As its name clearly shows, this is a State Budget revenue, levied for gathering of public expenditure funds, which are now deficient as a result of the economical crisis in Croatia.
The introduced tax has an “expiration period”, since the Act on the Special Tax on Salaries, Pensions and Other Receipts (Official gazette 94/09) is intended to be applied to the period of August 1st 2009 until December 31st 2010, that is, of October 1st 2009 until February 28th 2011.
Namely, the basis listed below under numbers 1. to 3. are subject to the first period of application (till Dec 31st 2010), while the basis listed under numbers 4. to 7. are subject to the second period of the application (till Feb 28th 2011).
As the Law was enacted under urgent procedure the second group of taxpayers was simply “overlooked”.
The crisis tax is paid on:
1.payrolls and pensions
2.second income
3.payments of dividends and shares in profit
4.craft and freelance business income
5.receipts from rental fees and different material rights (such as copyright assignment and similar)
6.receipts from alienation of real estates and property rights
7.capital income (receipts from interest, owner’s exceptions from profit for the current period and shares that have been acquired through a grant or optional purchase of treasury stocks)
or -in other words, on all receipts generated by legal entities or natural persons in Croatia, with the exception of NON–RESIDENTS. Hence, foreign legal entities and natural persons are excluded from this law.
The tax base for the calculation of the ‘crisis tax’ in the net receipt (the receipt that is left after all legal levies, that is taxes and contributions have been paid):
oup to 3.000,00 kuna the tax is not calculated
ofrom 3.000,00 to 6.000,00 kuna – the special tax is calculated at a 2% rate
ofrom 6.000,00 kuna – the special tax is calculated at a 4% rate
The calculation is based on MONTHLY receipts from ONE PAYER on the SAME BASIS. That is, payments received on different bases and from different payers are NOT BEING CUMULATED.
The one, obligated to calculate and pay the ‘crisis tax’ is always the PAYER, except for cases when residents receive payments from abroad, where those residents should themselves calculate and pay the ‘crisis tax’ on receipts from abroad, as well as inform the Tax Administration through the IPP Form (otherwise submitted by all payers until the 15th of the month for the previous monthly period). Although this is not explicitly provided by the Law, the Tax Administration introduced it through its interpretation.
And, as usual, the ending is reserved for criminal provisions: in case the payment of the special tax or the presentation of the IPP Form to the Tax Administration has not been made in time or at all, the prescribed fine is from 20.000,00 to 500.000,00 kuna for legal entities, plus a fine of 5.000,00 to 100.000,00 kuna for the liable person within that entity.
The fine a natural person would pay for the same offences an amount from 5.000,00 to 100.000,00 kuna.
The Tax Administration and Financial police carry out the supervision of implementation of the Act on the Special Tax on Salaries, Pensions and Other Receipts.
