Justification of Taxation with Flat-Rate Income Tax on Real Estate Renting for Tourist Purposes in the Republic of Croatia

  • Luka Pribisalić University of Split, Faculty of Law
Keywords: taxation, income tax, flat-rate income tax, tourism, Republic of Croatia

Abstract

Income from renting apartments, rooms, and beds to travelers and tourists and organizing camps in the Republic of Croatia is taxed at a flat rate. The question is whether the taxation of this type of activity is justified if it generates more income than from renting/leasing real estate under a lease or rental agreement when these activities are taxed with a higher amount of tax from renting real estate for tourism purposes. Therefore, it is necessary to analyze why the flat-rate taxation regime for the activity of renting apartments, rooms, and beds to travelers and tourists and the organization of camps is prescribed in the Republic of Croatia and whether it is justified.

Downloads

Download data is not yet available.

Author Biography

Luka Pribisalić, University of Split, Faculty of Law

University of Split, Faculty of Law, Split, Croatia, e-mail: luka.pribisalic@pravst.hr

References

Bajo, A. (2007) Fiskalna decentralizacija. In: Ott, K. (ed.): Javne financije u Hrvatskoj, 3. promijenjeno izd., (Zagreb: Institut za javne financije).
Birk, D., Desens, M. and Tappe, H. (2015) Steuerrecht, 18. Auflage (Heidelberg: C.F. Müller).
Bratić, V. (2006) Tax Expenditures: A Theoretical Review, Financial Theory and Practice, 30 (2), p. 113-127.
Central Office of the Tax Administration, October 25th 2005 Klasa: 410-01/05-01/207, Urbroj: 513-07-21-01/05-8.
Crnjak M., Poslovni.hr, https://www.poslovni.hr/hrvatska/turizam-u-kolovozu-utrzio-petinu-vise-nego-prije-korone-4303724, accessed 16.11.2021.
Decision on the amount of the flat tax per bed, accommodation unit in the camp, and accommodation unit in the Robinson accommodation facility, Službeni glasnik Grada Dubrovnika, br. 1/19.
Decision on the amount of the flat tax for rental and accommodation activities in tourism, Službeni glasnik Grada Poreča-Parenzo, br. 1/19.
Decision on the amount of the flat tax for rental and accommodation activities in tourism, Službeni glasnik grada Rovinja-Rovingo, br. 1/19.
Decision on determining the amount of the flat tax per bed or per accommodation unit in the camp, Službeni glasnik Grada Splita, br. 3/19.
Decision on the amount of the flat tax for rental and accommodation activities in tourism (City of Zagreb), Službeni glasnik Grada Zagreba, br. 24/19.
Gadžo, S. (2015) Prilog istraživanju sadržaja načela pravednosti kao kriterija evaluacije normi međunarodnog poreznog prava, Pravni vjesnik, 31(2), p. 131-156.
Hrvatska turistička zajednica, https://www.htz.hr/hr-HR/press/objave-za-medije/u-2020-godini-ostvareno-50-posto-nocenja-od-rekordne-2019, accessed 16.11.2021.
Income Tax Act, Narodne novine br. 115/16, 106/18, 121/19, 32/20 and 138/20.
Jelčić B, Lončarić-Horvat, O., Šimović, J., Arbutina, H., Mijatović, N. (2004) Hrvatski fiskalni sustav (Zagreb: Narodne novine).
Jelčić, B., Lončarić-Horvat, O., Šimović, J., Arbutina, H., Mijatović, N. (2004) Financijsko pravo i financijska znanost (Zagreb: Narodne novine).
Jutarnji list, https://novac.jutarnji.hr/novac/aktualno/rastu-cijene-nekretnina-na-moru-gradani-upozoravaju-pitanje-je-gdje-ce-to-sve-zavrsiti-15095199, accessed 16.11.2021.
Kesner-Škreb, M. (2009) Fiskalni federalizam, Financijska teorija i praksa, 33(2), p. 237- 239.
Law on Amendments the Income Tax Act, Narodne novine, br. 106/18.
Markota, L. (2020) Oporezivanje ugostiteljskih usluga u domaćinstvu i na OPG-u – iznajmljivači građani RH, Računovodstvo, revizija i financije, 5.2019, p. 101.
Mijatović, N. (2016) Paušalno oporezivanje djelatnosti iznajmljivanja stanova, soba i postelja te organiziranja kampova, Pravo i porezi Zagreb, 7-8/2016, p. 13.
Mijatović, N. (2007) Razmatranje teorijskih pristupa osnovnim institutima uređenja oporezivanja dohotka, Revija za socijalnu politiku, 14(3-4), p. 289-311.
Miloš, M. Kuzelj, V. (2021) Ostvarenje i zaštita ustavnog ideala porezne pravednosti u svjetlu zahtjeva socijalne države, Zbornik radova Pravnog fakulteta u Splitu, 58(4), p. 1101-1120.
Ministarstvo financija, Porezna uprava,
https://www.porezna-uprava.hr/HR_porezni_sustav/Stranice/Popisi/Stope.aspx, accessed 15.11.2021.
Ordinance on renting apartments, rooms, and beds for travellers and tourists and organizing camps that will be taxed at a flat rate, on the amount of flat tax and the method of paying flat tax, Narodne novine, br. 1/17.
Ordinance on flat-rate taxation of rental and organization of accommodation in tourism, Narodne novine, br. 1/19, 1/20, 1/21.
Rogić Lugarić, T., Bogovac J. (2012) Pravni status poreznih izdataka: stanje i perspektive, Conference: Skrivena javna potrošnja: sadašnjost i budućnost poreznih izdataka, Institut za javne financije, Zagreb.
Rosen, H.S. and Gayer, T. (2010) Javne financije (Zagreb: Institut za javne financije).
Šimović, J., Arbutina, H., Mijatović, N., Rogić Lugarić, T., Cindori, S. (2010) Hrvatski fiskalni sustav (Zagreb: Narodne novine).
Tax Expenditures in the Nordic Countries (2009) A report from a Nordic working group, presented at the Nordic Tax Economist meeting in Oslo, June 2009.
The Law on Financing of Local and Regional Self-Government Units in the Republic of Croatia, Narodne novine, br. 127/17 and 138/20.
Visković, N. (2006) Teorija države i prava (Zagreb: Birotehnika).
Vranar, K. (2021) Paušalno oporezivanje stanova, soba i postelja putnicima i turistima, Financije, Pravo i porezi, 3/2021.
Vukić Z., Dnevnik.hr, https://dnevnik.hr/vijesti/hrvatska/informer-rast-cijena-nekretnina-u-zagrebu---676632.html, accessed 16.11.2021.
Vuraić, M. and Lelas, B. (2005) Paušalno oporezivanje djelatnosti iznajmljivanja stanova, soba i postelja putnicima i turistima i organiziranja kampova, Računovodstvo, revizija i financije Zagreb, 5/2005, p. 114.
Published
2022-06-22
How to Cite
Pribisalić L. (2022). Justification of Taxation with Flat-Rate Income Tax on Real Estate Renting for Tourist Purposes in the Republic of Croatia. LeXonomica, 14(1), 73-96. https://doi.org/10.18690/lexonomica.14.1.73-96.2022
Section
Articles