international tax summaries--CROATIA(1998)

international tax summaries--CROATIA(1998)

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MAJOR DEVELOPMENTS
Croatia has introduced an entirely new tax system in recent years,replacing the system inherited from the former Yugoslavia. There is,therefore, little record of application to specific situations, and care should be taken in interpreting the law.
  On January 1, 1998, VAT will be introduced at the rate of 22%.
INCOME TAXES ON CORPORATIONS
1. Rates
The tax rate is 35% of the taxable profit. Taxable entities are all legal entities whose activity is profit oriented and carried on in Croatia. The tax year corresponds to the calendar year.
  Tax consolidation within a group of companies is permitted if this means that an increase or decrease in participations in subsidiary companies is included in the profit account of the parent company.
7. Payment of Taxes
Taxpayers must file their tax declarations on the forms prescribed by the Ministry of Finance to the tax authority. The forms must be submitted to the tax authority by April 30 following the end of the tax year.
  Tax is paid in monthly installments in advance, based on the previous year?s accounts. The difference between the total sum of the advance payments and the tax payable must be paid immediately, on the day the forms are submitted. If the total sum of advanced payment exceeds the tax payable, a refund can be requested.
INCOME TAXES ON INDIVIDUALS
Personal income tax is automatically deducted from wages and salaries by the employer in the name of employees.
9. Rates
The rates of personal tax are as follows:
    Monthly Salary    Rate

    K0 ?K2,400    20%
    Over K2,400    35%
Taxable monthly salary is monthly salary minus personal tax allowances (K800 or more). All sources of income are totaled at the end of the year to arrive at a final tax liability. Income minus personal allowances up to K 28,800 (K 2,400 x 12) is taxed at 20%. Income above this is taxed at 35%.
        Taxable Income
                    Tax on    Percentage
    Over        Not Over    Lower Amount    on Excess
    
    K         0    K 28,800    K         0    20%    
     28,800                       5,760          35
INCOME TAX ON NONRESIDENTS
19. Tax Treaties Croatia is in the process of renewing tax treaties formerly held by Yugoslavia.
OTHER SIGNIFICANT TAXES
21. Sales (Value-Added) Taxes
Croatia has a sales tax system, which is not, however, a value-added tax system. The seller calculates the sales tax for every item of goods sold to the final consumer and transfers the tax to the tax authorities. Inputs to production are exempt from sales tax. The general sales tax is 20% plus a further 10% to the final consumer (i.e., individual), and the general sales tax on services is 10%. Some speCIAl tax rates are:
q    Food, beverages, basic hygiene, children?s clothes and shoes 5%;
q    Building materials ?10%;
q    Computers, art, electricity ?15%.
On January 1, 1998, VAT will be introduced at the rate of 22%.
23. Taxes on Payrolls (SoCIAl Security)
There are various soCIAl security taxes, which are paid by the
employer. Some, in theory, are employee contributions. In practice, however, employees? salaries are quoted net of all such contributions, and the employer is responsible for paying all contributions. The total rate for income taxes and taxes for soCIAl security is approximately 120% of net (pre-income tax) salary.
33. Other Matters
Corporation Tax. Corporation tax is calculated on the basis of income and expenditures included in the profit and loss account prepared under Croatian accounting standards (same as International Accounting Standards), subject to certain disallowances:
q    Excess depreCIAtion;
q    Penalties and fines;
q    30% of costs for cars used to transport people;
q    Entertainment costs;
q    Excess employee subsistence costs;
q    Donations;
q    Losses from selling investments (profit is an allowable appropriation);
q    Protection interest on decreasing capital during the year (protection interest on capital at the beginning of the year is an allowable appropriation).
  Interest and dividends arising on government (central and local)securities are exempt for tax purposes. Corporation tax is computed at 35% of adjusted taxable profits:
  Income ?Expenses + Disallowable Expenses ?Allowable
Appropriations = Taxable Profits    来源:CFTInet, Beijing      

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北京中立诚会计师事务所简介下载
地 址:北京朝阳区北苑路13号领地OFFICE大厦B座7层701室
电 话:(010)- 52086638 51095615
传 真:(010)- 52086636
邮 编:100107
E-mail:supercpa@163.com