The government has accepted amendments to four tax laws, related to a fifth round of tax reliefs. These are the laws on income tax, profit tax, Value Added Tax and fiscalization in cash transactions.
Tax changes, which should take effect from the beginning of next year, were presented by the Minister of Finance Zdravko Marić.
“There will be a decrease in the income tax rate, lowering it from 24% to 20%, or from 36% to 30%. The overall weight of changes to the income tax system is around two billion kuna. The central state will take that upon itself. As far as profit tax is concerned, the most important change is in the lower tax rate, which is currently at twelve percent for small and mid-sized businesses, and it will now be lowered to 10%. The threshold for applying the tax process according to paid bills will be increased from 7.5 million kuna to 15 million,” said Marić.
“This is a continuation of our policy of reliefs. With this new wave, we will be at more than 10 billion kuna in reliefs for citizens and entrepreneurs,” said Prime Minister Andrej Plenković.
It was pointed out at the government cabinet session that when the value of non-taxable receipts is added, the total tax relief since the beginning of the reform exceeds 11 billion kuna.
At today's government cabinet session ministers also adopted the final proposal for a Law on Foreigners, which liberalizes the labor market and abolishes employment quotas for foreigners.
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