The recommendations of the tax position paper include relief measures for personal income tax and corporate income tax.
The main recommendations related to personal income tax are focused on increasing the personal allowance to EUR 970, applying a maximum monthly base for calculating health insurance contributions capped at six average gross salaries, and reducing personal income tax rates from 20% to 10% and from 30% to 20%.

The recommendations also target tax relief for workers’ health, further relief on non-taxable income, setting the level of per diems in Croatia at EUR 50, and further tax relief on allotment of shares and equity interest purchases.

The main corporate income tax recommendations include the introduction of corporate income tax relief based on salary costs, proposals to improve incentives for investment in research and development, and widening the scope of the exemption from taxation of income derived from investments in subsidiaries.

In this position paper, AmCham presents recommendations for further tax relief, aimed at more strongly attracting investment and increasing the competitiveness of Croatian employers in attracting and retaining talent.

The goal of the proposed recommendations is to stimulate stronger investment and enhance the competitiveness of Croatian employers in attracting and retaining the workforce.

You can read AmCham’s position paper here.