Taxes in Croatia

Tax system

Current tax system includes the following taxes: Corporate income tax Personal income tax Value-added tax Special taxes (excise duties) on certain products Real estate transfer tax Levies on the organisation of games of chance County, municipal and town taxes

From the Constitution

Article 51 Everyone shall participate in the defrayment

of public expenses in accordance with their economic possibilities

The system of taxation shall be based on the principles of equality and equity

Croatian and EU tax system

The Croatian tax system is comparable to the tax systems of EU member states and is based on a number of direct and indirect taxes.

The Republic of Croatia guarantees the same legal position on the market to all entrepreneurs (domestic and foreign)

Read the text taxes in Croatia (p. 8) and answer the following questions:

What are the foundations of the Croatian economic system?

What does the Republic of Croatia guarantee to foreign investors?

Is the Croatian tax system an obstacle for the Croatian accession to the European Union?

What is the Croatian tax system based on? How does Croatia deal with the problem of double

taxation?

Read the information in the table (p. 9-11) and complete the following statements:

The tax base for VAT is the sales price of all _____________ delivered or _____________ performed.

Taxpayers of excise taxes on oil products are _________________________ of oil products and government body for __________________________.

The excise tax rate on alcohol is ____________________ of absolute alcohol.

Excise taxes on beer are regulated by _____________________________________.

The excise tax rate on coffee is HRK 5 to 20 per kg, depending on __________________________________.

Second-hand buyers of cars have to pay ____________________.

Complete the text:

assessed, direct, indirect, estate, corporate Croatia’s tax year is, in most respects, the calendar

year. The country’s tax structure includes both _______________ taxation through income taxes and profit taxes, and ___________ taxation through value added tax. In addition, there are excise taxes, real ____________ tax and local taxes. Income taxes are ________________ on individuals. The profit tax is essentially a ________________ tax.

Answer key

Croatia’s tax year is, in most respects, the calendar year. The country’s tax structure includes both direct taxation through income taxes and profit taxes, and indirect taxation through value added tax. In addition, there are excise taxes, real estate tax and local taxes. Income taxes are assessed on individuals. The profit tax is essentially a corporate tax.

Vocabulary

Entrepreneur – poduzetnik Double taxation – dvostruko oporezivanje Value-added tax – porez na dodanu

vrijednost Excise duties – trošarine Real estate – nekretnina Games of chance – igre na sreću