Revenue Administration Modernization Project

Abstract*

The objective of the Revenue Administration Modernization Project in Croatia is to achieve further improvements in efficiency, taxpayer services, and tax compliance through capacity-building and systems improvement in the Croatian Tax Administration (CTA). This will be accomplished by supporting the implementation of the CTA strategic plan for tax modernization and subsequent incremental refinements over the next five years. The project would have... Show More

Development Objective

The development objective of the Project is to achieve further improvements in efficiency, taxpayer services, and tax compliance through capacity building and systems improvement in the Croatian Tax Administration (CTA). This will be accomplished by supporting the development of a strategic plan for tax modernization and assisting in its implementation over the next five years. This investment will move the tax administration closer toward harmonization of its policies and operations with EU accession expectations.

Key Details

Project Details

Project ID
P102778
Status
Closed
Team Leader
Ismail Radwan , Alberto Leyton
Borrower 2
N/A

Country
Croatia
Disclosure Date
March 27, 2007
Approval Date
(as of board presentation)
June 28, 2007
Effective Date
December 21, 2007

Total Project Cost 1
US$ 126.10 million
Implementing Agency
Croatian Tax Administration
Region
Europe and Central Asia
Fiscal Year 3
2007

Commitment Amount
US$ 68.00 million
Environmental Category
B
Environmental and Social Risk
Not Applicable
Closing Date
June 30, 2015

Last Stage Reached
BANK APPROVED
Last Update Date
December 16, 2016

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Economic Policy

FY17 - Fiscal Policy25%
- FY17 - Tax policy25%

FY17 - Private Sector Development

FY17 - Regional Integration25%

FY17 - Public Sector Management

FY17 - Public Administration25%
- FY17 - Administrative and Civil Service Reform25%
FY17 - Public Finance Management25%
- FY17 - Domestic Revenue Administration25%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
International Bank for Reconstruction and Development	68.00
Borrower/Recipient	58.10

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	68.00
IDA Commitment	N/A
IBRD + IDA Commitment	68.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	126.10

Summary Status of World Bank Financing (US$ Millions) as of June 30, 2025

No data available.

Detailed Financial Activity as of June 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
May 1, 2017	IBRD-74710	Int Charges	2,121.20
Nov 1, 2016	IBRD-74710	Int Charges	4,352.33
Oct 19, 2015	IBRD-74710	Loan Disb	-1,140,203.40
Nov 1, 2015	IBRD-74710	Int Charges	15,291.97
Nov 1, 2015	IBRD-74710	Int Charges	16,602.75
Nov 1, 2015	IBRD-74710	Loan Repay	730,792.60
Oct 31, 2015	IBRD-74710	Loan Cancel	13,242,174.00
Nov 1, 2016	IBRD-74710	Loan Repay	645,228.56
May 1, 2014	IBRD-74710	Int Charges	20,552.54
May 1, 2014	IBRD-74710	Int Charges	40,315.03
May 1, 2014	IBRD-74710	Loan Repay	888,241.94
May 1, 2015	IBRD-74710	Int Charges	91.48
May 1, 2015	IBRD-74710	Int Charges	160.84
May 1, 2015	IBRD-74710	Int Charges	15,400.80
May 1, 2015	IBRD-74710	Int Charges	23,695.41
May 1, 2015	IBRD-74710	Loan Repay	748,192.50
Nov 1, 2014	IBRD-74710	Int Charges	17,945.95
Nov 1, 2014	IBRD-74710	Int Charges	44,767.65
Nov 1, 2014	IBRD-74710	Loan Repay	805,150.25
Sep 29, 2014	IBRD-74710	Loan Disb	455,768.06
Aug 1, 2013	IBRD-74710	Loan Disb	1,826,526.00
Nov 1, 2013	IBRD-74710	Int Charges	610.15
Nov 1, 2013	IBRD-74710	Int Charges	750.88
Nov 1, 2013	IBRD-74710	Int Charges	24,373.00
Nov 1, 2013	IBRD-74710	Int Charges	28,342.14
Nov 1, 2013	IBRD-74710	Loan Repay	693,837.25
Dec 18, 2013	IBRD-74710	Loan Disb	2,974,934.00
Jun 28, 2007	IBRD-74710	Loan Commitment	68,000,000.00
Nov 1, 2021	IBRD-74710	Loan Repay	678,812.80
May 1, 2022	IBRD-74710	Loan Repay	618,354.06
Nov 1, 2020	IBRD-74710	Int Charges	2,658.41
Nov 1, 2020	IBRD-74710	Loan Repay	684,767.06
May 1, 2021	IBRD-74710	Loan Repay	708,642.70
May 1, 2019	IBRD-74710	Loan Repay	659,190.25
Nov 1, 2019	IBRD-74710	Loan Repay	653,969.25
May 1, 2020	IBRD-74710	Loan Repay	644,231.30
Nov 1, 2017	IBRD-74710	Int Charges	348.97
Nov 1, 2017	IBRD-74710	Loan Repay	682,889.90
Nov 1, 2018	IBRD-74710	Loan Repay	667,080.30
May 1, 2018	IBRD-74710	Loan Repay	705,768.25
May 1, 2016	IBRD-74710	Int Charges	-281.83
May 1, 2016	IBRD-74710	Int Charges	187.89
May 1, 2016	IBRD-74710	Int Charges	93.94
May 1, 2016	IBRD-74710	Int Charges	102.21
May 1, 2016	IBRD-74710	Int Charges	30.45
May 1, 2016	IBRD-74710	Int Charges	11,737.91
May 1, 2016	IBRD-74710	Loan Repay	668,605.56
May 1, 2017	IBRD-74710	Loan Repay	639,362.30

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Counterpart Funding	Satisfactory	2015-05-13
Progress towards achievement of PDO	Moderately Unsatisfactory	2015-05-13
Procurement	Moderately Satisfactory	2015-05-13
Overall Implementation Progress (IP)	Moderately Unsatisfactory	2015-05-13
Financial Management	Satisfactory	2015-05-13
Project Management	Moderately Unsatisfactory	2015-05-13
Monitoring and Evaluation	Moderately Satisfactory	2015-05-13

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 03-26-2018
Outcomes
Risk to Development Outcome	Substantial
Bank Performance
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 07-27-2020	PROJECT PERFORMANCE ASSESSMENT REPORT: 06-27-2018
Outcome Rating	Moderately Unsatisfactory	Moderately Unsatisfactory
Risk To Development Outcome	Negligible	Negligible
Bank Performance	Moderately Unsatisfactory	Moderately Unsatisfactory
Borrower Performance	Moderately Unsatisfactory	Moderately Unsatisfactory
Government Performance	Not Rated	Moderately Unsatisfactory
Implementing Agency	Unsatisfactory	Moderately Unsatisfactory
Icr Quality	Not Rated	Substantial
M&e Quality	Negligible	Negligible

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Decrease in taxpayer compliance costs, as assessed by taxpayer surveys. Value 2.7 3,19 At least 5% improvement.
Date December 31, 2008 February 28, 2015 June 30, 2015
Comment
Perception of taxpayers regarding the quality of service provided by CTA, as measured by periodic surveys Value 2.66 3.19 At least 5% improvement.
Date December 31, 2010 February 28, 2015 June 30, 2015
Comment

Perception of tax officers regarding the terms of employment and working environment, as measured by periodic surveys.	Value	3,05 (out of 5-the highest 5)	3.14	At least 10% improvement.
	Date	December 31, 2010	February 28, 2015	June 30, 2015
	Comment

Decrease in taxpayer compliance costs, as assessed by taxpayer surveys. (Annual tax compliance average cost for legal entities)	Value	14,495 kn	11,977 Kn	13,770.25 kn
	Date	December 31, 2010	February 28, 2015	June 30, 2015
	Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

(IRI 2) Ratio of staff in inspections functions as a percentage of total staff in Zagreb Region, Local Offices, plus LTO	Value	57%	49%	61%-LTO was reorganized since January 2015
	Date	December 31, 2012	February 28, 2015	June 30, 2015
	Comment

(IRI 5) Annual average assessments per inspector increased	Value	348,075 EUR	1) 348,707 EUR (all) 2) 1.050,194 EUR (LTO)3) 26	At least 5% imoprovement
	Date	December 21, 2007	February 28, 2015	June 30, 2015
	Comment

(IRI 6) Percent of total declarations by legal entities filed electronically increased Value 3.0% 99.20% (VAT) 90.0%
Date December 21, 2007 February 28, 2015 June 30, 2015
Comment

A Pilot LTO in Zagreb that would report directly to the head of the CTA established	Value	No genuin National LTO exists	A full-fledged national level LTO is in operation	A full-fledged national level LTO with the CRMS im
	Date	November 30, 2011	February 28, 2015	June 30, 2015
	Comment

Training per CTA staff (including distance learning) Value 8 hours 21,97 hours 18,75 hours
Date December 31, 2011 February 28, 2015 June 30, 2015
Comment
Stop filers of the medium and small taxpayer segments Value 2.81 4.46 2.00
Date December 31, 2011 December 31, 2013 June 30, 2015
Comment
E-learning modules developed and implemented Value 2.00 5.00 10.00
Date June 30, 2013 February 28, 2015 June 30, 2015
Comment
VAT Value 2.81 4.46 2.00
Date December 31, 2011 December 31, 2013 December 31, 2014
Comment
CIT Value 4.44 4.33 2.00
Date December 31, 2011 December 31, 2012 December 31, 2014
Comment
PIT Value 3.68 3.81 2.00
Date December 31, 2011 December 31, 2012 December 31, 2014
Comment

Decrease in taxpayer compliance costs, as assessed by taxpayer surveys.	Value	2.7	3,19	At least 5% improvement.
	Date	December 31, 2008	February 28, 2015	June 30, 2015
	Comment

Perception of taxpayers regarding the quality of service provided by CTA, as measured by periodic surveys	Value	2.66	3.19	At least 5% improvement.
	Date	December 31, 2010	February 28, 2015	June 30, 2015
	Comment

(IRI 6) Percent of total declarations by legal entities filed electronically increased	Value	3.0%	99.20% (VAT)	90.0%
	Date	December 21, 2007	February 28, 2015	June 30, 2015
	Comment

Training per CTA staff (including distance learning)	Value	8 hours	21,97 hours	18,75 hours
	Date	December 31, 2011	February 28, 2015	June 30, 2015
	Comment

Stop filers of the medium and small taxpayer segments	Value	2.81	4.46	2.00
	Date	December 31, 2011	December 31, 2013	June 30, 2015
	Comment

CIT	Value	4.44	4.33	2.00
	Date	December 31, 2011	December 31, 2012	December 31, 2014
	Comment

PIT	Value	3.68	3.81	2.00
	Date	December 31, 2011	December 31, 2012	December 31, 2014
	Comment