1. How much you pay?

Annual receipts are divided into 5 earning grades, as indicated in the table below. You pay the tax depending on which class you belong to, and city tax is calculated depending on the municipality of your residence. An example is given in the table below for the city of Zagreb, which has a city tax rate of 18%, or the highest city tax rate, so for any other municipality, you will pay less city tax.

Annual base and tax calculation

Considering the 5 classes of receipts, there are also 5 annual bases according to which the annual is calculated tax. Thus, for the first grade, the base of HRK 12,750.00 (second column) is valid, according to which the total is calculated annual tax. Annual rate from 01.01.2021. is 10%, ie the annual income tax liability for the first grade amounts 12,750.00 * 10% = HRK 1,2750.00 . When we divide the annual obligation by the number of months in the year (HRK 1,2750.00 / 12), we get a monthly one obligation in the amount of HRK 106.25 which is listed in the 3rd column of the table.

Calculating surtax on tax

A surtax should be added to the income tax, which depends on the place of residence. For example, for the city of Zagreb who has a surtax rate of 18%, the surtax is 19.13 kn (106.25 kn * 18%). This brings us to the amount of HRK 125.38 in the 4th column of the table (106.25 kn + 19.13 kn) which you pay in Zagreb for the lowest tax class.

2. What are the payment deadlines?

The Tax Administration instructs you to pay taxes and surtaxes on income every 3 months, on the last day of each quarter as in the table below - 31.03., 30.06., 30.09. and 31.12.

This means that by these dates you are paying amounts of three months together, e.g. for Zagreb for the lowest class would every 3 months paid 125.38 * 3 = 376.14 kn. The IRS will not send you payment invoices, nor will you wait for your debit to appear on the tax-accounting card. It is important that you pay at any time by the stated deadlines. If you pay before the Tax makes debit, on the tax-accounting card you will be able to see the amount paid in green. On the day of debiting, this amount in green will disappear, because it will be debited by the Tax administration zero.

If you are late with payment, the Tax Administration will charge default interest. Then the amount that you owe it to be red. You can always check how much you owe or how much you subscribe to Tax-Accounting cards.

Example: On the Tax-Accounting Card in the picture below you can see the subscription in the amount of 5.15 kn, which means that more was paid for that amount than it should have been. In this case the lump sum has two choices: ask the Tax Administration to refund more money paid or, more often, simply when making the next payment, reduce the standard amount by HRK 5.15.