News
Tax changes for 2024
Written by: Mladen Ardalić
Wednesday, 08/12/2024.
As 2024 approaches, below are several tax changes effective from January 1st that we believe are important for your business.
New amounts
From January 1st, 2024, taxpayers subject to fiscalization can pay in cash to another fiscalization obligor for the purchase of products and services up to a sum of €700.00 per invoice.
From January 1st, 2024, tangible and intangible assets are considered items and rights with an individual acquisition cost exceeding €665.00 (previously €464.53) and a lifespan longer than one year.
The tax rate on income from dividends or profit shares is increased to 12% (until the end of 2023, the rate remains at 10%).
The threshold for entering and exiting the VAT system from January 1st, 2024, is €40,000.00. The application for entering and exiting the VAT system must be submitted by January 15th, 2024. If a taxpayer voluntarily enters the VAT system, they are obliged to remain in the registry for the next 3 calendar years.
New amounts of non-taxable income
The amounts of non-taxable income have been revised and as of January 1st, 2024, are as follows:
- Occasional award: €700.00
- Award for work results: €1,120.00
- Cash lump-sum allowance for employee meal expenses: €1,200.00
- Meal expenses based on credible documentation: €1,800.00
- Scholarships for regular education of pupils and students: €560.00
- Scholarships for outstanding achievements: €840.00
- Sports scholarships: €560.00
- Costs of using a private car for official purposes are increased to €0.50 per kilometer
- Daily allowance for official domestic travel is increased to €30.00
Alignment of share capital in Euros
There is no prescribed deadline for aligning the share capital to amounts in euros for LLCs and joint- stock companies, meaning they do not have to align their share capital and business interests until the first change of the Articles of Association (founding act) in the court register.
Tax position of tips
Taxpayers subject to fiscalization who receive tips for a well-performed service should:
Provide the Tax Administration with data on the tip received through an established electronic connection with the invoice issued for cash transactions.
Immediately report the received tip through electronic payment devices that must allow the use of software enabling compliance with the provisions of the Fiscalization Act. Data delivery is in real- time.
Ensure that information about tips is included in records and accounting documents. Records should be structured to allow tracking of the current and final state of data in the payment device or cash register.
Salary calculation changes
Personal deductions are increased from €530.90 to €560.00, as are deductions for dependent family members.
The minimum gross salary is increased to €840.00 from January 1st, 2024.
Significant local tax changes
The payment of income tax, as prescribed by the representative bodies of local self-government units through their decisions, is abolished. Surcharge on all types of income: salary, fees, income from property, income from capital, and new income tax rates are introduced.
The monthly basis for calculating contributions to the Pension Insurance Fund (MIO I. stage) is reduced (for a gross salary up to €700.00, the tax relief is €300.00, and for salaries from €700.01 to €1,300.00, it gradually decreases).
For employees working for multiple employers, as well as newly registered employees, a statement from the worker about the number of employers and the gross salary amount with each employer in the month of registration or calculation is required. This statement must be submitted within the legal framework before salary calculation; otherwise, we won’t be able to use it.
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