AmCham Conference 'Sustainable Tax System: Policy, Practice and Perspectives'

AmCham organized its fifth edition of the conference "Sustainable Tax System: Policy, Practice, and Perspectives", where experts from the public and private sectors discussed the future of Croatia’s tax system. The conference focused on further relieving the tax burden on labor, simplifying administrative procedures, digitalization, and encouraging investment in research and development.

On this occasion, AmCham presented its position paper “Recommendations for Tax Reform in 2025”, aimed at further improving tax policy. The key recommendations include:

Personal Income Tax: increasing the personal allowance to EUR 970, reducing tax rates from 20% to 10% and from 30% to 20%, and capping the base for health insurance contributions.

Corporate Income Tax: introducing relief based on salary expenses, enhancing incentives for R&D investments, and expanding tax exemptions on income from investments in subsidiary companies.

Speaking at the opening of the conference, Andrea Doko Jelušić, AmCham's Executive Director, emphasized the importance of continued reforms to maintain competitiveness and attract qualified labor, while preserving fiscal stability.

Deputy Prime Minister and Minister of Finance Marko Primorac highlighted the importance of a sustainable tax system that balances fiscal needs with social equity. He especially underlined the significance of the “Fiscalization 2.0” project, which is expected to result in annual savings of over EUR 120 million for businesses through reduced administrative burdens.

Vladimir Nol, Partner at Forvis Mazars, presented a comparative analysis of personal income tax, noting that while Croatia’s nominal tax rates are high, the actual tax wedge is not unfavorable compared to other countries in the region. He stressed the importance of further reducing levies and introducing tax reliefs for healthcare expenses.

Krešimir Lipovšćak, Partner from Crowe Croatia spoke about improving investment incentives, particularly those focused on research and development, as a key tool for strengthening economic competitiveness and attracting foreign investment.

The conference concluded with a panel discussion titled "Tax Strategy for a More Competitive Economy". The participants were Božidar Kutleša, Director of the Tax Administration; Tomislav Mesić, Member of the Management Board and CFO at LEDO plus; and Ralph Rogobete, Government Affairs and Policy Manager for Romania and Croatia at Mastercard. All panel discussion participants agreed that tax policy plays a crucial role in creating a stable and predictable environment for economic growth.