Natural persons who independently carry out economic activities as crafts business, independently perform professional or agricultural and forestry activities, as a rule, are subject to income tax. If they think that it is more favourable for them to pay profit tax, with regard to the keeping business records, tax rate, determination of the tax base under the Profit Tax Act, they may, by 31 December 2019 at the latest, submit to the Tax Administration the application to become profit tax payers as of January 1, 2020.
If in 2019 these taxpayers receive the income of HRK 7,500,000.00 or more, then as of January 1, 2020, they are required to pay profit tax instead of income tax. They are obliged to inform on this the Tax Administration by 15 January 2020 at the latest.
To become a profit taxpayer requires the change of keeping business records and the adjustment of the way in which the base of profit tax is determined in accordance with the provisions of the Profit Tax Act.