With effect from 1 July 2010, the provisions of the Croatian foreign currency legislation which prohibited residents, excluding banks, from granting short-term loans with a repayment period of less than 3 months to non-residents, except as part of direct investments abroad, have been abolished. The abolishment of these provisions should enable Croatian businesses, especially those which are part of multinational groups of companies, to utilize any surplus cash funds for group cash optimization purposes and to yield the relating benefits for their business in the form of financial income or reduced financing expense: so called “cash pooling”. More...

The Croatian Parliament has adopted Amendments to the Corporate Profit Tax (CPT) Law which will come into force as of 1 July 2010 (National Gazette, 80/10). The most significant amendments are summarized here.

The Croatian Parliament has adopted Amendments to the Personal Income Tax (PIT) Law which will come into force as of 1 July 2010 (National Gazette, 80/10). The Croatian Parliament has adopted Amendments to the Law on special tax on salary, pensions and other receipts and the Law on special tax on self employment income and other receipts (National Gazette 56/10). More...

Following the many challenges the financial services industry has faced over recent years, there appears to be a decidedly more optimistic feel emerging. Financial institutions should now be considering how fundamental strategic priorities should be pursued in the new, post-crisis environment.

The Global Business Outlook survey measures business optimism around key business indicators such as revenues, profits, activity and employment. The March 2010 edition provides evidence of robust economic recovery now taking hold across virtually all key markets.

Managing tax and statutory compliance in today’s highly complex economic and regulatory environment is no easy task.

Recent developments in tax law and practice, particularly in value added tax and personal income tax legislation, as well as new developments in accounting standards, companies law, labour law and other regulations increase the risk of occurrence of oversight, misinterpretation, inappropriate application and error. More...

The Croatian Government introduced yet another set of Amendments to the Foreign Currency Law on 17 December 2009. Certain provisions of the Croatian Foreign Currency Law have been amended such that the announced liberalisation of foreign transactions has once again been postponed.

The Amendments were announced in the National Gazette, edition 153/09, and entered into force on 31 December 2009.¸More...

Following the amendments of the VAT Law, effective as of 1 January 2010, the VAT Regulations have been published in the National Gazette 149/09 dated 15 December 2009. The VAT Regulations have prescribed detailed guidance, and we summarise key issues on the following link: Tax Alert No 5 (Porezne novosti broj 5).

On 4 December 2009, the Croatian Parliament enacted a new Labour Law (National Gazette 149/09).

The new Labour Law brings some important changes, which include inter alia the following:

· Exemption of registered management members, executive directors and other management who in accordance with the law are authorised to independently or jointly represent the company, from the provisions of the Labour Law regulating termination of employment relationship, meaning that those rights and obligations should be regulated internally by the parties;

More...

KPMG International’s 2009 Corporate and Indirect Tax Rate Survey illustrates a milestone in global tax policy, as governments – driven by the need for more revenue – are implementing proactive measures to increase the tax take from both indirect taxes and the tax base for corporate income taxes.

KPMG’s report on key transfer pricing issues as the world emerges from recession can help tax departments appreciate the longer-term and global perspective necessary to achieving results today and exploiting change beyond the current climate for enduring benefit. A collection of articles from leading transfer pricing professionals at KPMG member firms, the report highlights the need to take a careful look at the guidance from tax authorities, as well as current practices, in order to redraw transfer pricing policies in the new and different economic environment.

KPMG’s Global Transfer Pricing Review can help multinational companies stay current with rapidly-changing transfer pricing rules worldwide. Compiled from information supplied by KPMG member firms, the Review offers detailed information on transfer pricing regulations in 60 countries.

We are starting to see signs of recovery across the world. Whilst some businesses are still battling for survival, most companies are starting to think about what their next steps and how they will make the most of opportunities that will certainly arise in the near future. The fourth issue of Agenda includes a number of thoughts on the road to recovery, including advice on managing change and the uncertainty of how governments will play their roles.

While the business landscape has changed in the past two years, the challenges for many financial services companies should be familiar: developing a competitive business model, managing risk, building a winning brand and competing profitably and cost-effectively. Our publication focuses on how they adapt to address these challenges in the new environment.

Zbog brojnih noviteta i nedavnih promjena u poreznom zakonodavstvu, KPMG u Hrvatskoj vas sa zadovoljstvom poziva na slijedeće seminare: "Promjene u PDV sustavu" koji će se održati u utorak, 29. rujna 2009. godine od 09:00 do 11:30 sati u zagrebačkom Regent Esplanade Hotelu te "Razvoj u području transfernih cijena i druge porezne aktualnosti" koji će se održati također u zagrebačkom hotelu Regent Esplanade u utorak, 06. listopada 2009.. godine od 09:00 do 11:30 sati. Više o seminarima možete saznati ovdje. Seminari će biti na samo na hrvatskom jeziku (bez simultanog prijevoda na engleski jezik), a broj sudionika je ograničen. Sudjelovanje na seminarima je besplatno, a prijaviti se možete putem slijedećeg obrasca.

As of 1 January 2010 the VAT Law will have a service exemption for financial services instead of the currently applicable institutional exemption. Find more details on how will the financial services sector be affected by these amendments on the following link: Tax Alert- August 2009 No. 4

Poreznenovosti - kolovoz 2009. Broj 4)

KPMG’s International Executive Services practice has provided insights into personal tax trends by conducting a cross-border survey of personal income tax and social security rates from 86 countries with historical data from 2003 to 2009 in a new report, Individual Income Tax and Social Security Rate Survey 2009. This is the second year that KPMG’s IES practice has completed this report, which looks at how people have been taxed in different parts of the world and how different governments approach the difficult task of raising funds for necessary public services without losing the support of their citizens.

In its session of Friday, 31 July 2009, the Croatian Parliament has adopted the amendments proposed by the Croatian Government following its session of Thursday, 30 July 2009 to the proposed Law on special tax on salaries, pensions and other receipts, as outlined in our Tax Alert of 25 July 2009. More...

In its session of Thursday, 30 July 2009, the Croatian Parliament has adopted tax law changes as follows:

- VAT to increase to 23% from Saturday, 1 August 2009
- Excise taxes on passenger vehicles, other motor vehicles, vessels and airplanes to increase
- Contribution on services provided in mobile communication electronic networks to be imposed as outlined in our Tax Alert of 25 July 2009.
More...

In its extraordinary session of Friday 24 July 2009, within the framework of the third rebalance of the state budget and with the aim of introducing anti-recession measures, the Croatian Government has proposed several tax law changes. The tax law changes are targeted at levying new taxes which would provide additional revenues for the state budget and, at the same time, would cut state budget expenditures (by the resulting reduced pension plan payouts).

Considering that the above proposed laws are scheduled to appear on the Croatian Parliament's agenda on Monday, 27 July 2009, we will be updating you on whether the laws will be adopted as proposed.

Please find more details on the proposed tax law changes on the following links.
- Tax Alert July 2009 No. 1 (Porezne novosti Srpanj 2009. Broj 1)
- Tax Alert July 2009 No. 2 (Porezne novosti Srpanj 2009. Broj 2)