Croatia Clarifies Employment Level Conditions for the Tax incentive for Reinvested Profits

Croatia's Tax Administration has published guidance that clarifies the application of tax relief (exemption) for reinvested profits from 2015. The exemption for reinvested profits was introduced in 2012, with the conditions expanded with effect from 2015, including that:

• The profits must be reinvested in long-term assets used in business activities to preserve existing jobs; and
• The total number of employees as established at the beginning of the period in which the incentive is claimed must…