Great news has arrived about the publication of the Ordinance on Amendments to the Ordinance on Income Tax, which we announced in one of the previous articles. Namely, the Rulebook was published in the Official Gazette no. 112/22 and came into effect on October 1, 2022.
The most important changes concern the increase in the number of tax-free receipts, which is positive for all employers and employees. Below, Confida Croatia provides an overview of changes and new amounts.
Changes in the amounts of tax-free receipts
In the aforementioned Ordinance, the amounts of tax-free receipts were officially increased. Namely, in Article 7, paragraph 2 is changed under the following numbers: 5, 14, 18, 31, 32, 34. In the following table you can see which receipts and amounts are involved:
| No. | Name | Amount |
|---|---|---|
| 5. | Occasional prizes (Christmas, vacation, etc.) | up to HRK 5,000.00 |
| 14. | Severance pay upon retirement | up to HRK 10,000.00 |
| 18. | A gift to a child up to 15 years old (who turned 15 by December 31 of the current year) | up to HRK 1,000.00 per year |
| 31. | Fees for the use of a personal car for official purposes | up to HRK 3.00 per kilometre travelled |
| 32. | Monetary awards for work results and other forms of additional employee remuneration (additional salary, monthly salary supplement, etc.) | up to HRK 7,500.00 per year |
| 34. | One-time cash benefits to cover the costs of food for workers | up to HRK 6,000.00 per year |
Receipts from the table are limited on an annual basis, therefore employers are allowed to pay the difference up to the new tax-free amount until the end of 2022.
