Croatian Parliament Considering Reduction in Individual Income Tax and Corporate Tax for SMEs

The Croatian parliament has issued a release announcing the submission of tax reform bills providing changes in individual income tax, corporate (profit) tax, and VAT. The main measures include:

• A reduction in the two-bracket individual income tax rates from 36% and 24% to 30% and 20%;
• A reduction in the corporate tax rate for SMEs from 12% to 10%, which applies for SMEs with annual revenue of up to HRK 7.5 million; and
• The repeal of the VAT exemption for low value imported goods (EUR 22) f…