Croatia plans to introduce tips into the fiscalization system

The Croatian Chamber of Commerce (HGK) is preparing a draft law according to which tips or gratuities would be included in the system of fiscalization of caterers, and the date of its entry into force is being discussed. The Association of Hospitality Businesses of the Croatian Chamber of Commerce announced January 30, 2023.

With the introduction of tips in the tax system, tips become non-taxable income up to a certain amount on an annual basis.

All tip income over the agreed-upon tax-free limit will be taxed as other income, in order to avoid the risk of misuse of tax-free income.

Taxation of other income is certainly a more favorable option for everyone than the current situation, according to the Association of Hospitality Businesses, adding that it is still necessary to define the annual tax-free limit.