Croatian Parliament Adopts Tax Reform Legislation Including Tax Rate Cuts and CbC Reporting

On 2 December 2016, the Croatian parliament adopted a number of laws as part of Croatia's tax reform. Key measures include:

• The standard corporate tax rate is reduced from 20% to 18%, and a reduced corporate tax rate of 12% is introduced for small business with annual revenue up to HRK 3 million;
• The number of individual income tax brackets for employment income is reduced from three to two as follows:
  • annual income up to HRK 210,000 - 24%
  • annual Income in excess of HRK 210,000 - 36%
• The V…