Forvis Mazars Central and Eastern European tax guide 2024

The Hungarian office of Forvis Mazars published for the twelfth time its regional tax guide, which presents snapshots and comparative charts of the tax systems of 25 CEE countries for 2024.

This guide, which has grown from covering 15 countries in 2013 to 25 in 2024, delves into a broad spectrum of tax issues, focusing on corporate income taxation, transfer pricing, employment, and sales taxes.

The 2024 guide offers a detailed analysis of tax regimes across a range of countries including Central and South-Eastern Europe, Germany, Austria, Moldova, Ukraine, the Baltic States, and for the 2nd time, Central Asian countries such as Kazakhstan, Kyrgyzstan, and Uzbekistan.

In the first section, the tax systems of the CEE region are presented country-by-country, based on data provided by the relevant Forvis Mazars offices. The end of this guide contains summary tables that allow side-by-side comparisons of the relevant tax environments.

The primary aim of the publication is to allow for comparisons to be made between the fundamental factors of competitiveness in the region.

Key findings:

The corporate income tax burden in the Republic of Croatia aligns closely with the CEE region average, featuring a standard applicable rate of 18%. However, it is important to highlight that Croatian tax legislation offers a reduced tax rate of 10% for smaller taxpayers whose revenues do not exceed EUR 1 million in the tax period.
Effective October 12, 2023, there is no longer an obligation to pay withholding tax on market research services, tax and business consulting, and auditing services. However, this exemption does not apply to services provided by entities located in EU non-cooperative jurisdictions.
In the Republic of Croatia, the interest rate on loans between related parties, which is deemed to be in line with arm’s length principle according to the safe harbor rule, is typically published at the end of the fiscal year for the subsequent year. In December 2023, a new Decision was issued, establishing an interest rate of 3,25% for the year 2024.
In accordance with recent announcements, the tax rates of 20% and 30%, along with the surtax on income, which are set to be abolished in 2024, will be replaced. Local and regional self-government units now have the authority to establish local tax rates, albeit within the range specified by the Government. The prescribed lower rate range spans from 15% to 23,60%, while the higher rate range varies between 25% and 35,40%, depending on whether the monthly tax base exceeds 4,200 EUR. Additionally, it is worth noting that Croatian tax regulations encompass numerous non-taxable receipts.
The Global Minimum Tax Act is in force as of 31 December 2023 in Croatia and its provisions are fully in line with the provisions of the Council Directive.

We hope and trust that our readers will find this summary useful and inspiring. We also included the contact information for Forvis Mazars offices and experts.

Download the guide and a brief press release by clicking the link below.

Forvis Mazars CEE Tax Guide 2024- pdf version

Please visit the interactive online platform of the Forvis Mazars CEE Tax Guide 2024:

Forvis Mazars Central and Eastern European Tax Guide 2024- online tool