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Zagreb - During a parliamentary debate on the final bill to amend the Income Tax Act on Tuesday, both the ruling majority and opposition welcomed the rise from HRK 15,000 to HRK 24,000 that a dependent family member can earn in a year and still qualify as a dependent.
Boris Lalovac (SDP) also welcomed the increase in the tax-free income threshold for working pupils and students.
"We support that - with an indication that it should be increased in the future, especially considering rental costs, particularly in Zagreb," said Lalovac.
Lawmakers also supported the final bill of amendments to the Law on Administrative Cooperation in the Tax Area and the Law on Credit Institutions.
Due to the rapid digitisation of the economy and the cross-border dimension of business through so-called platforms, further strengthening the fight against tax fraud and preventing tax evasion is necessary. State-secretary in the Finance Ministry Zdravko Zrinušić said that this refers to platforms founded in Croatia and those located in other countries but used by our citizens (Booking.com, Glovo, Wolt, Uber, etc.).
Income earned by foreigner with real estate in Croatia will also be submitted to the Tax Administration
Regarding real estate, Zrinušić said that income earned by foreign citizens who own real estate in Croatia, rent it out, and do not report that income to Croatia's Tax Administration will now also be reported to the Tax Administration.
When Marijana Puljak (Centre) asked about this matter, Zrinušić said that, according to eVisitor, out of 100,000 properties for rent in Croatia, 4,980 were rented out by foreigners.