In accordance with Article 14 paragraph 3 of Profit Tax Act, the Minister of Finance has declared that the arm’s length interest rate on loans between related parties is 3.96% per annum, effective 1 January 2019. Stated interest rate decreased from previous year when it was 4,55%.
Starting from October 2018, Mazars is presenting you the most intereseting tax news on monthly basis!
Our Tax Newsletter will cover key local tax changes, but also the ones concerning European Union, primarily judgments of European Court of Justice and the BEPS project (Base Erosion and Profit Shifting). These tax updates will also be followed by comments of Mazars' experts.
If there are other topics about which you would like to find out more, let us know!
Croatian Ministry of Finance has introduced a proposed set of Act changes in tax system of Republic of Croatia to a public during August.
Through proposed changes most of taxes in Croatia will be covered, with biggest changes in system of CIT, VAT and PIT.
In one of the recently published opinions of the Tax Administration, the taxpayer filed a request for an opinion, referring to the opinion of the Tax Administration in 2013, in which the Tax Administration denied the possibility of issuing bilingual outgoing invoices. The taxpayer pointed out that it is unacceptable that, in addition to the Croatian language, the invoice can not be issued in another language, as agreed with the buyer.
After the previous adoption of the new set of Acts related to tax reform, which we have previously wrote about in Newsletter - amendments to the Acts, new set of Rulebooks intended to describe these Acts in detail are published in the Official Gazette no. 1/17.
The reform in question covers most of the taxes in Croatia, and the most significant changes have been conducted in the personal income tax system.
New Rulebooks were published on January 3rd, 2017. Below is an overview of the most important provisions of the new regulations and amendments to the existing regulations.
As previously mentioned by the Minister of Finance, on October 27th 2016, the Croatian Ministry of Finance introduced to the public a proposed set of legislative changes in the tax system of Croatia.
The above mentioned reform covers majority of taxes in Croatia, and the most significant changes are expected in the system of value added tax, corporate income tax and personal income tax.
In mid-November, the proposed changes are going into the parliamentary procedure for two readings, while the final legislative proposals are expected by the end of this month.
The focus of the company and the tax authorities, which operate and act in more developed countries (such as the G20 or the European Union) has for many years focused on the area of transfer pricing.
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.
May 24, 2016, Budapest – The Hungarian office of MAZARS today publishes its fourth annual regional tax summary, covering the current tax regimes of the countries of Central and Eastern Europe (CEE). The aim of the leading audit and tax consultancy firm is to provide investors interested in the region with focused information about tax in the CEE countries, and also to enable them to compare various competitiveness factors. The 2016 edition presents a snapshot of the tax environments of the Visegrad countries, Greece, Russia, Ukraine, the successor states of the former Yugoslavia, as well as the three Baltic states and Albania.
In the last few months we have witnessed a remarkable increase in legislation related to transfer pricing and international taxation.
Although it sometimes seems that the country for no reason just to introduce additional administrative burdens to entrepreneurs, such actions generally occur as a result of significant tax evasion undertaken by international corporations.
At the official website of the EU on 7 April 2016 the European Commission adopted an Action Plan on the future of the VAT system in the EU member states.
The main objective of the reforms that the European Commission proposes in the current VAT system is to prevent tax fraud because of which there is significantly less of collected tax revenues - VAT gap.
This Alert highlights the latest Global Mobility developments and hot issues in Croatia and Canada, some EU Immigration issues which might be of interest when planning your strategies and the major changes in the Romanian personal income tax legislation.
Within this article we emphasize conditions and legislation in case of expatriation in Croatia, as well as for situations when foreign companies without legal presence in Croatia employ Croatian citizens
In our previous newsletters, we wrote about how the Tax Administration is constantly working to enhance and improve internal processes, as well as about their increased intention to cooperate with tax administrations of other countries.
Due to mentioned actions, we have been approached for help by several individuals lately. Namely, the Tax Administration contacted them to report their incomes from abroad, realized in recent years.
Na stranicama porezne uprave objavljen je prijedlog izmijena pravilnika o porezu na dobit, a najvažnija predložena izmjena je novi obrazac PD-IPO prema kojemu je porezni obveznik dužan popuniti podatke o transakcijama s povezanim osobama.
Dodatno su pojašnjenje određene odredbe vezane za poticaje ulaganja i reinvestiranje, a više o svemu u nastavku.
Na stranicama porezne uprave objavljeni su prijedlozi izmjena pravilnika o porezu na dodanu vrijednost.
Više o najznačajnijim izmjenama pročitajte u nastavku.
May 6, 2015, MAZARS published its third annual regional tax survey, covering the current tax regimes of the countries of Central and Eastern Europe (CEE).
The General Tax Law has been amended. More on the amendments to the General Tax Law can be read in the Mazars Cinotti Company's newsletter below.
Izmjenjen je Opći porezni zakon. Više o izmjenama Općeg poreznog zakona pročitajte u newsletteru Mazars Cinotti društva u nastavku.
On 21 January, Mazars’ Global Tax Policy Team has attended to the public consultation meeting, held by the Organisation for Economic Co-operation and Development (OECD) in Paris, representing Mazars’ comments on the Discussion Draft on Action 7 of the Base Erosion and Profit Shifting (BEPS) Action Plan. Mazars’ International Tax Policy Team welcomes the progress that the OECD has made to date and was very pleased to provide our input on the Discussion Draft.
Welcome to the Mazars Global Mobility Services guide to expatriate taxation in Central Eastern Europe (CEE).
In line with tax reform applicable as at 1 January 2015, Ministry of Finance has published implementing regulations in form of amendments of VAT, Personal Income Tax and Corporate Income Tax Rulebook. The most interesting changes are summarized in the documents below.
As the year end is approaching, so does the employer's obligation to compile the final annual tax and surtax calculation. The annual calculation is based on all salaries that are (shall be) paid out in 2014, and should be performed together with last payroll (payout) in December.
Given the fact that the values of the budget deficit and public debt given by the thresholds of 3% of deficit to GDP and 60% of debt to GDP exceed the limits determined by the European Commission, the Government adopted a National program of reforms in April 2014.
Porezna uprava uvodi sve više instrumenata kojima kontrolira ubiranje najizdašnijeg prihoda – prihoda od poreza na dodanu vrijednost.
Recent research by the Mazars Group showed a change of certain tax trends in the territory of Central and Eastern Europe (CEE region).