TAXATION SYSTEM

Croatia has conducted a taxation reform on the basis of the systems used in Western European countries with developed market economies. The taxation system gives equal status to all taxpayers, i.e. domestic and foreign natural persons and legal entities. Croatia honours all double taxation agreements made between the former Yugoslavia and other countries, and has already signed new international agreements on avoiding double taxation with numerous other countries.

The current tax system includes the following taxes:

1. profit tax,

2. income tax,

3. value-added tax

4. special tax (excise duty) on certain products (oil and petroleum products, tobacco products, alcoholic beverages, non-alcoholic beverages, beer, coffee, motor cars and other motor vehicles, floating vessels and aircraft, luxury products),

5. real estate sales tax,

6. games of chance tax,

7. certain forms of tax levied by local authorities.