On 12 November 2020, the Croatian Parliament announced that the Government sent four tax reform Bills, which provide changes in corporate income tax, personal income tax, and value added tax (VAT). Some of the changes including the Bills are given below:
- The small and medium enterprises (SMEs) with annual revenue of up to HRK 7.5 million are subject to 10% corporate tax rate (previously, the rate was 12%) from 1 January 2021.
- From 1 January 2021, the two-bracket individual income tax rates are reduced from 36% and 24% to 30% and 20%.
- The VAT exemption for low value imported goods from third non-EU countries is repealed from 1 July 2021.
- the reform bills also contain a reduction in the dividend withholding tax rate from 12% to 10%.
