1. Lecturer: Miljen Matijašević G10, room 6/I, Wed 11:00-12:00 e-mail: miljen.matijasevic@gmail.commiljen.matijasevic@gmail.com Session 6

2. 1. Homework check / Revision 2. Taxes in Croatia

3. Principles of Taxation

4. 1. What tax provisions are applied in the taxation procedure? 2. Do taxpayers have to file tax returns? 3. What happens if a document relevant for taxation are in a foreign language? 4. When must a taxpayer have an opportunity to make a declaration of facts relevant to taxation? 5. Can information obtained in the taxation procedure be disclosed by the employees of the Tax Administration? 6. How are benefits derived from crime taxed? 7. What happens in case of sham transactions?

5. Unit 3

6.  values of the Croatian economy ◦ free market ◦ entrepreneurial freedom  equal rights guaranteed to both domestic and foreign investors  a system of direct an indirect taxes  agreements to avoid double taxation

7. The chart shows the following information: 1. tax 2. taxpayers 3. tax base 4. tax rate 5. legal act (basis) 6. recipient of tax revenues (e.g. state, county, municipality/town)

8. Translate into Croatian  value added tax (VAT)  excise taxes  tax on car insurance premiums  tax on gains of the games of chance  personal income tax  corporate income tax  real property transfer tax  inheritance and gift tax

9. ANSWERS:  porez na dodanu vrijednost (pdv)  trošarine/posebni porezi  porez na premije automobilskog osiguranja  porez na dobitke od igara na sreću  porez na dohodak  porez na dobit  porez na promet nekretnina  porez na nasljestva i darove

10. Translate into Croatian  motor vehicle tax  boat tax  slot-machine tax  consumption tax  second home tax  trading name tax  public land use tax  local surtax

11. ANSWERS:  porez na cestovna motorna vozila  porez na plovila  porez na automate za zabavne igre  porez na potrošnju  porez na kuće za odmor  porez na tvrtku ili naziv  porez na korištenje javnih površina  prirez

12.  STATE TAXES ◦ VAT ◦ excise taxes ◦ tax on car insurance premiums ◦ tax on gains of the games of chance ◦ corporate income tax ◦ real property transaction tax (40%) ◦ inheritance and gift tax (for immovable property – 40%)

13.  COUNTY TAXES ◦ inheritance and gift tax (monetary and movable property) ◦ motor vehicle tax ◦ boat tax ◦ slot-machine tax ◦ personal income tax (partly)

14.  MUNICIPALITY/TOWN TAXES ◦ personal income tax (partly) ◦ real property transfer tax (60%) ◦ inheritance and gift tax (immovable property – 60%) ◦ consumption tax ◦ second home tax ◦ trading name tax ◦ public land use tax ◦ local surtax

15.  Do the exercises on p.12

16. Thank you for your attention!