ZAGREB, June 13 (Hina) - The Croatian National Sabor's House of Counties on Tuesday supported in the first reading a bill on investment stimulation, which suggests the possibility of significant benefits in the payment of profit tax.
According to the bill, investors who would invest at least 20 million kuna and employ 30 persons in Croatia would pay income tax according to a rate of seven percent, whereas the general profit tax rate is 35 percent, Deputy Economy Minister Neven Mimica said. This benefit would be in force for ten years for investments into new companies, some tourist facilities, and existing companies. "We believe this bill creates conditions for the Croatian market to finally become attractive to foreign as well as domestic capital," Mimica said. Over the past ten years Croatia was isolated from the possibility of a greater influx of foreign capital, which was invested into count
ZAGREB, June 13 (Hina) - The Croatian National Sabor's House of
Counties on Tuesday supported in the first reading a bill on
investment stimulation, which suggests the possibility of
significant benefits in the payment of profit tax.
According to the bill, investors who would invest at least 20
million kuna and employ 30 persons in Croatia would pay income tax
according to a rate of seven percent, whereas the general profit tax
rate is 35 percent, Deputy Economy Minister Neven Mimica said.
This benefit would be in force for ten years for investments into
new companies, some tourist facilities, and existing companies.
"We believe this bill creates conditions for the Croatian market to
finally become attractive to foreign as well as domestic capital,"
Mimica said.
Over the past ten years Croatia was isolated from the possibility of
a greater influx of foreign capital, which was invested into
countries in transition with a higher level of stability.
According to direct foreign investments (per capita), investments
in Croatia are four to five times less than in Hungary, two times
less than in the Czech Republic and one and a half times less than in
Poland, Mimica said.
The bill envisages additional funds for every investor for the
opening of new jobs and the establishment of a special real estate
fund.
It also suggests the introduction of customs benefits for the
import of production equipment.
Since this year's budget does not include funds for the
implementation of the bill, its application can be expected next
year at the earliest.
The Agency for Stimulating Foreign Investments in the past four
years spent 20 million kuna and not one dollar or German mark
arrived in Croatia through its mediation, said Stjepan Maric of the
Croatian Peasants' Party (HSS), adding a similar agency in the
Czech Republic last year secured investments amounting to 2.8
million dollars.
(hina) jn rml