Tax Refunds to be Received by 569 Thousand Citizens

The Tax Administration on Friday began the disbursement of income tax refunds for the previous year, with more than 569 thousand citizens set to receive a total of over 1.1 billion kuna in tax refunds, as reported by the Tax Administration.

According to the Tax Administration, as of June 10, a special procedure for determining the annual income tax assessment for 2019 was conducted for a total of 638,375 taxpayers-citizens, most of whom have received or are expected to receive their annual assessment decision in the coming days. By June 10, 578,206 decisions on the annual income tax assessment for 2019 from the special tax determination procedure had been dispatched.

In the special procedure, a difference of overpaid tax and surtax for refunds was determined for a total of 569,197 citizens amounting to 1.135 billion kuna, while for a total of 59,896, a difference of tax and surtax for payment was determined amounting to 107.09 million kuna, the Tax Administration stated in response to Hina’s inquiry. 

– During June 2020, the Tax Administration will deliver temporary tax decisions to taxpayers regarding the annual income earned in 2019 determined in the special procedure, and it is expected that most taxpayers will receive their decisions by June 12, 2020, when the execution of tax refunds will begin – emphasized the Tax Administration.

Namely, the Tax Administration has been applying a special procedure for determining annual income tax for the past few years, which means that most taxpayers-citizens do not have the obligation to submit an annual tax return independently, as tax officials automatically calculate it for them. 

The Tax Administration will deliver the temporary tax decision in the special procedure regarding the determined annual income earned in 2019 to taxpayers at their registered or usual residence address from the official records it holds, no later than June 30, and upon their delivery (no later than June 30) will execute the income tax refund if the taxpayers meet the conditions for the refund of overpaid income tax and surtax, the Tax Administration stated. 

Regular Procedure – 68 Thousand Taxpayers Submitted Annual Tax Return

However, some taxpayers, such as those earning income from self-employment, such as craftsmen, freelancers, and other taxpayers who determine income based on business records, as well as seafarers in international shipping, must submit their annual income tax return for the previous year (regular procedure) to the Tax Administration by the end of February. 

According to the Tax Administration, at the level of the Republic of Croatia, a total of 68,221 taxpayers submitted their annual income tax return for 2019 in the regular procedure (by submitting form DOH).

For a total of 24,278 taxpayers, a difference of overpaid tax and surtax for refunds was determined amounting to 130.7 million kuna, while for a total of 18,997, a difference for payment was determined amounting to 157.97 million kuna, the Tax Administration stated.

The dispatch of decisions on the annual income tax assessment for 2019 from the regular procedure will begin at the end of June 2020, tax officials noted. 

They also remind taxpayers who earn income from self-employment and those who determine income in the manner prescribed for self-employment that overpaid tax is refunded upon their request or is credited towards the advance for the next period.

– If it concerns individuals engaged in self-employment who were required to submit an annual tax return by February 28, 2020, they are obliged to pay income tax on the day of submitting the return or within 15 days from the date of delivery of the decision, and in the case of overpaid income tax, it is refunded upon their request or credited towards the advance for the next period –  explain the Tax Administration.