AmCham has welcomed tax unburdening to date, presented through four rounds of tax reform as well as the announced measures of additional tax unburdening, such as the reduction of profit tax, further lowering of income tax rates and raising the amount for calculating VAT on fees charged. Nevertheless, AmCham believes that further tax unburdening is necessary.

AmCham Trade and Investment Committee has published a new position paper „Recommendations for Tax Reform in 2020“ that were presented at the meeting. The position paper proposes a number of measures aimed at improving the functioning of the tax system, including measures of reducing the tax burden on labor contributions (income tax) and reducing the tax burden on some employee income. All recommendations are aimed at achieving a more competitive tax system and consequently, more competitive Croatian economy.

Besides already proposed recommendations, the position paper contains new measures regarding necessary changes to the tax treatment of “remuneration in kind“, taxing income from bonuses in the form of allotment of shares and equity option contracts (that is including limited liability companies in the implementation of options plans and net vs gross remuneration with regard to option plans). 

AmCham's „Recommendations for Tax Reform in 2020“ are available here.