Taxation of Capital Gains and Reporting Through the JOPPD Form

The Tax Administration of the Ministry of Finance has published news related to the taxation of capital gains and reporting via the JOPPD Form.

“Regarding the implementation of the provision of Article 70, paragraph 4 of the Income Tax Act (NN. 115/16, 106/18, 121/19, 32/20 and 138/20; hereinafter: the Act) which prescribes that the taxpayer – holder of financial assets is liable to capital gains tax based on capital gains referred to in Article 67, paragraphs 1 and 2 of the Act, except for capital gains based on alienation of shares in the company’s capital that are not transferable in the capital market by a special regulation, calculate, suspend and pay by the last day of February of the current year for all capital gains realized in the previous year fewer capital losses from Article 67, paragraph 11 of the Act at the rate of 10%.

Taxpayers who earned total income from capital in the country through financial intermediaries, based on capital gains in 2021 and received a  notice to their home address, and the realized capital gain according to the submitted notice is less than 134.00 HRK and the income tax liability on the basis of capital gains, applying the average surtax rate of 12%, would amount to a total of HRK 15.00, are not obliged to submit the JOPPD Form by 28 February 2022, and no later than the next working day or 1 .March 2022, in accordance with Article 77, paragraph 11 of the Ordinance on income tax (NN 10/17, 128/17, 106/18, 01/19, 80/19, 1/20, 74/20 and 1/21) which stipulates that if the cost of submitting the JOPPD Form would be disproportionate to the collected income tax and surtax on income tax, the application may be considered the delivery of data at the request of the Tax Administration, in accordance with Article 79, paragraph 1 of the General Tax law (NN 115/16, 106/18, 121/19, 32/20 and 42/20), based on an individual notification of the Tax Administration or publication via the official website.

The application, in this case, shall be deemed to have been submitted, the submission of data by financial intermediaries (issuers of the notice), under the provisions of Article 79, paragraph 1 of the General Tax Act. ”

Read the original text on the website of the Tax Administration.

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