Small businesses seek changes to proposed tax rules for 16,000 entrepreneurs
- by croatiaweek
- in Business
ZAGREB, 29 August 2026 – The Croatian Chamber of Trades and Crafts (HOK) has called for changes to proposed tax legislation affecting flat-rate entrepreneurs with annual revenues between €40,000 and €60,000.
HOK submitted its proposals during the ongoing public consultation on tax changes, arguing that the proposed increase in the tax burden should be moderated for entrepreneurs in the two highest revenue brackets, Index.hr reports.
Under the proposed system, HOK says almost 85% of flat-rate entrepreneurs would retain their existing tax and contribution burden. According to the chamber, this would leave that group with almost €27 million more annually than under a broader increase in costs.
However, HOK is seeking different treatment for around 16,000 entrepreneurs in the €40,000–€60,000 brackets.
For entrepreneurs earning between €40,000 and €50,000, it proposes that 75% of expenses be recognised instead of the proposed 70%.
For those earning between €50,000 and €60,000, HOK is proposing 65% recognised expenses, rather than the proposed 55%.
Under its proposal, taxable flat-rate income would therefore be €12,500 in the first bracket rather than €15,000, and €21,000 in the second instead of €27,000.
HOK is also asking that the existing 0.40 contribution coefficient remain the uniform mandatory basis for all flat-rate entrepreneurs.
The chamber argues that entrepreneurs who want to pay higher contributions already have the option of voluntarily choosing a higher contribution base.
HOK has additionally called for a proposed 17.5% increase in blue diesel allowances to be extended to commercial fishermen as well as farmers.
The organisation is also seeking an increase in the threshold for the 10% corporate income tax rate to €2 million.
HOK president Dalibor Kratohvil said the proposals were aimed at creating a more predictable and proportionate tax system for entrepreneurs. The measures remain subject to the legislative process and public consultation.
