New round of Tax reform – Year 2024 – Part 2

20. October 2023.

At the session of the Croatian Parliament held on September 28, 2023, amendments to the existing tax regulations were adopted. Most of the adopted legislative changes enter into force on January 1, 2024. Below is an overview of the main changes in legislative regulations.

Act on the Amendments to the Contributions Act

Contributions for pension insurance – the monthly base for calculating contributions for pension insurance in the 1st pillar is reduced:

a reduction of EUR 300.00 is introduced for gross salaries up to EUR 700.00;

a linear reduction is introduced according to the following calculation: 0.5 x (1.300 – gross salary) for gross salaries from EUR 700.01 to EUR 1.300.

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Please keep in mind that legislation tends to change frequently. This article is therefore necessarily based on our understanding and correct interpretation of the law and practice at the time of issuing this atricle. This article will not be updated due to changes in legislation that occur after this article is published.