Croatian Chamber of Trades and Crafts seeks tax changes for entrepreneurs

The Croatian Chamber of Trades and Crafts (HOK) has submitted proposals during public consultations to modify proposed tax legislation affecting flat-rate entrepreneurs. While the chamber notes that approximately 85% of these entrepreneurs would maintain their current tax and contribution burdens under the new system, HOK is seeking relief for roughly 16,000 entrepreneurs in the two highest revenue brackets.

For entrepreneurs earning between €40,000 and €50,000, HOK proposes recognizing 75% of expenses rather than the proposed 70%. For those earning between €50,000 and €60,000, the chamber suggests a 65% expense recognition rate instead of 55%. Additionally, HOK advocates for maintaining the existing 0.40 contribution coefficient as the uniform mandatory basis, noting that entrepreneurs can already voluntarily choose higher bases.

Other requests include extending the proposed 17.5% increase in blue diesel allowances to commercial fishermen and raising the threshold for the 10% corporate income tax rate to €2 million. HOK President Dalibor Kratohvil stated the goal is to create a more predictable and proportionate tax system.