ZAGREB, Aug 21, 2020 – The Finance Ministry has put up for public consultation documents for amending four taxation laws: income tax, profit tax, and Value Added Tax laws and legislation on fiscal receipts in cash flow, the Jutarnji List daily said on Friday.
The finance ministry recalls its promises on the continuation of the reduction of the tax burden and underlines that the income tax legislation will be amended with the aim of facilitating efforts to increase the amount of after-tax available income to citizens.
To this aim, the income tax brackets will be lowered: the current 36% will be scaled down to 30%, 24% to 20%, and 12% to 10%, and the changes could go into force in early 2021.
This move will increase the available income after tax from 100 kunas for lower wages to 800 kunas for the highest gross monthly wages.
The profit tax is likely to be cut from the current 12% to 10% for small and medium-sized companies with the annual earnings up to 7.5 million.
The national VAT regulations are going to be adjusted to the European Union’s directives.
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