Tax Administration Issues Calls to Taxpayers Who May Realize Certain Rights

The Tax Administration announced on Friday that it has issued calls to taxpayers identified as eligible for certain rights under the special procedure for determining the annual income tax for 2015, as well as to those who must fulfill certain tax obligations.

Namely, the Tax Administration will apply a special procedure for determining the annual income tax for 2015 for the first time this year, based on amendments to the Income Tax Act.

Accordingly, by June 30, the Tax Administration will deliver a temporary tax decision on the determination of the annual income tax and the difference for payment or refund of tax to taxpayers covered by the special procedure, based on the records and data it possesses. Taxpayers may file an objection to the delivered decision if they believe that the data in the decision is incorrect or incomplete, no later than July 31.

Citizens covered by the special procedure can expect a refund of overpaid income tax based on the annual calculation in the first half of August, the Tax Administration announced.

They emphasize that a prerequisite for the implementation of the special procedure is that the Tax Administration has all the necessary data to determine the total annual income and the amount of tax reliefs based on which the taxpayer can realize the right to reduce the annual income tax obligation.

“For the majority of taxpayers, the Tax Administration has all the necessary data for determining the annual income tax obligation, and in these cases, the special procedure will be conducted comprehensively and timely,” states the announcement published by the Tax Administration on its website.

It is also noted that the principle of the Tax Administration’s work is to invite taxpayers to voluntarily fulfill their obligations through educational activities, but also to inform them about the possibility of realizing certain rights.

Therefore, the Tax Administration has issued calls to taxpayers identified as eligible for certain rights under the special procedure, as well as to those who must fulfill certain tax obligations.

Recently, calls have been sent to those taxpayers for whom tax officials, based on annual calculations from previous years, have determined that they utilize certain tax reliefs in their annual calculations. The aim of these calls is for citizens who wish to use such tax relief for 2015 to report this fact to the Tax Administration by February 29, 2016.

By timely reporting such facts, which the Tax Administration does not have in its records, the implementation of the special procedure within legal deadlines is enabled, which means timely refunds for taxpayers based on the annual income tax calculation. These calls to taxpayers are aimed at informing identified taxpayers about the rights they can realize, explains the Tax Administration.

Calls have also been sent to taxpayers who must fulfill certain tax obligations.

It is explained that taxpayers, Croatian residents who earn taxable or non-taxable income outside Croatia, have certain tax obligations based on that income that they must fulfill by coming to the Tax Administration.

“In certain cases, this involves the obligation to pay income tax, and sometimes it concerns the regulation of taxpayer status (for example, reporting the amount of a scholarship received outside the Republic of Croatia, as the recognition of dependent status depends on this income, which is also verified when obtaining a scholarship in the Republic of Croatia). In this regard, we particularly emphasize that tax regulations applicable in the Republic of Croatia stipulate that no one pays tax on the same basis twice (in the domestic and foreign markets),” tax officials explain.

They also add that the exchange of data conducted under the relevant EU directives allows the Tax Administration to gain certain insights into the income of its residents, and based on the information received, tax authorities carry out procedures based on national legislation.

The Tax Administration emphasizes that “all identified taxpayers who have not regulated their tax status regarding such income have been invited to do so within the given timeframe.”

In the process of fulfilling their obligations or seeking rights, taxpayers are required to provide minimal documentation that unequivocally proves the facts they state, and the nature of this documentation depends on each individual case.

The Tax Administration also emphasizes that all taxpayers must fulfill the same obligations and realize the same rights, regardless of whether they earn income in the Republic of Croatia or abroad.

“The delivery of calls to fulfill tax obligations is a continuous practice in the work of the Tax Administration, and all taxpayers can obtain additional information at the relevant branches of the Tax Administration according to their place of residence,” concludes the announcement.