News from Croatia

  • Croatian Tech Companies drive economic growth and development
    The Technology Fast 50 Report for 2017 showed an interesting development among Croatian tech companies. The said report featured 8 Croatian companies in this year’s edition. Specifically, the featured companies included: Rimac Automobili (ranked 10 out of 50), Code Consulting (23/50), Telum (25/50), Profico (28/50), Undabot (35/50), Hangar 18 (40/50), Gauss (45/50) and Infinum (49/50). The eligibility criteria included the...
  • Croatia simplifies registry of employees and working hours
    A New Ordinance on the content and method of maintenance of employees’ registry (NN 73/2017) is to enter into force on September 1, 2017, aiming at the simplification of the employer’s obligation to keep records of its own employees as foreseen by art. 5 of the Croatian Labor Act. It is important to remember that employers who fail to act...
  • Croatian authorities warn against European Business Number (EBN) scam
    Many Croatian entrepreneurs have recently received a letter urging them to apply for a so-called EBN (European Business Number). The letter contains a form with a fictitious deadline and was sent to a large number of recipients to multiple countries, this time particularly targeting Dutch companies. It is not the first time that the Hamburg-based company DAD Deutscher Adressdienst GmbH...
  • Croatian local taxes: what is new in 2017?
    The Local Taxes Act (“Act“), as a part of the 2017 Croatian Tax Reform, entered into force on January 1, 2017. The main change includes the introduction of the new Real Estate Tax (not to be confused with the Real Estate Transfer Tax) and the abolishing of the Company Name Tax. Aside from the Real Estate Tax, no further taxes...
  • Croatia implements Advance Pricing Agreements (APAs)
    APAs were recently implemented in the Croatian tax legislation. Our Transfer Pricing team briefly presents the main points of the Croatian legislation related to an APA. Transfer pricing legislation was introduced in Croatia by way of the Corporate Income Tax Act (CIT) on 1 January 2005. However, the Croatian tax authorities have only recently recognized its importance. The implementation of...
  • To Petya or NotPetya; this is how to protect yourself!
    A new ransomware has risen and is spreading across Europe like wild fire. This new malware is creating chaos across businesses, from supermarkets to shipping ports, ad agencies and law firms. The new ransomware - code named “NotPateya” - shares some very similar characteristics to a very recent malware “Wannacry”. About NotPateya NotPateya gets its name from an older malware...
  • Saving Agrokor, Croatia’s biggest food and retail concern
    Over the past few months, Croatia’s economy focus is primarily set upon the status of its biggest food and retail group, Agrokor d.d. The company that employs around 60,000 people in Croatia, Slovenia, Serbia, Bosnia & Herzegovina and Hungary and the core business of which - Konzum supermarkets - engages over 2,500 suppliers, is facing bankruptcy. The accumulated debt of...
  • OECD’s BEPS 13 implemented in Croatia
    With a total of 15 action points, the OECD’s Base Erosion and Profit Shifting (BEPS) project aims at fighting the artificial shift of profits from jurisdictions with high taxes to tax havens, often as a part of an entirely legal strategy used by MNEs. The BEPS Action 13 (Transfer Pricing Documentation and Country-by-Country Reporting) imposes to multinationals the so-called Country-by-Country...
  • Službe za zapošljavanje u Hrvatskoj
    Zakonski okvir Osnovni zakoni koji reguliraju zapošljavanje u Republici Hrvatskoj su Zakon o radu, Kolektivni ugovori, Zakon o obveznim doprinosima te propisi o zaštiti prava zaposlenika. Poslodavci, zaposlenici i sindikati mogu ugovoriti radne uvjete koji su povoljniji za zaposlenika od onih propisanih Zakonom o radu, ali isto tako mogu biti ovlašteni ugovoriti i nepovoljnije uvjete. Plaća za rad je regulirana...
  • Hrvatska: Važna porezna reforma koja stupa na snagu u siječnju, 2017
    Prvog siječnja 2017 godine Hrvatska se suočila sa novim, preustrojenim poreznim sustavom, koji bi prema riječima Vlade trebao stati na kraj praksi čestih izmjena, te konačno postaviti temelje za investitorski atraktivno okruženje.  Vlada je pripremila sveobuhvatnu reformu izmjenom čak petnaest zakona vezanih uz poreze. Većina propisa stupa na snagu 1.1.2017. uz nekoliko iznimaka koje se počinju primjenjivati u 2018. ili...
  • Employment Services in Croatia
    Applicable Laws The main laws that regulate employment in the Republic of Croatia include Labour Acts, Wage Directives, Social Security Acts and Employment Protection Acts. Employers, employees and trade unions can stipulate working conditions more favourable to the employees than the ones prescribed by the Croatian labour acts as well as less favourable if authorised to do so. Labour wages...
  • Croatia: Important Tax Reform effective from January 1, 2017
    On January 1, 2017, Croatia woke to a new, reformed tax system which, the Government hopes, aims at ending the frequent and endless amendments and finally sets the grounds for an attractive investment environment. The Government has delivered a comprehensive reform by changing as many as 15 tax-related acts. Most of the provisions have entered into force on January 1,...
  • Croatia adopts new anti-avoidance measures
    By 9th of June 2016 there is no tax exception or tax relief will not be granted to any arrangement or a series of arrangements whose main purpose is to obtain a tax advantage, after analyzing all the relevant facts and circumstances. The EU Parent-Subsidiary Directive (2011) as amended by Directive 2015/121 has been implemented into Croatian law. The Law was published in Official...
  • Croatian Transfer Pricing Regulations
    Although Croatia is not an OECD member country, the provisions of the relevant Croatian tax legislation are generally based on the OECD Transfer Pricing Guidelines. Transfer pricing rules are prescribed by Article 13 of the Corporate Income Tax (CIT) Act and by Article 40 of the CIT Bylaw. Who is affected? Pursuant to the relevant provisions (art 13 of the...
  • Latest Amendments to Croatian Corporate Income Tax Act
    On May 13th, 2016, the Croatian Parliament implemented the EU Directive and amended the Croatian Corporate Income Tax Act which was published in the Official Gazette no. 50/2016 and entered into force on June 9th, 2016. The amendment essentially introduces an article by which all tax exemptions, tax reductions, tax reliefs and other benefits provided for by Corporate Income Tax...
  • Croatia publishes new bylaw on Automatic Exchange of Information
    In line with the EU directive 2011/16/EU and appendix I and II to the EU directive 2014/107/EU, the Croatian Ministry of Finance has enacted a Bylaw on Automatic Exchange of Information in Tax Matters which was published in the Official Gazette no. 69/2016. The said Bylaw clarifies in detail the provision of Article 177 of the Croatian General Tax Act...
  • Latest Amendments to the Accounting Act, Effective as of January 1st 2016
    As of January 1st 2016, new amendments to the Accounting Act have been entered into force thereby enacting the provisions of the EU Directive no. 2013/34/EU. Besides the Directive, Croatian Tax Administration had some involvements which consequently amended provisions regarding the accounting activities. Entrepreneurs are now classified in four major groups; micro, small, medium and large. Classification is determined for...
  • Croatia – Luxembourg Double Tax Treaty enters into force
    Croatia | April 2016 | Croatia and Luxembourg signed a treaty on the avoidance of double taxation on June 20th, 2014, which recently entered into force, on January 13th, 2016. The treaty applies to persons who are residents of one or both of the contracting states in regards to corporate income tax, personal income tax and any type of surtax...
  • USA and Croatia Sign FATCA Agreement
    Croatia/December 2015 On March 20, 2015, the Croatian Finance Minister and the US Ambassador in Croatia signed a Foreign Account Tax Compliance Act (FATCA). Initially planned to enter into force at the end of September 2015, the Croatian Tax Authority announced that the FATCA reporting deadline will be postponed until September 30, 2016. Once the Act enters into force, all...
  • Croatia amends Corporate Income Tax Act and VAT Act
    Croatia/October 2015 Corporate Income Tax Act Amendments The amendments in the Croatian Corporate Income Tax Act introduce changes in the regulation of small entrepreneurs as well as impact the tax benefits for reinvested profit. In order to be subject to profit tax as opposed to corporate income tax, small entrepreneurs now must have an annual revenue of at least HRK...