Taxes in Croatia

1
Taxes in Croatia
2
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

3
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

4
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.

5

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

6
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?

7
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
  ____________________.

8
Complete the text

• assessed, direct, indirect, estate, corporate
• Croatias tax year is, in most respects, the
  calendar year. The countrys 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.

9
Answer key

• Croatias tax year is, in most respects, the
  calendar year. The countrys 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.

10
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 srecu