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Measure Name
Date when measure came into force
SSC employees - Change of highest monthly base 2014/01/01
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Generic Tax Name Social security contribution (Employees)
Tax name in the national language Doprinosi za obvezna osiguranja
Tax name in English Social security contribution - Employees
Member State HR-Croatia
Tax in force since 2003/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Social Security Contribution Act (Zakon o doprinosima), Official gazzete of the Republic of Croatia no. 84/08, 152/08, 94/09, 18/11, 22/12, 144/12, 148/13, 41/14 and 143/14

http://www.porezna-uprava.hr/en_propisi/_layouts/in2.vuk.sp.propisi.intranet/propisi.aspx#id=pro118

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments
 
Geographical Scope

The Republic of Croatia

 
Taxpayers
The base or rate of social security contributions paid by Employees on the income of employees and of blue collar workers Rates are identical
Bases are identical

Comments

The base is gross salary or gross income from occassional activities or prescribed base for self-employed income.


Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments

If a person from a Member State who works for the employer with registered office or place of business in another Member State, in accordance with European Union regulations on the coordination of social security systems, is a subject to the legislation of the Rupublic of Croatia, then he is obliged to pay the contributions in accordance with the provisions of Social Security Contribution Act.

A non-resident from a country with which the Republic of Croatia has not concluded an intergovernmental agreement on social security, is obliged to pay the contributions in accordance with the provisions of Social Security Contribution Act, depending on his work and/or social status in the Republic of Croatia.

For a foreigner from a country with which the Republic of Croatia signed an intergovernmental agreement on social security contributions, his liability depends on his work and/or social status in the Republic of Croatia and its status in the compulsory insurance in the state of residence, but also in accordance with the provisions of the contract.

The application process for foreigners in the Croatian Pension Insurance Institute is the same as the application procedure for workers who are Croatian citizens. Foreigners who establish regular working relationship with the Croatian employers pay contributions for compulsory insurance in the same way as workers who are Croatian citizens.



Comments
 
Tax object and basis of assessment
Employees pay social security contributions for








Comments

Base for all contributions listed here above is the same Yes No

As general rule, the income subject to Social Security Contributions of Employees includes























Comments

Income considered Domestic income
Worldwide income
Comments

For a Croatian citizen, who has arranged the insurance status of a country with which the Republic of Croatia signed an intergovernmental agreement on social security contribution, the obligations depend on the status of compulsory insurance in that state, but also in accordance with the provisions of that Agreement.


Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employees












Comments


Comments
 
Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units: 47658.0  EUR/Natcur
Cap in % of the tax base:

Reduction

The reduction is
No reduction
A lump-sum amount
In percentage of base:
     
Based on salary
Capped
Comments

An individual for a particular month in pension insurance, is liable for payment of pension contributions up to a maximum monthly basis. The highest monthly base is determined and applied to the calculation of contributions, namely:

  1. for employment income
  2. for elected and appointed persons
  3. for employees sent by the employer to work abroad.

The highest monthly base is calculated as a product of the average salary and the coefficient 6.0 for each year (for the year 2015 it is 47,658 HRK).

Also, an individual for a particular year in pension insurance, is liable for payment of pension contributions up to a maximum annual base. The highest annual base is calculated as a product of the average yearly salary and the coefficient 6.0 (for the year 2015 it is 571,896 HRK).


Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents

Social Security Contributions paid by Employees are tax deductible Yes No


Comments
 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employees
Pensions
15.00 %  From 0.00  EUR/Natcur  To 47,646.00  EUR/Natcur
5.00 %  From 0.00  EUR/Natcur  To 47,646.00  EUR/Natcur

Health care

Unemployment

Child care

Work-related illnesses and/or accidents

Education leave

Maternity leave

Others

Comments

The pension system in Croatia is reformed into the mixed - public/private system which is based on the three pillars scheme.

1st Pillar: Pay as you go (PAYGO) system financed by contributions and state budget revenues.

The first pillar mandatory pension fund is the responsibility of the Croatian Institute for Pension Insurance. All employees are obliged to pay 15% of their total monthly income into the fund. The protection of the beneficiaries is provided in the form of a minimum pension (guaranteed right), and restriction in the form of a maximum pension.
The acquisition of all first pillar pensions depends, in addition to age conditions, on the length of qualifying (mostly insurance) periods completed.

2nd Pillar: Compulsory pension insurance based on individual capitalized savings.

The second pillar is mandatory for persons who were under the age of 40 in 2002 and is additional to the first pillar. Persons who were aged between 40 and 50 in 2002 were able to opt out. Those who did, as well as people older than 50 in 2002 remained insured only under the first pillar, but their contribution equals 20% of gross salary, thus ensuring equality. For those insured under both pillars, the extra 5% of total contribution (additional to 15% paid under the first pillar) is directed to the second pillar funds (a private pension fund).

3rd Pillar: Voluntary pension insurance based on individual capitalized savings.

Open to all citizens since March 2002. Every person residing in Croatia can be insured under the 3rd pillar.


Special surcharges

There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments



Comments
 
Tax due date

Contributions are calculated simultaneously with payroll and have to be paid simultaneously with the salary.
Notwithstanding, if the salary or part of the salary has not been paid till the last day of the month for the previous month, contributions must be calculated on and are due on the last day of the month for the previous month.

If the contributions are calculated on a prescribed base, due date is till the last day of the month for each month.

 
Tax collector

Tax Administration

 
Special features
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d6112

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 17,493.55 HRK 5.29
2011 17,302.32 HRK 5.20
2010 17,290.55 HRK 5.27
2009 17,925.30 HRK 5.42
2008 18,100.36 HRK 5.21
2007 16,531.31 HRK 5.13
2006 15,084.35 HRK 5.12
2005 13,857.36 HRK 5.13
2004 13,139.27 HRK 5.24
2003 12,334.66 HRK 5.31
2002 11,338.01 HRK 5.36

Comments