The topics of the meeting included issues covered by AmCham’s position papers ‘Employee Share Plans Taxation in Croatia’ and ’Recommendations for Reform of the Tax System with the Emphasis on the Unburdening of Labor'. 

At the meeting AmCham representatives stressed out the importance of further unburdening of tax system for businesses and lowering the cost of labor in Croatia.

 More favorable tax treatment of employee share plans would certainly boost the use of this measure aimed to retain highly skilled employees in companies. At the moment very few companies use the measure, because the current tax treatment discourages them from doing so. AmCham believes that employee share plan treated as gross capital income taxable at the personal income tax rate of 12% would contribute to better budgetary revenues.

Ms. Perić agreed with the argumentation laid out by AmCham representatives and agreed to discuss it further with her decision making colleagues if it would be fiscally possible to make such unburdening. Furthermore, Ms. Perić welcomed the initiative to reduce the tax burden on some employee income such as allowances for workers’ health (allowance for workers’ meals, allowance for sports activities, supplementary health insurance and organization of team building activities), allowance for accommodation and food for temporarily posted workers and use of taxi services during a business trip.