Croatia Tax Agency Clarifies Real Estate Transfer Tax for Merging Institutions

The Croatian Tax Administration April 24 clarified real estate transfer tax for merging institutions. The taxpayer sought clarification on whether a specific real estate transfer tax exemption applied if real estate were acquired in the process of merging institutions. The Tax Administration clarified that: 1) the exemption at issue applies when real estate is acquired in the process of mergers and acquisitions in accordance with the Companies Act, and when a company is divided into several companies; 2) if upon audit, however, the Tax Agency determines that the real estate was acquired based on the appearance of a legal transaction, ...