The government, in its final proposal for amendments to the income tax law, suggests that salaries no longer have to be mandatorily paid into a current account.
State Secretary in the Ministry of Finance Zdravko Zrinušić reminded at the government session that according to current regulations, salaries can be paid into a current account, while all other income must be paid into a giro account.
Since the tax administration system is now interconnected in such a way that this is neither necessary nor required, and also due to the relief of citizens and entrepreneurs who now have to maintain two or more accounts, it is proposed that this obligation be abolished, meaning that payments can be made to any account that the citizen wishes, said Zrinušić.
Administrative relief will encompass all taxpayers, both recipients and payers of income, he added.
The government has already proposed in the first reading, among other things, an increase in the amount of income that a person can earn and still be considered a dependent member. This amount would be increased to the level of six times the prescribed basic personal deduction, or annually 24,000 kuna. Accordingly, the amount of income for students working through student associations, which is not subject to income tax, would be adjusted from 15,000 to 24,000 kuna.
The proposed amendments primarily aim to encourage young people who are trying to gain work experience during their studies to engage more in the labor market, especially during the summer in tourism, the government says.
Additionally, income up to 10,000 kuna earned from the sale of surplus electricity produced by citizens from solar panels on their homes, which they send to the grid as surplus that they do not need, would also not be taxable.
