annual income of less than HRK 7.5 million, about EUR 1 million, will pay a 12% corporate income tax.
For individuals the monthly personal allowance is increased from previous HRK 3,800 to HRK 4,000.
There is a new reduced 13% reduced V.A.T. rate relating to food serving services and certain phonographic rights.
Croatia U.K. Tax TreatyFebruary 2015
Croatia and the U.K. signed on January 15, 2015 a new double tax treaty replacing the previous 1981 double tax treaty, DTA, between the U.K. and the former Yugoslavia.
According to the tax treaty the withholding rate for dividends will be 0%/5%/10%/15% The withholding rate for interest will be 0%/5% and 5% for royalties
Croatia Tax rates 2012April 2012
In 2012 the personal income tax rates in Croatia are progressive varying from 12% to 40%.
The corporate income tax rate is 20%.
The standard V.A.T. rate is 23%.
There is also a reduced V.A.T. rate of 10%.
Croatia Tax News 2009October 2009
From 1.8.2009 the standard V.A.T. rate in Croatia is 23%, replacing the previous V.A.T. rate of 22%.
From 1.8.2009 there is a new crisis tax imposed on individuals, in addtion to the income tax.
The rate of the crisis tax is 2% for monthly income of HRK 3,000 to HRK 6,000
For mothly income exceeding HRK 6,000 the crisis tax rate is 4%.
The crisis tas is imposed in the period starting 1.8.2009 to 31.12.2010.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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