English for Tax Administration IV

General info Lecturer: Dr. sc. Marijana Javornik Čubrić Classes: Tuesday 11:30-13:00 Office hours: Tuesday 10:00 – 11:00, Room No. 6 Contact: marijana.javornik@pravo.hr

Coursebook M. Javornik Čubrić, English for Tax Administration Study, Društveno veleučilište u Zagrebu, 2009. Units 6-9

Course outline Feb. 28 Introduction and revision of the Croatian tax system March 7 The Tax Administration March 14 The European Union March 21 Economic and Monetary Union and the Euro March 28 Taxation in the EU April 11 OLAF April 18 The European Court of Auditors April 25 The European Central Bank May 2 Cyberspace fraud and abuse May 9 Revision; sample test May 16 Mid-term examination May 23 Translation practice, student presentations May 30 Final revision and signatures

Presentations 1-3 students Duration: up to 15 minutes At least two sources (one written) Notes allowed; reading is not Draft to be sent one week in advance

Suggested topics Changes in the Croatian tax system Croatia in the EU EU today European Monetary Union Taxation in various European countries

Revision

Translate into Croatian: On January 1, 2017, Croatia woke to a new, reformed tax system which, the Government hopes, aims at ending the frequent and endless amendments and finally sets the grounds for an attractive investment environment. The Government has delivered a comprehensive reform by changing as many as 15 tax-related acts. Most of the provisions have entered into force on January 1, 2017, with certain exceptions which will take effect in 2018 or 2019.

Croatian tax system Croatian tax system includes the following taxes: Corporate income tax or ___________ Personal _________ tax Value-_______ tax Special taxes (________ duties) Real estate _______ tax Levies on the organisation of ____________

Croatian tax system includes the following taxes: Corporate income tax or profit tax Personal income tax Value-added tax Special taxes (excise duties) Real estate transfer tax Levies on the organisation of games fo chance

VAT Croatia raised standard VAT rate for ________ when it joined the EU at the start of 2013 (from ___ to ___ %)

Croatia raised VAT for 2% when it joined the EU at the start of 2013 (from 23 to 25%)

Translate the following: Another new law which came into force in 2017 was the VAT Act, which envisaged a lower, 13% VAT rate on electricity, farm seeds or child car seats, and a higher, 25% VAT rate on restaurant services.

Translate into English: Izmjenama Zakona o PDV-u nije se diralo u najnižu stopu od 5 posto, pa ona i nadalje ostaje za kruh, mlijeko, lijekove i ortopedska pomagala te knjige.

PIT PIT is paid on worldwide income in case of _____________ in Croatia. Two types of taxpayers are: _____________ and __________ PIT is based on the income earned for _________ work, _________ activities and from ___________ rights

PIT is paid on worldwide income in case of tax residency in Croatia. Two types of taxpayers are: residents and non-residents PIT is based on the income earned for paid work, independent activities and from property rights

Translate into Croatian: 25% and 40% income tax rates have been lowered to 24% and 36%, and tax brackets have been changed as well. Incomes amounting to a maximum HRK 17,500 will be taxed at the 24% rate, while incomes exceeding that amount will be taxed at 36%.

Excise duties Excise duties are paid on certain products, such as….

Oil, tobacco products, alcoholic and non-alcoholic beverages, beer, coffee, automobiles and other motor vehicles, vessels and aircraft, luxury products

Real estate transfer tax Taxpayers: Tax base: Tax rate:

Taxpayers: buyers of real property Tax base: market value of the real property Tax rate: 4% (lowered from 5%)

Translate the following terms: Izbjegavanje poreza Utaja poreza Porezna olakšica Oslobođenje od poreza Porezna obveza Porezni propisi

Izbjegavanje poreza – tax avoidance Utaja poreza – tax evasion Porezna olakšica – tax benefit Oslobođenje od poreza – tax exemption Porezna obveza – tax liability Porezni propisi – tax provisions

Complete the following: VAt taxpayer is any ________ and ___________ person (entrepreneur) delivering _______ or performing _________. Any _________ or __________ of goods is also a taxable person.

VAT taxpayer is any legal and natural person (entrepreneur) delivering goods or performing services. Any importer or exporter of goods is also a taxable person.

Thank you for your attention!