|
|
Post by Karl on Feb 10, 2012 12:19:41 GMT 1
|
|
|
|
Post by Madgolfer on Feb 13, 2012 10:09:11 GMT 1
Ouch. Vehicle costs and entertaining expenses hit hard as well as closing the loophole on taxing pensions. Not sure if I understand this bit; "Introduction of a withholding tax of 12% on payments of dividends and similar distributions of profit share to foreign legal entities starting from payments made on 1 March 2012, except for payments of dividends and
profit shares which were earned up to and including
31 December 2000" They are not seriously thinking about backdating it to 2000  |
|
|
|
Post by crojoe on Feb 13, 2012 10:55:51 GMT 1
Ouch. Vehicle costs and entertaining expenses hit hard as well as closing the loophole on taxing pensions. Not sure if I understand this bit; "Introduction of a withholding tax of 12% on payments of dividends and similar distributions of profit share to foreign legal entities starting from payments made on 1 March 2012, except for payments of dividends and
profit shares which were earned up to and including
31 December 2000" They are not seriously thinking about backdating it to 2000 So Rib won't be able to write off any purchasing of lovely avatar pictures as an entertaining business expense. |
|
|
|
Post by crojoe on Feb 13, 2012 11:04:15 GMT 1
Ouch. Vehicle costs and entertaining expenses hit hard as well as closing the loophole on taxing pensions. Not sure if I understand this bit; "Introduction of a withholding tax of 12% on payments of dividends and similar distributions of profit share to foreign legal entities starting from payments made on 1 March 2012, except for payments of dividends and
profit shares which were earned up to and including
31 December 2000" They are not seriously thinking about backdating it to 2000 As of 1 March 2012, input VAT cannot be recovered on purchases or rent of cars, boats and other personal means of transport (with certain exceptions) and on entertainment costs. Many people used this method of buying vehicles and such via their companies to get back tax and write the purchase off on company books, so maybe this is why they are bringing in this change? |
|
|
|
Post by Ribaric on Feb 13, 2012 11:39:12 GMT 1
Crojoe said...
"Many people used this method of buying vehicles and such via their companies to get back tax and write the purchase off on company books, so maybe this is why they are bringing in this change?"
I'm sure you've got this right Joe. I recall the UK had a system that required you to buy a van in order to be able to claim it as a business vehicle. Normal cars had strict limits as to how much business work you could claim it was doing. If this loophole is closed than look out for droves of dealerships to give up.
|
|
|
|
Post by Madgolfer on Feb 13, 2012 12:43:47 GMT 1
And this............
Another bill would introduce as of March 1 a dividend tax of 12% that will be levied in respect of both resident and non-resident legal entities. Local media quoted finance minister Slavko Linic as saying that special provisions will exempt from this tax small shareholders with dividend income of up to 12,000 kuna.
A tax exemption is proposed to be legislated from the beginning of 2013 for earnings reinvested in the core capita of the respective company.
So no way out for major shareholders in 2012 then? 12% on all dividends after 1st March. It was a good loophole while it lasted I supose.
|
|
|
|
Post by crojoe on Feb 13, 2012 14:07:00 GMT 1
Crojoe said... "Many people used this method of buying vehicles and such via their companies to get back tax and write the purchase off on company books, so maybe this is why they are bringing in this change?"I'm sure you've got this right Joe. I recall the UK had a system that required you to buy a van in order to be able to claim it as a business vehicle. Normal cars had strict limits as to how much business work you could claim it was doing. If this loophole is closed than look out for droves of dealerships to give up. I know in the Uk you can as a self-employed person use you're own vehicle for business transport, but there is a percentage (which would be logical seeing most small self-employed persons would not purchase a vehicle solely for business), but you have to be able to prove it. Here, they give you a log book to put in distance and destination when using a vehicle for business, which isn't a bad idea. The only difference I see in Croatia is a business here can almost right off most things as a company expense (including entertainment or service), thus reducing their tax bill big time. A great idea, but I can see how it reduces tax contributions. What has been a favourite thing for owners of a d.o.o. company is to purchase vehicles for all members of the family, furniture, appliances, holidays and you name it. I'm not against it, but I bet any government wouldn't be to happy with this setup. So, I think is why some of the changes? |
|
