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Croatia: Tax law changes, effective in 2018

Croatia: Tax law changes, effective in 2018

Tax law amendments in Croatia that are effective beginning in 2018 include the following:


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  • The tax deductible amount of company car expenses is decreased from 70% to 50%.
  • The arm’s length interest rate for corporate profit tax purposes on loans between related parties is 4.55% per annum, effective 1 January 2018. This reflects a decrease from the deductible interest rate on loans (including loans with foreign related parties) previously set at 4.97% per annum.
  • Concerning value added tax (VAT), there is a new threshold for VAT registration and new rules concerning VAT on certain equipment and machinery imports.
  • Changes to the individual (personal) income tax rules reflect measures for claiming dependents, seasonal workers, employer-provided loans, and other provisions.


Read a January 2018 report (Croatian and English) prepared by the KPMG member firm in Croatia

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