Croatia entered 2021 with a new set of tax
reforms of which the most important determinants are reduction of
income tax rate and the corporate income tax rate for
entrepreneurs. Personal income tax amendments certainly brought the
most discourse between employees as it contributed to changes in
their salaries. Most of these changes took effect in the beginning
of the year, while some effects of the reform might be visible in
the middle or end of the year. The following is a summary of the
changes brought about by this round of tax reform, more precisely
changes in personal income tax.
One of the tax reforms that seemed the most interesting to the
citizens is the amendment of the personal income tax rate given
that the outcome would be higher salaries and pensions. These
changes reduced the tax rates from 24% to 20%, and from 36% to 30%.
There are no changes when it comes to tax bases which means that
the rate of 20% is applicable to tax base of up to HRK
