According to the definition, tax is a charge against income or property of legal and natural persons collected by a state to support its needs without direct counter-performance. A tax system includes all types of taxes, contributions and fees, whereas a tax policy is composed of measures and regulations necessary for tax apportionment and tax collection.

The tax system of the Republic of Croatia used to include:
· direct – all forms of taxation of legal and natural persons and
· indirect taxes – sales tax on goods and services.

The tax reform conducted in 1993/94 abolished the schedular and introduced a general income tax (from employment, independent services and assets) with rates depending on taxpayer's salary, rights to personal tax deduction and a possibility for a taxpayer performing a registered activity to choose between income tax or profit tax.
Profit tax is paid by entrepreneurs (natural and legal persons) performing a registered activity. The Croatian tax system also includes value added tax and expenditure taxes or special taxes on oil derivates turnover, tobacco products, non-alcoholic beverages, alcoholic beverages and import of cars and coffee.
Local authorities are entitled to impose their own taxes such as: counties – taxes on inheritance and gifts, road motor vehicles, vessels, organization of amusement and sport events; municipalities and towns – taxes on consumption, vacation homes, trade name and use of public land.
Towns may also introduce income surtax.


1.1. Value added tax
1.2.1 Special tax on passenger cars, other vehicles, vessels and aircraft
1.2.2 Special tax on oil derivates
1.2.3 Special tax on alcoholic beverages
1.2.4 Special tax on beer
1.2.5 Special tax on non-alcoholic beverages
1.2.6 Special tax on tobacco and tobacco products
1.2.7 Special tax on coffee
1.2.8 Special tax on luxury products
1.2.9 Special tax on motor vehicle liability insurance premiums

2.1 Tax on inheritance and gifts
2.2 Tax on road motor vehicles
2.3 Tax on vessels
2.4 Tax on gaming machines

3.1 Tax on consumption
3.2 Tax on vacation homes
3.3 Tax on trade name
3.4 Tax on the use of public land
3.5 Tax on uncultivated cultivable agricultural land
3.6 Tax on unused entrepreneurial real estates
3.7 Tax on undeveloped construction land
3.8 Surtax on income tax

4.1 Profit tax
4.2 Income tax
4.3 Real estate transfer tax


1. Tax consulting services
When providing tax consulting services, we tend to view our clients' business operations and needs as a whole from the point of view of existing and potential risks and a possibility to optimize their tax position. An adequate and timely recognition of tax risks and tax position optimization can significantly contribute to the quality of overall business operations.

2. Support to foreign natural persons working in the Republic of Croatia
During the last decades there has been a significant extension of economic relations between individual states (especially those that are members of certain integrations) showing a powerful influence on the increasingly dynamic movement of capital, goods and people between states. During the last few years a number of foreign natural persons sent by their foreign employers to live and work in Croatia have been increasing. Such deals stimulate numerous tax issues requesting a good knowledge of local and foreign tax regulations and international agreements. Apart from tax issues, one should also take into consideration issues relating to social insurance and necessary permits (residence permit, working permit etc.). Our tax experts are experienced in providing consulting services to natural persons from other states; they always keep up with changes to those regulations regarding foreigners working in Croatia and have a good knowledge of tax authority procedures, when it comes to tax treatment of foreigners. >

Our support to foreign natural persons working in the Republic of Croatia includes:
1. general information on payment of taxes and contributions as well as obtaining necessary permits to work and live in Croatia,
2. initial identification of the personal status of a foreign person coming to work in Croatia,
3. providing information on those liabilities arising from the identified status of a foreign person (payment of taxes and contributions, obtaining particular permits, registrations to particular competent bodies and similar),
4. support relating to tax planning and optimization of the personal tax status with the aim of reducing the overall tax and contribution burdens,
5. constant monitoring and help during the entire stay in the Republic of Croatia related to calculation and payment of income tax advances,
6. support in communication with tax authorities,
7. other types of help and support provided to our clients related to tax issues.

Services provided to our clients (legal and natural persons) also include an extensive support in preparations of tax returns.

3. Tax review
Tax review may involve a particular tax, significant ("major") taxes or all taxes. Generally speaking, the aim of a tax review is to determine and minimize tax risks as much as possible and to determine optimization possibilities of a client's existing tax position. The scope of performed procedures depends on needs and arrangements made with a client. Therefore, it can vary from procedures based on interviews and/or analytic procedures, analysis of the existence and internal audit functioning related to taxes, to a detailed analysis of tax book-keeping and accuracy of the performed calculations.

4. Tax planning
Taxpayers very often neglect the importance of tax planning, even though an adequate tax planning can significantly contribute to the profitability of overall business operations. Tax planning can be performed only based on an adequate level of expertise in the tax field that enables one to determine different possibilities of tax position optimization and to evaluate their predictability and profitability. Our support in tax planning is always based on needs and particularities of a client's business operations, taking into consideration the existing tax regulations, knowledge about possible changes of these regulations and procedures related to tax authorities.

5. Internal control analysis related to taxes
Our experience has showed that very often tax risks are not sufficiently or are not at all included and built into entrepreneurs' internal control system. Therefore, errors are discovered only after the damage has occurred, very often during a supervision procedure performed by tax authorities. Our services also include internal control development related to taxes i.e. analysis of the existing internal control methods with the aim of determining their weaknesses i.e. suggesting measures for their improvement.

6. Support in the application of international agreements
Due to the introduction of the withholding tax against particular payments made to foreign persons that are not natural persons (in force since January 1, 2001) and the increasing presence of foreign natural persons in Croatia, during the last few years there has been an increasing need to avoid double taxation through the application of international agreements. The Republic of Croatia has concluded some of these agreements since it gained independence, whereas a certain number of agreements, concluded by the former Yugoslavia, was taken over through succession and therefore are still in force in the Republic of Croatia. We can provide to our clients updated information on those agreements that were concluded and are in force, as well as help in the analysis of these agreements by focusing on their individual cases. Analysis of international agreements may be of vital importance when it comes to tax planning, especially when it comes to business operations of a group's affiliates on the international level. Our tax planning support covers that segment as well.

7. Deferred tax calculation
Tax consulting is closely related to other regulations, especially those in the field of accounting. Regarding deferred tax calculations, it is important to have a good knowledge of the International Accounting Standards and Tax Regulations. Our services also cover these issues.

8. Support related to business combinations (mergers, affiliations, separations, de-mergers, acquisitions and similar)
Affiliations, mergers, acquisitions and similar types of transactions may be rather complex and demanding in the legal, accounting and tax sense. Therefore, an adequate planning and performance of these transactions must be based on an excellent knowledge and understanding of accounting and tax regulations as well as the rights of enterprises. Depending on aims that are planned to be realized through such transactions, these transactions can be performed in different ways. Our services include support in performing such complex transactions, enclosing an overall analysis of possible tax, financial and accounting effects. If necessary, we cooperate with lawyers specialized in the commercial law and use their legal expertise when finalizing this kind of transactions.