Taxes in

Croatia , image_flag = Flag of Croatia.svg , image_coat = Coat of arms of Croatia.svg , anthem = "Lijepa naša domovino"("Our Beautiful Homeland") , image_map = , map_caption = , capit ...

are levied by both the central and the regional governments. Tax revenue in Croatia stood at 37.8% of GDP in 2017. The most important revenue sources are

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

es,

social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...

contributions,

corporate tax A corporate tax, also called corporation tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at ...

and the

value added tax A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end ...

, which are all applied on the national level. Income earned in Croatia is subject to a progressive income tax, of two different brackets. In addition to tax, local government can collect surtax depending on the residence of taxpayer. VAT in Croatia is levied at three different rates. The standard rate is 25 percent, two reduced rates are 13 and 5 percent apply on different goods and services. The 13% rate apply for newspapers, magazines, bread and milk; books and scientific journals, hotels and medicines. Employment Income is subject to social security, at a rate of 16.5% for the employer and 20% for the employee. Salary calculator: https://www.moj-posao.net/Salary-Calculator/ Corporate tax depends on the revenue the company earns. Certain expenses are tax deductible for businesses including personal means of transportation. Resident businesses are taxed on worldwide income, while foreign companies in Croatia are taxed on profits earned in Croatia.

References

Further reading