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Amendments on Personal income tax Regulation

Amendments on Personal income tax Regulation

In the last few years significant amendments to the personal income taxation legislation has resulted in a reduction of the tax burden.

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Tax

Extension of range of non-taxable employment receipts

In the last few years significant amendments to the personal income taxation legislation has resulted in a reduction of the tax burden.

This trend continues and as of 1st September 2019 the range of receipts that can be provided to employees as non-taxable has been extended.

 Amendments which have come into effect from 2019

tabela

Why this matters

The changes provide:
• additional possibilities for employers to structure remuneration packages;
• a reduction in the tax burden for those employers which already provide their employees with reimbursements as listed above;
• a positive impact on labour mobility within Croatia;
• an increase of competitiveness of Croatian employers and provide a positive effect on retaining workers in Croatia; and
• a positive impact on foreign investment into Croatia, because the costs of seconding foreign workers to work on projects in Croatia will be reduced.

Contact us

For additional information or assistance, please contact one of the following professionals with the KPMG in Croatia.

Paul Suchar

Tel. +385 1 5390 032

psuchar@kpmg.com    

Kristina Grbavac 

Tel. +385 1 5390 069

kgrbavac@kpmg.com  

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KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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