New in 2021 - Contest

We bring you an overview of the most important changes that come into force on 1.1.2021

New amount of minimum wage for 2021 is the gross amount of HRK 4.250,00 for full-time work, which increases the minimum net salary to HRK 3.400,00
The minimum base for the calculation of contributions for employed members of the Management Board from January 2021 will amount to HRK 5.967,65 (instead of HRK 5.682,30 as it was in 2020).
The maximum monthly basis for calculating pension insurance contributions will amount to HRK 55.086,00 or HRK 661.032 annually.
Tax free pay outs (christmas/easter bonuses, rewards for work results, for hot meals) are exempt from enforcement from 28.11.2020 and are paid to the protected accounts of employees under enforcement.
Reduction of income tax rates from 24% to 20%, from 36% to 30% and 12% to 10%.
The declaration of income from property realized from rent and lease of movables and real estate will be submitted to the Tax Administration by notaries public if their contracts are certified.

The corporate income tax rate for taxpayers with income of up to HRK 7.5 million is reduced from the previous 12% to 10%, and the amendment to this law is also harmonized with the amendments to the Income Tax Act, whereby the withholding tax rate will be reduced and profit shares, to foreign persons who are not natural, to be reduced from 12% to 10% because the Amendments to the Income Tax Act also reduce the capital income tax rate realized on the basis of dividends and profit shares from 12 to 10%.
Reduction of the withholding tax rate for performances by foreign performers (artists, entertainers, athletes, etc.) from 15 to 10%.
The interest rate on loans between related parties for tax purposes for profit for January 1, 2021 is 3.00% per annum (until 31.12.2020 it was 3.42%)

The obligation to display the QR code on each issued and fiscalized invoice is introduced (valid only for cash payment).
The obligation to carry out the process of fiscalization of sales through self-service devices begins.
It is expected that the Minister of Finance will prescribe the amount of the cash maximum according to certain categories of taxpayers.

The possibility of collected fees payment of VAT on import is introduced if the eligible taxpayer requests it by filling in the customs declaration accordingly.
The threshold for the application of taxation according to the collected fees is increased from HRK 7.5 million to HRK 15.0 million.
VAT exemption is abolished (from 01.07.2021) for import of small value goods (up to EUR 22) from third countries
The sale of goods at a distance is regulated by taxing the value of the threshold of HRK 77,000.00 in the Member State in which the recipient of the goods who is not a taxpayer resides. (from 1.7.2021)

From 1 January 2021, VAT rules on imports and exports will apply to supplies of goods between EU Member States and the UK. This means that taxpayers will be required to pay VAT on imports of goods from the UK into the EU and will be subject to a customs procedure when exporting goods from the EU to the UK.

The City Assembly of the City of Zagreb passed the Decision on Amendments to the Decision on Local Taxes and Surtax on Income Tax (Official Gazette, No. 140/20). The decision deleted the articles on the obligation to pay consumption tax for caterers of the City of Zagreb.
The decision will take effect on January 1, 2021.

Reduction of rates for calculation and payment of Tourist membership fee by 12%.
Reduction of compensation for public forest functions from 0.0265 percent of annual revenue to 0.024 percent.
The new minimum hourly rate for student service is HRK 26.56.
Payment of the national benefit for the elderly in the amount of HRK 800 / month to citizens over the age of 65 who have not provided income for old age and do not exercise the right to a pension begins
At the beginning of 2021, the quota model for the employment of foreigners from third countries will be abolished and a new model based on the opinion of the Croatian employment service will be introduced. It should facilitate the employment of foreigners.