The Ministry of Finance has launched a public consultation process concerning a proposed amendment to the Croatian Income Tax Act, as indicated by a notice dated 31 July 2026. The consultation, accessible through the e‑Savjetovanje portal, invites stakeholders, tax professionals, business associations, and the general public to submit comments, observations, and suggestions regarding the draft legislative text. The primary objectives of the amendment include clarifying certain taxation thresholds, introducing additional exemptions for small‑scale entrepreneurial activities, and aligning national regulations with recent European Union directives on fiscal transparency. The draft also proposes modifications to the calculation of advances on personal income tax, adjustments to the criteria for determining tax residency, and revisions to the penalty framework for late filing. Participants are encouraged to provide detailed analyses of the anticipated economic impact, the practicalities of implementation for small and medium‑sized enterprises, and the potential effects on the overall tax base. The consultation period is expected to remain open for several weeks, after which the Ministry will compile a synthesis report summarising the feedback received. This report will be presented to the Government’s legislative commission, which will decide on the final form of the amendment. The initiative reflects the Administration’s commitment to participatory law‑making and to ensuring that new fiscal provisions are both economically sound and socially equitable.
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