Catholic Church to Now Pay Tax in Croatia

Croatia-WeekThe Catholic Church in Croatia are the big losers in a tax shake up in the country as the government introduces new reforms in an attempt to fill the state coffers…

On Thursday at a cabinet sitting, the Accounting Act for Non-profit Organisations was given the green light, putting  an end to shady accounting practices and forcing non-profit organisations, such as the powerful Catholic Church, to submit regular income and expenditure and asset reports to the Ministry. Around 50,000 organisations in Croatia receive around 1.5 billion kuna (165 million EUR) of state money, and up until now were not obliged to submit financial reports. But that is all about to change as the current Croatian government, under Finance Minister Slavko Linić, continues its mission to clean up Croatia’s grey economy.

All non-profit organisations with income over 230,000 kuna (30,000 EUR), including the Church, will now have to form a seperate company and submit financial reports to the Ministry, who in turn will make the information public. Tax inspectors will also go out into the field to ‘control’ the situation.

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