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Social Tax

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Key concepts

Social taxpayers

Taxable items

Tax rates Procedure of pmt of tax

Special considerations

Tax period and tax declaration

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Art. 355

The payers of social tax shall be: individual entrepreneurs private notaries, advocates resident legal persons

non-resident legal persons structural units (of resident legal persons).

Amend-s: The decision about recognition or thetermination of structural unit is introduced fromthe beginning of the quarter following afterquarter in which such decision is accepted.

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Special considerations onspecial tax regimes

Art. 356 Special considerations applied on:

Agricultural producers- Art. 451Small business entities

Simplified declaration- Art. 433-438

Patent- 429-432 Peasant farmer holdings- 445-447

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Taxable items (KEY!)Art. 357

Taxpayers Employers costs paid to Taxable items

Legal persons Resident employees in the form of income (Art.163- Employment Income)

Non-resident employees in the form of income (Art.192, p. 1, subp. 18-21)(Income of non-residents)

Foreign personnel Income (Art. 191, p. 10- Non-resident permanentestablishment)

Individualentrepreneurs

Advocates, privatenotaries

Number of employeesincluding payers themselves

If taxable item< minimum wage=> social tax

shall be minimum wage

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Not recognized as taxable

items (Art. 357, p. 3) grants given on the line of states, governments of states

and international organisations state awards, stipends money prizes which are awarded at sport competitions,

shows, contests compensation paymentspayable in termination of

employment agreements compensation paymentspayable for unused leaves

obligatory pension contributions Art. 156, p. 1, subp.-s 8, 10, 12, 17, 18, 24, 26, 27, 29-32,34. Amend-s: 24-1

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Tax rates (KEY!)

Art. 358Taxpayers Tax ratesResident legal persons

Non-resident legal persons

11%

Individual entrepreneurs

Private notaries,advocates

2-time amount of the monthly ass-t

index established+

amount of the monthly ass-t indexfor each employee

Specialized org-s withdisabled workers

4.5%

Special tax regime peasant or farmerholdings

Art. 445

20 % from the monthly assessmentindex for each employee, and alsofor the head and full-age members

simplifieddeclaration

Chapter 61, Art. 437

of the amount of tax assessed

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Procedure of tax payment

Art. 359 Social tax shall be reduced by social

ass-s calculated in acc. ConcerningObligatory Social Insurance.

IF total social ass-ts >total socialtax=> total social tax =0

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Procedure of tax paymentPayment of social tax

Art. 360 Payment shall be made

not later than on the

25th day of the monthfollowing the reportingmonth

structural units shallpay in acc with Art 362

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Procedure of tax paymentSpecial considerations

Art. 361State-owned Inst.:

Amounts for for a reporting month(Amend-s: reporting period)shall bereduced by amounts of social benefits fortemporary disability paid

IF paid social benefits > assessed socialtax=> excess carry forward for the nextmonth

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Procedure of tax paymentSpecial considerations

Art. 362Structural Units

Amounts calc. basing on social taxassessed on income of employees

Payers shall perform payment to

appropriate budgets in the place oflocation of structural units

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Tax period and tax declaration

Art.-s 363, 364 The tax period for the assessment of social tax shall be a calendar

month- Art. 363

Personal income tax and social tax declarations shall be submitted

not later than on the 15th day of the second month following thereporting quarter

Supplements to personal income tax and social tax declarationsshall be submitted with declarations for the fourth quarter of thereporting year

Payers having structural units shall submit personal income tax andsocial tax declarations in the place of location of the structuralunit

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Do not forget to paySocial Tax!