ZAGREB, Oct 22 (Hina) - Although a cut from 35-percent-rate to 25-percent in the profit tax will take effect as of next year, all who have already employed new workers or are going to employ them and obtain new equipment by the end of
this year, will be allowed to use the advantage paying the lower profit tax. A lessened tax base refers to entrepreneurs' donations and different gifts, which will be accepted as a tax benefit if the amount of such donations is up to two percent of the gross earnings in the previous business year. A new draft profit tax act, which the Croatian Government has sent into a regular parliamentary procedure, also stipulates tax benefits, advantages and exemption. In case of the employment of workers in the indefinite time, the tax base of employers will be lessened by the (worker's) salary and contributions in one year. If the employer gives a jo
ZAGREB, Oct 22 (Hina) - Although a cut from 35-percent-rate to 25-
percent in the profit tax will take effect as of next year, all who
have already employed new workers or are going to employ them and
obtain new equipment by the end of this year, will be allowed to use
the advantage paying the lower profit tax.
A lessened tax base refers to entrepreneurs' donations and
different gifts, which will be accepted as a tax benefit if the
amount of such donations is up to two percent of the gross earnings
in the previous business year.
A new draft profit tax act, which the Croatian Government has sent
into a regular parliamentary procedure, also stipulates tax
benefits, advantages and exemption.
In case of the employment of workers in the indefinite time, the tax
base of employers will be lessened by the (worker's) salary and
contributions in one year. If the employer gives a job to disabled
persons, these advantages will cover there years.
A tax base will be reduced by the value of the purchased equipment or
of donations in cash or in goods in the amount up to two percent of
the entire realised income in the previous year. Those items of
expenditure will be recognised as costs in 2000, while the reduced
tax rate and other provisions of the act will become effective as of
1 January 2001.
One's own capital will have the protection tax of 3.5 percent
annually, which will be applied for the transferred tax loss.
In order to have a comprehensible tax system, this draft act
incorporates the text about advantages, stimulation and tax
exemption from the existent laws for tax payers in the areas of the
special state concern, tax payers who do jobs in free trade zones
and for entrepreneurs in the war-hit areas of Vukovar.
The draft act on profit tax is one of six acts included in a package
of tax laws, which the Sabor is to discuss at the Government's
proposal.
(hina) ms