On 29 November 2019, the Croatian Parliament approved the Tax Reform. On 23 November 2019, the fourth tax reform round sent to Parliament for second reading. It will come into force from 1st January 2020.
As for income tax, the non-taxable income has been raised from 3,800 to 4,000 kuna.
Income tax for young people under 25 is reduced by 100% while income tax for young people aged 25-30 is cut by 50%.
The tax reform also keeps the 25% standard VAT rate; a 13% VAT rate on food and dessert preparation and serving in and outside catering establishments, and a lower VAT rate for holders of phonographic rights.
