The proposed amendments to the Income Tax Act, accepted at today’s Government session, also address ambiguities related to the taxation of dividends, specifically providing for their taxation at the time of payment.
The Government, as stated by Linić, maintains the position that in a crisis situation, when citizens are paying increased VAT, and the state has waived part of the reinvested profit tax, a tax of 12 percent should be levied on the paid dividend.
For retirees whose pensions are paid by other EU member states, a simplified procedure is proposed, whereby the Tax Administration will exchange information with related institutions in EU member countries without the need for retirees to collect the necessary documents themselves in those countries.
Due to Croatia’s accession to the EU, these legal amendments also address the issue of income for non-residents, i.e., citizens of other EU member states, as well as Croatian citizens employed in EU institutions. All of them, the Minister of Finance explained, are equated in rights and obligations with other citizens of Croatia, thus allowing them the same tax deductions.
The Government also adopted a regulation on amendments to the law on residence fees, as well as a regulation on the conditions for the arrival and stay of foreign yachts and boats, which, among other things, equalizes the rights and obligations of citizens of other EU member states with those of Croatian citizens, thus eliminating discrimination against other EU citizens who have previously paid higher fees.
Additionally, according to the Minister of Maritime Affairs, Transport and Infrastructure Siniša Hajdaš Dončić, the vignettes that vessels were required to have are being abolished. At the same time, the criteria for collecting navigation fees are changing, so that the length of the vessel will no longer be decisive, but rather the power of the engine. Until now, the state has generated about 27 million kuna in annual revenue from these fees, and this amount is expected to increase, says Hajdaš Dončić.
