The Croatian government has confirmed its plans to increase the standard monthly deduction allowance from HRK 2,200 to HRK 2,600 for individual income tax. In addition, the monthly taxable income threshold for the top individual income tax rate (40%) will be increased from HRK 8,800 per month (HRK 105,600 annual) to HRK 13,200 per month (HRK 158,400 annual). The changes will be included in Croatia's September supplementary budget, and will apply from 1 January 2015.