The Tax Administration of the Republic of Croatia has published an official opinion on the taxpayer’s inquiry about the business bank account of craft as an account opened in Revolut Bank UAB. We transmit the opinion of the Tax Administration in its entirety.
Tax Administration Opinion
„Article 86, Paragraph 1 of the Personal Income Tax Act (Official Gazette No. 115/16, 106/18, 121/19, 32/20, 138/20 and 151/22) stipulates that state administration and judicial authorities and other state bodies, bodies and services of local and regional self-government units, institutes, non-profit organizations, entrepreneurs – legal and natural persons, shall make payments of receipts that are deemed to be income to payers of income tax and payments of receipts that are not deemed to be income, i.e. on which no income tax is paid, to natural persons, into their payment account under the regulation governing payment transactions in a bank, and exceptionally into cash in the prescribed manner.
Article 92, Paragraph 1 of the Personal Income Tax Rulebook (Official Gazette No. 10/17, 128/17, 106/18, 1/19, 80/19, 1/20, 74/20, 1/21, 102/22 and 112/22) stipulates that Article 86 of the Act, state administration and judicial authorities and other state bodies and services of local and regional self-government units, institutes, non-profit organizations, entrepreneurs – legal and natural persons shall make payments of receipts to natural persons, to their account for payment according to the regulation governing payment transactions with the bank, i.e. to non-residents to their account.
By the Tax Administration Opinion as of June 7, 2022, on changes related to the operations of the credit institution Revolut Bank UAB, there is no obstacle that the payment of receipts made to the accounts that taxpayers have opened in that bank since June 1, 2022, the Croatian National Bank published a notice on the approval of Revolut Bank UAB to expand the provision of services in the Republic of Croatia, such as opening and maintaining payment accounts in the Republic of Croatia.“
Given all of the above and that Revolut Bank UAB is approved to provide services for opening and maintaining accounts such as current or giro accounts in the Republic of Croatia, the Tax Administration considers that craft business operations can carry out through accounts opened at Revolut Bank UAB.
