Tax
Local-authority income tax rates, corporate profit tax and a real-estate transfer tax
Personal income tax is charged at two rates whose levels each municipality now sets within statutory bands. Corporate profit tax has a reduced rate for smaller companies, and property transfers attract a transfer tax.
Key rules
- Municipalities set the lower and higher personal income tax rates within statutory limits.
- Corporate profit tax has a reduced rate for companies below a revenue threshold.
- Real-estate transfer tax applies where VAT is not charged on the transfer.
Governing law
- Income Tax Act (Zakon o porezu na dohodak)
- Profit Tax Act (Zakon o porezu na dobit)
In practice
Because rates now vary by municipality, the employee's place of residence affects net pay and payroll configuration.