ZAGREB, Oct 31 (Hina) - The Croatian government on Thursday adopted a package of tax laws envisaging a series of deductions in health care and the solution or improvement of one's housing status, and the introduction of declarations
of assets. These laws should go into force next year.
ZAGREB, Oct 31 (Hina) - The Croatian government on Thursday adopted
a package of tax laws envisaging a series of deductions in health
care and the solution or improvement of one's housing status, and
the introduction of declarations of assets. These laws should go
into force next year. #L#
Amendments to the Income Tax Law should increase the net wage in
relation to the unchanged gross wage by 1-6 percent, Finance
Minister Mato Crkvenac said.
These amendments should also increase the automatic wage deduction
amount from 1,250 to 1,500 kuna on a monthly or from 15,000 to 18,000
kuna on an annual basis.
Higher automatic wage deduction amounts, up to 3,750 kuna per
month, will be retained in formerly war-struck areas.
Crkvenac announced a series of tax deductions which citizens might
enjoy as of 2003. Citizens would report them in their tax returns
for that year, which will be submitted in 2004.
Citizens could enjoy tax relief on the purchase of medicines,
orthopaedic aides and surgeries, where there is no amount limit.
Tax deductions are also envisaged for the purchase or building of a
flat or a house and for the renovation of flats. Citizens opting for
any of the above may use a maximum annual deduction of 12,000 kuna on
expenditure for any above purpose or on housing loans interest.
There is no income census for this tax relief, said the minister.
Another new aspect is that a five-percent property tax will no
longer have to be paid for the purchase of one's first flat.
Tenants will also be entitled to deductions, namely to 50 percent of
an arbitrarily determined rent, a maximum of 12,000 kuna annually,
said Crkvenac. It has also been proposed that the tax rate on
property leasing should be 7.5-10 percent.
According to available data, about 200,000 flats are leased, but
only 40,000 are registered as such.
Another new aspect of the tax package is the introduction of
declarations of assets. Assets would be registered starting with 1
January 2003. Annual changes exceeding 75,000 kuna have to be
reported.
The proposed changes also expand the circle of persons obliged to
pay income tax to include farmers who receive state incentives.
Also today, the government forwarded a bill on compulsory insurance
into second parliamentary reading.
The bill stipulates that contributions for pension insurance will
be charged to the beneficiary, while those for health insurance and
employment will be charged to the employer. The proposed
contribution rate for pension insurance is 20 and that for health
insurance 15.5 percent.
The government also formulated bills of amendments to laws on
general tax, health and pension insurance.
(hina) ha sb