Parliament amends set of tax laws

Zagreb - Parliament on Friday amended a set of laws by majority vote related to the fifth round of the tax reform which will enter into force on January 1 and bring HRK 2 billion in tax relief.

The amended laws on income tax, profit tax, VAT and fiscalisation in cash transactions cut the income tax rates from 24% to 20% and from 36% to 30% and the profit tax for businesses which make up to HRK 7.5 million a year from 12% to 10%.

The amended law on local government financing, in order to avert a reduction of local government revenue, increases the share for towns, municipalities and counties in income tax distribution while exempting them from their share for fiscal equalisation, which will be covered from the state budget.

Not one opposition amendment to the tax laws was adopted.

Parliament also amended the Social Welfare Act to allow for changing the organisation of work in social welfare institutions during the epidemic.

Author: Hina