New Rules on Transfer Pricing at EU Level

It is estimated that countries in the EU each year lose 50-70 billion because multinational companies (MNEs) tax evaders. Recent reports published are low amounts of taxes paid by certain MNP's, which calls into question the overall effectiveness and fairness of tax systems in the EU.

Furthermore, the European Union has decided to respond to this challenge by introducing so-called compulsory. Country-by-Country Reporting (CBCR). CBCR is reporting on the activities of the tax paid by countries whose aim is to achieve greater public transparency regarding the income tax.

From the point of Croatian payers, all companies within the country which are subsidiaries of large multinational groups will be included in CBCR-in to draw up a parent for their societies. Therefore, such information will be available to everyone, and also will have to be submitted to the Croatian Tax Administration, in accordance with the various directives on data exchange and adopted by the Croatian.

More on this topic you can read in Newsletter on Croatian bellow.