Croatia has introduced amendments to its taxation laws concerning changes to its General Tax Act.

The amendments go into effect on 1 January 2025.

Amendments to the General Tax Act

Expansion of tax audit scope and limitations for cross-border transactions

The exception allowing tax audits within six years from the start of the statute of limitations has been extended to cases involving foreign business activities or suspected criminal offenses. This includes checks on overseas operations, related entities, cross-border transactions, transfer pricing, tax arrangements, and transactions involving multiple jurisdictions. It also applies to criminal offenses like bribery, trading in influence, and related crimes.

Waiver of the statute of limitations on tax collection extended

The suspension of the statute of limitations on tax collection is extended to cases where the Croatian tax authority cannot initiate the collection process.

Streamlined tax agreements and new consent rules for electronic document delivery of tax documentation

The provision on electronic delivery of tax acts has been revised. Tax acts deciding on individual rights and obligations and other documents issued by the tax authority can now be delivered electronically to users of the tax authority’s system. By registering or logging into the system, users are considered to have consented to electronic delivery.

Extension of Shareholder liability and new ePorezna tax filing obligations

The provisions outlining the liability of company members or shareholders for failing to submit the required monthly and annual tax returns are defined.

The list of taxpayers required to file tax returns and other necessary data electronically is expanding. In addition to medium or large entrepreneurs under accounting and VAT regulations, this obligation will also apply to corporate income taxpayers, self-employed individuals, those earning rental income from properties or facilities for tourism, and crew members of ships in international navigation. These taxpayers will be formally required to submit tax returns electronically from 1 January 2025.

e-Porezna, or the e-Tax Administration, is a suite of digital services offered by the Tax Administration to serve taxpayers in Croatia.