CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. World Bank Advises Croatia On Tax Reform

World Bank Advises Croatia On Tax Reform

by Lorys Charalambous, Tax-News.com, Cyprus

19 December 2014


The World Bank has told Croatia that the nation's tax take could be boosted by modernizing the country's property taxes, reducing tax exemptions, and improving compliance levels.

The World Bank said that a modern value-based property tax in Croatia could add up to 1.5 percent of gross domestic product (GDP) in new tax revenues. Croatia is preparing to introduce a new 1.5 percent ad valorem property tax from 2016, but the World Bank has warned that further reforms are needed to ensure efficient collection.

It said the property tax base is currently eroded by exemptions and an incomplete property registry, which makes property valuation challenging. Property tax in Croatia accounts for about 0.3 percent of gross domestic product, against an average of 1.8 percent for Organisation for Economic Cooperation and Development (OECD) countries.

The World Bank has also called for reform of child tax allowances that could add revenues worth one percent of GDP. It added that improvements to tax administration and the tax risk assessment process, through the modernization of infrastructure and improvements at the nation's new Large Taxpayers Office, could bring in further revenue.

TAGS: compliance | tax | tax compliance | property tax | gross domestic product (GDP) | tax authority | social security | tax reform | Croatia

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »