Tax Authority: Monthly student income of less than HRK 5,050 won't be taxed

All monthly student incomes amounting to less than HRK 5,050 are exempt from income taxation, the Tax Authority said on Thursday.

The Tax Authority said this in a statement on student income taxation, noting that it wanted to respond to "wrong interpretations of regulations on student income taxation in force since January 1, which have caused concern, notably in the student population."

The negative reactions from students were prompted by interpretations of new regulations on income tax, under which the amount which students may earn in the course of one year without having to pay taxes is lowered from HRK 50,000 to HRK 15,000.

The Tax Authority says in its statement that the published income tax rules cover only the most necessary regulations of the Income Tax Act while more specific regulations will be published as part of new income tax regulations that are being worked on and will be adopted 90 days from the entry into force of the Income Tax Act.

The Tax Authority recalls that under the Income Tax Act, all citizens who earn an income, including students, are entitled to a non-taxable monthly income of HRK 3,800 or HRK 45,600 annually.

"Also, students have the right to an additional annual non-taxable amount of HRK 15,000 or HRK 1,250 monthly, which, when added to the HRK 5,050, totals HRK 60,600 annually. Income tax will not be charged for student incomes amounting to less than HRK 5,050. As for the difference exceeding that monthly income, income tax and a possible municipal tax will be charged," the Tax Authority says.

 

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