Proposal of the Act on amendments and changes in the Act on contributions
Tax Alert, March 2014
On the conference of the Parliament which was held on 12 March 2014 the Proposal of the act on amendment and changes in the Act on social security contributions was adopted. The new Act enters into force on the same day when it is published in the Official Gazette.
The following changes are introduced:
- Increase in rate of the contribution for health insurance from 13% to 15%. New health insurance rate will apply to insurance period commencing after 31st March 2014.
- For the insured person who is employed with the employer with its seat registered in another EU Member State, a stipulation is introduced according to which due date for the payment of social security contributions is eight days from the date of payment of salary. For the payment of benefit in kind realised from employer with registered office in another Member State, deadline for payment of contributions is eight days from the last day of the month for the previous month.
- Payment of obligation for unemployment contributions at a rate of 1,7% was introduced for the following categories of insured person:
- For insured person on the basis of performing independent activity (sole traders, crafts etc.), which are paying contributions based on performing independent activity;
- For insured person on the basis of performing independent activity from which they gain profit and where the base for calculation of contributions is entrepreneurial salary;
- For insured person on the basis of the member of the board and executive director of the company;
- For insured person on the basis of employment in Croatia with the employer with its seat registered abroad.