Annual income tax calculation

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Annual income, annual income tax and income tax surtax are determined and calculated: by filing an annual tax return or in a special procedure for determining annual income tax.  

1. Annual income tax return

The annual income tax return is filed by the end of February of the current year for the previous year.
 
Taxpayers who are required to file an annual income tax return:
  • Taxpayers who generate income in the tax period from self-employment activities and activities based on which income is determined and taxed as self-employment income pursuant to the information from the prescribed financial records and registries
  • Taxpayers who are residents, for income from employment which, according to a special act, they generate as members of a ship crew in international voyage
  • Taxpayers who were requested by the Tax Administration that they subsequently pay income tax. 
 

2. Special procedure for determining annual income tax

Based on information on the total generated annual income available to the Tax Administration, it ex officio determines and calculates the total annual income tax and income tax surtax in a special procedure for determining annual income tax for the following income taxpayers:
  • Income taxpayers for income from employment (salary and pension), and
  • Income taxpayers for other income not deemed final.

The following is deemed final other income:
  • Other income from reimbursement of contributions
  • Other income from the difference in the value of assets and the amount of funds with which they were acquired
  • Other income from temporary or occasional seasonal jobs in agriculture.

The following is deemed final income (other than other income which is deemed final):
  • Income from property and property rights (other than income from property which is determined pursuant to the information from the prescribed financial records and registries)
  • Income from capital

Implementation of the special procedure for determining annual income tax and income tax surtax

The Tax Administration determines the taxpayer’s annual income generated in the calendar year (tax period) and the difference between the income tax and income tax surtax to be paid or refunded pursuant to the registries and information available to it and pursuant to the information provided by the taxpayer and issues an interim tax decision on this. It delivers this decision to the taxpayer no later than 30 June of the current year for the previous year.
 
If the taxpayer considers the information from the interim tax decision to be incomplete or inaccurate, they can file a complaint against it no later than by 31 July of the current year for the previous year. Exceptionally, taxpayers who receive their interim tax decision after 30 June of the current year for the previous year may file their complaints within 30 days from the date of receipt of the interim tax decision.
 

3. ZPP-DOH form

Citizens to which a special procedure applies may, if they wish to exercise or waive their rights prescribed by the Income Tax Act for 2020, submit a Request for the acknowledgement of rights in a special procedure on the ZPP-DOH form to the competent Tax Administration branch office by 1 March 2021.  Please note that rights may be exercised for:  dependent members of the taxpayer's immediate family and/or children; percentage and type of disability established and/or residence in the territory of local self-government units classified as group I assisted areas pursuant to a special regulation and residence in the territory of the City of Vukovar and/or the right to an increase of the personal allowance for the paid contributions for local health insurance or donations made.
Taxpayers who wish to redistribute a part of the personal allowance for dependent members of the immediate family and/or children and taxpayers—inheritors who submit an annual tax return on behalf of a deceased person may also act in the manner described above, in which case the information provided on the form will be taken into consideration when applying the special procedure.
 
When submitting the ZPP-DOH form, there is no need to enclose authentic documents as follows: extracts and certificates from the register of births, marriages, and deaths, extracts and certificates from the register of life partnerships since the Ministry of Finance, Tax Administration, has access to them, unless the Tax Administration request this in a further tax procedure.
 
The Ministry of Finance, Tax Administration, has enabled citizens to submit the aforementioned form via the Tax Administration’s e-services—the single Tax Administration portal known as e-Tax Administration.