Croatia Approves Changes to Individual Income Tax Deduction, Top Tax Rate Threshold and Other Measures

The Croatian parliament has approved the planned changes to the country's Individual Income Tax Law. The key changes are as follows:

• The standard monthly deduction allowance will be increased from HRK 2,200 to HRK 2,600
• The monthly taxable income threshold for the top individual income tax rate (40%) will be increased from HRK 8,800 per month (HRK 105,600 annual) to HRK 13,200 per month (HRK 158,400 annual)
• The individual capital gains tax on financial instruments will be set at 12% from 1 J…