Services

 

TAX RETURN

Based on your foreign tax card, our company will do a free-of-charge calculation. You’ll get all the information on our commission, as well as an estimated amount of the prepaid tax, which can be deducted from the foreign tax office. Our free estimation does not oblige you in any way. Thanks to our estimation, clients receive information as to whether they should apply or not.

If after our calculation you decide to apply for a tax return, our company will fill out the application and send it to the respective institutions. You don’t have to concern yourself about the application, because our company, as your representative, will do all the necessary work. Our provision is paid at once for the complete service.

After a period of 3-5 months, depending on the country, you’ll receive your tax return directly onto your bank account or in the form of a cheque. All payments are confirmed as a tax approval by the foreign tax office, thereby ensuring transparency for the procedure. Remember, we track your application until your funds reach your bank account.

ADJUSTING TAX CARDS (PK FORMS)
According to the Income Tax Act, taxpayers who earn an income abroad are obliged to notify the Tax Administration of when they commence earning an income abroad, as well as when ceasing to do so. Equally so, they are obliged to submit a form for the purpose of registering into the Register of Taxpayers. It is also important to verify your residency in order to avoid double taxation of income earned abroad and in the country of residency, which in this case is in the Republic of Croatia. All such information and changes must be recorded on your tax card.
SUBMITTING ANNUAL TAX RETURNS
In certain cases, as a resident of the Republic of Croatia, you are obliged to submit an annual tax return in which, among other things, you indicate on a separate form your income earned abroad and tax paid abroad, which the Tax Administration will exempt or including in the local income tax. You are required by the end of February of each year to make the submission to the Tax Administration for the previous year.
CHILD SUPPORT

In EU member states, there are different forms of family benefits that serve to cover family expenses. These are, for example, parental allowance, child allowance, special needs childcare allowance, and the like.
If a family member is an employed or self-employed person, receives a pension or has residence in one of the member states, that person has rights to family benefits, even if the child does not reside in the same country.

If all members reside in the same country, then on the basis of employment, self-employment, the use of retirement or residency, family benefits can only be used in that country.

If the legislation of that country does not apply to the applicant, then the right to family benefits can be achieved from multiple member states.

In that case, EU regulations contain clear rules as to which country pays family benefits, i.e. which country is primarily responsible for making payments, and which country is secondary, i.e. which country pays an allowance to cover the difference.

For example, if a father is employed in Denmark, whereas the mother is employed in Croatia, the right to family benefits exists in both countries. Primarily, the responsibility belongs to the country of Denmark, and secondarily Croatia.

The application is submitted in writing to the relevant ministry based on the place of residence, i.e. according to the headquarters or seat of the employer by whom the worker is employed.

Completing the application requires the applicant’s necessary personal information, that of the household members and the child/children, and as to whether there is any other income from employment, pensions, and whether the child’s health is affected.

 

Documentation:

The applicant

A copy of their identity card or other type of identification document, proof of residence in the country of work, proof of welfare and pension insurance.

The child

An excerpt from the book of births, a copy of some form of identification, proof of schooling, certificate as to whether the child receives child allowance in Croatia, or any other form of welfare (scholarship, welfare assistance, and the like).

Other household members (and for those for whom child allowance is not been sought)

A copy of their personal identity card and/or birth certificate;

Determining total household income

The payslips for all months of work, document from the employer on earned income abroad; proof of total earned income by other household members;

Payment of child allowance

A notice from the bank confirming the bank account number (information on SWIFT/BIC and IBAN account numbers) and approval from the bank on payment of the allowance to the current account

When exercising rights to child allowance

It is not permitted to simultaneously gain rights to family benefits at the full amount for the same child, but instead only the difference is paid based upon which country is primarily responsible for the respective application.

COMPLETING THE JOPPD FORM FOR RESIDENTS OF THE REPUBLIC OF CROATIA WORKING ABROAD

Did you know that if you earn an income abroad from self-employment and continue to be a resident of the Republic of Croatia, you are obliged to inform the Croatian Tax Administration of such matters?

As a person earning an income abroad, you are obliged to submit a JOPPD form to the Tax
Administration. The form contains information relating to the type of income and the country in
which the income is earned. The form is submitted each month for the previous month in which you
earned an income, and is generally submitted in electronic form via e-Tax Administration.

SECONDED WORKER

A “seconded worker” (posted) refers to the case where a worker is sent by the Croatian employer to an EU member state or to a country outside of the EU, to undertake work for the employer over a particular period of time.

The seconding of works to another member state requires filling certain conditions, for instance, that the employer regularly undertakes his business in the host state and that the seconding of the worker to another country does not exceed 24 months.

Prior to seconding a work to EU countries, the employer must obtain an A1 Certificate from the Croatian Pension Insurance Institute which shows that the worker belongs to the welfare insurance system in Croatia and according to the Employer Contributions Act he is obligated to calculate and pay contributions. When doing the payroll, the base for calculating the contribution is done based on the information in the A1 Certificate (A1 Certificate for Work in an EU Member State or A1 Certificate for Work in a Number of EU Member States).

According to international treaties on avoiding double taxation, which have preference over host country provisions, the wages of a seconded work will be taxed in the country of the resident (Croatia), and not in the country in which the worker is sent if all the following conditions have been met:

  • The worker resides in another country over a period or periods that do not total more than 183 days over a period of 12 months which begins or finishes during the time of the respective tax year,
  • The income is paid by the employer who is not a resident of another country or it is pad in his name,
  • The income is not borne by a permanent establishment or permanent headquarters which the employer has in that other country.

If the above stated conditions, are not met, taxes are paid in the country in which the worker is posted and the Croatian employer is obliged to inform the Tax Administration of such matters.