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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The fiscal year begins on January 1st and ends on December 31 of the same year or any 12-months period approved by the tax authorities.
Accounting Standards
In Croatia, International Financial Reporting Standards (IFRS) are mandatory for big companies and for those that have their bonds on the stock exchange market. All the others can also report respecting the rules set by Croatian Committee for Financial Reporting Standards, a 9-members professional body appointed by the government.
Accounting Regulation Bodies
Croatian Committee for Financial Reporting Standards (in Croatian only)
Accounting Reports
These documents must contain: a balance sheet, a profit and loss account, a cash-flow report, a review of the changes of the authorized capital, comments and annexes.
Publication Requirements
The Croatian entrepreneurs are subjected to the obligation of information about their financial situation. The documents of financial information must be drafted in Croatian and expressed in the national currency (the Croatian kunas) usually once per calendar year. A business year can be different from the calendar year only if there is an exception or if the activity is a seasonal one. The account book and the ledger must be kept up to date and then kept during at least 11 years.
Professional Accountancy Bodies
Croatian Association of Accountants and Financial experts , (in Croatian only)
Certification and Auditing
The financial documents of firms with more than 30 million croatian kunas (approx. 4.3 mil. EUR) annual sales should be checked by an independent external auditor who will have the responsibility to guarantee the sincerity and the accuracy of the given information.

Deloitte, KPMG, PricewaterhouseCoopers, Ernst & Young.

The State Audit Office

Croatian Auditing Chamber (in Croatian only)

Accounting News
IAS Plus
Tax-Fin-Lex provides information on Taxes, Finances and Legislation (in Croatian only).

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Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax. In croatian : Porez na dodanu vrijednost, PDV.
Tax Rate
22%
Reduced Tax Rate
0% Hospital services and health care services, financial services, insurance transactions, cultural services,educational services, universal postal services.

5% on bread, milk, technical and educational books, medicines (approved by the national state health insurance office), surgical material for implants, scientific magazines, national film department.

13% on accommodation services, daily and periodic newspapers/magazines (if not for advertisement purposes),oils and fats for human consumption in accordance with special legislation, supply of water (with the exception of water marketed in bottles or any other packaging), white sugar produced from sugar cane or sugar beet.

Other Consumption Taxes
There are excise taxes on oil based-products, tobacco, alcohol drinks, soft drinks, coffee, personal cars and luxuries. Some Local Authorities also impose taxes (3% on the selling price of drinks in catering activities, taxes on the advertisement).

Learn more about Service Providers in Croatia on Globaltrade.net, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
20%
Capital Gains Taxation
Capital gains are included in taxable income and subject to tax at the normal corporate income tax rate.
Main Allowable Deductions and Tax Credits
Deduction for depreciation and depletion, bad debts (under conditions), certain research and development expenses, and certain training and education expenses up to a limit.
Other Corporate Taxes
Real estate transfer tax, social security contributions, inheritance and gift tax, forest contributions, tourism contributions, cultural monument contributions.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Croatia Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 18.0 28.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 196.0 260.0 175.0 207.0
Total Share of Taxes (% of Profit) 32.8 40.5 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Personal income tax Progressive rates from 12% to 40%
HRK 0 - 26,400 12%
HRK 26,400 - 105,600 25%
Above HRK 105,600 40%
Allowable Deductions and Tax Credits
For family with children, for individuals living in certain recognized undeveloped areas, for self-employment, for research costs of self-employed persons.
Special Expatriate Tax Regime
There is no special tax regime for expatriates.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the double Taxation Agreements signed.
Withholding Taxes
Dividends: 12%, Interest: 15/20%, Royalties: 15/20%

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Sources of Fiscal Information

Tax Authorities
Croatian Tax Administration Office
Other Domestic Resources
The Croatian Tax System

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Learn more about Taxes and Accounting in Croatia on Globaltrade.net, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The body responsible for industrial property is the State Office for Intellectual Property.
Croatia signed the Agreement of Paris concerning the protection of industrial property and the agreement which establishes the World Intellectual property Organization (WIPO). They are a part of the Agreement of Madrid, on the international register of the trademarks.
International Membership
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
Patent Law 2007
20 years, may be renewable in some cases
Trademark
 
Trademark law 2007
10 years (renewable for indefinite number of times) Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design
 
Design Law
5 years (renewable, for a maximum of total 25 years)  
Copyright
 
Copyright law
70 years after author's death WIPO Copyright Treaty

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Legal Framework

Independence of Justice

The judicial system suffers from numerous problems, most notably inefficiency. Judicial personnel shortages have led to a huge backlog of cases, though it decreased in the last years. Excessive trial length and a lack of enforcement of judicial decisions, especially in cases related to the repossession of property owned by Serbs, plague the system. Despite some improvements, a lack of impartiality among the local courts remains a problem.

Equal Treatment of Nationals and Foreigners
Yes, the law prohibits discrimination based on gender, age, race, disability, language, or social status. However, some cases of discrimination against women, ethnic Serbs, and Roma are still reported.
The Language of Justice
Official language also in justice is Croatian. The exception are officially recognized ethnical minorities: Serbs, Bosnians, Italians, Hungarians, Albanians, Slovenes and Rumanians. They have right to use their language in the local courts where their minority rights are officially recognized.
Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1990 (revised in 2001) which is based on civil law system. However, the Croatian legislation has been widely harmonizing with the EU legislation.
Checking National Laws Online
Official Gazette of Croatia publishing all legislation (in Croatian only).
A database on national laws

Learn more about Lawyers and Legal in Croatia on Globaltrade.net, the Directory for International Trade Service Providers.

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Standards

National Standards Organizations
Croatian Standards Institute
State Office for Metrology
Integration in the International Standards Network
Croatian Accreditation Agency is a full-member of European Co-operation for Accreditation (EA) and associate member of International Laboratory Accreditation Cooperation (ILAC). The rules of accreditation are in line with European standards 45000 and international standards 17000 according to the rules and guidelines of EA, ILAC and IAF.

 

Croatian Standards Institute is a member of: International Organisation for Standardization (ISO), International Electrotechnical Commission (IEC), European Committee for Standardization (CEN), European Committee for Electrotechnical Standardization (CENELEC), European Telecommunications Standards Institute (ETSI).

Classification of Standards
Accreditation is done according to the international (ISO) and European (EN) standards that are recognized as Croatian (HRN) ones.
Online Consultation of Standards
Catalogue of Croatian Standards
Certification Organizations
Croatian Accreditation Agency
State Office for Metrology

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Business Practices

General Information
Brochure by Communicaid, general basic remarks on Croatian business culture and habits.
Kwintessential , Brief overview on Business customs and etiquette in Croatia.
Opening Hours and Days
Banks open from Monday to Friday usually from 8.00 AM to 7.00 PM, on Saturday from 8.00 AM to 12.00 AM
Public administrations are opened Monday to Friday from 9.00 AM to 5.00 PM
Shops are opened Monday to Friday from 8.00 AM to 8.00 PM and on Saturday from 8.00 AM to 3.00 PM
 

Public Holidays

New Year 1st January
Epiphany 6th January
Easter Monday Movable feast
International Labor Day 1st May
Corpus Christi Movable
Anti-fascist Resistance Day 22nd June
Statehood Day 25th June
Victory and Homeland Thanksgiving Day 5th August
Assumption Day 15th August
Independence Day 8th October
All Saints' Day 1st November
Christmas 25th and 26th December
 
 

Periods When Companies Usually Close

New Year 1 week between Christmas and New Year
 

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Last Updates: February 2015