As Poslovni Dnevnik writes, tax returns can be submitted via the ePorezna (eTax) system, the mPorezna mobile application (app), by using an internet banking token or any NIAS minimum level three application credential, or to the competent branch of the Tax Administration according to your registered place of residence.
It’s important to note that the Income Tax Act stipulates that persons in employment (not those who are self-employed) who are up to 25 years old are completely exempt from paying income tax entirely. In other words, all the tax and surcharges paid by them will be returned to them through a tax refund. Employed persons between the ages of 26 and 30 are also exempt from paying 50 percent of this tax and half of the paid amount will also be returned to them, according to Srednja.hr.
Who will get half back and who is set to get a 100% Croatian tax refund?
This is the regulation that has been valid as of the year 2020, and for 2022, according to it, people up to the age of 30 will receive the highest Croatian tax refund of all. It should also be noted that this regulation doesn’t apply to students who are employed through a student contract through the student service.
“According to the regulations on income tax, natural persons up to the age of 30 who earned a salary during 2022 will, as they did back during the previous year, have a reduced amount in the annual calculation of the tax liability calculated on part of the tax base up to 360,000.00 kuna (47,780,28 euros). Individuals born in the period from 1992 to 1996 have the right to a reduction of their tax liability for the annual income tax calculation for 2022 by 50 percent, while individuals born in 1997 and later have the right to a reduction of their tax liability by 100 percent,” the Tax Administration explained.
The Tax Administration also stated that, if persons are not obliged to submit an annual tax return (DOH Form), the right to a refund of overpaid tax during the year 2022 will be determined by the Tax Administration ex officio by a decision in a special procedure without the obligation to submit the ZPP-DOH Form.
In the event that they’re also liable for submitting the annual tax return, they will exercise their right to a refund through the submitted annual tax return. Persons liable to submit an annual tax return (DOH Form) are natural persons who, during 2022, earned income from self-employment and activities on the basis of which the income will be determined and taxed as income from self-employment on the basis of business books (e.g. trade activities, etc.) and taxpayers/residents for income from self-employment that, according to a special law, they earned as crew members of a ship in international navigation, regardless of the number of days they spent on the ship in international navigation, as explained by the Tax Administration.
They estimate that a similar number of people will receive a Croatian tax refund under this regulation as last year – approximately 153,000 people, in the total amount of around 91 million euros. They also revealed when these people can roughly expect the returned funds to show up in their bank accounts.
“It’s expected that the majority of refunds according to the annual income tax calculation for 2022 will be made by the end of May 2023. Croatian tax refunds will be issued to those taxpayers who meet the conditions for a refund, continuously according to the order in which the decisions will be issued,” says the Tax Administration’s response to Srednja.hr.
You can calculate the approximate amount that will be returned to you…
There’s an informative calculator on the Tax Administration’s website, which you can use to calculate how much your Croatian tax refund will be, as well as the surcharge you can expect on your bank account. You can access the calculator by clicking here.
When using the form, you first need to enter the year for which you want to calculate the return, i.e. 2022. Then, in the drop-down menu, you select the age group you belonged to in 2022, and then enter your salary information. Gross receipts paid, contributions paid, annual personal deductions, income tax and surtax paid, and the surtax rate according to the place where you live are requested – all this is on an annual basis. By clicking on the icon which says ”Annual calculation of taxes and surcharges”, you will get to the return calculation, which, it should be emphasised, is of an informative nature only.
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