Croatia’s government has published proposed amendments to the General Tax Act and launched a public consultation.
The consultation is set to conclude on 24 October 2024.
Once enacted, the amendment will take effect on 1 January 2025.
Shareholders will be considered guarantors
Under the proposal, if a company fails to submit its monthly or annual tax returns, shareholders may be deemed guarantors for the tax liability for the relevant period. Taxpayers can appeal the tax authorities’ decisions regarding liability and the designation of shareholders as guarantors.
Enhance electronic communication in taxation
The government has proposed several amendments to the General Tax Act to increase electronic communication between taxpayers and tax authorities. The government proposed electronic tax filing mandates for self-employed individuals, corporations, individuals with rental income from tourism properties, and international ship crew members. Tax authorities will provide documents only electronically to those who agree to electronic communications during tax filing.
Extension of the tax audit period to six years
The government is considering extending the tax audit period from three years to six years for taxpayers involved in cross-border activities.
Halting card payments for illegal online businesses
The government proposes stopping payment service providers from processing card payments for businesses operating illegally online, including unlicensed betting sites.
