Beginning in 2012, additional categories of taxpayers in Croatia are required to submit tax returns and other reports electronically.
Those who fail to electronically submit tax returns and other reports may be subject to penalties, ranging HRK 5,000 to HRK 500,000* and for the responsible person ranging from HRK 2,000 to HRK 100,000.
*HRK 500,000 = approximately US $85,8000
Taxpayers who are required to electronically submit tax returns and other reports as of 1 January 2012 include:
• Medium and large-sized entrepreneurs (as defined by Croatia’s accounting law)
• VAT taxpayers whose annual taxable deliveries of goods and services exceed HRK 800,000 (domestic taxable deliveries and exports)
If not otherwise required to submit tax returns and other reports electronically, employers or those paying salaries and pensions with respect to more than 100 employees, retirees, and other persons are only required to electronically submit monthly information forms.
Those taxpayers not required to file electronically may voluntarily register to submit their returns electronically.
Tax returns that can be submitted electronically include:
• Monthly and annual VAT returns
• Monthly reports on salaries and other income
• Annual corporate income tax returns
Certain tax returns and reports must be physically submitted on electronic media, including:
• Annual information returns on salaries or pensions
• Annual reports on allowances disbursed and the advance payments of withholding tax on other income, income from property rights, income from capital and income from insurance
• Annual information returns on personal income tax deductible insurance premiums and voluntary health insurance premiums
For more information, contact a tax professional with the KPMG member firm in Croatia (www.kpmg.hr; Kristina Grbavac).