The paper „Proposal for Amendments to the Income Tax Act and the Ordinance on Income Tax Pursuant to AmCham's Proposal for Treatment of Employee Share Plans“, passed AmCham members' approval and became the official position of the American Chamber of Commerce in Croatia.

AmCham’s position paper “Employee Share Plans Taxation in Croatia” from December 2017, presented a proposal for better treatment of receipts realized from share plans, aimed at encouraging the participation of a greater number of natural persons in such plans. The paper proposed that share based receipts based on an employee’s participation in an employee share plan should be treated as gross capital income taxable with the personal income tax rate of 12% plus city surtax and exempted from social security contributions.

For the purpose of implementing the proposed changes, it is necessary to amend the Income Tax Act and the Ordinance on income tax. A specific proposal of these changes is presented in the new position paper.