{"id":1438,"date":"2020-03-30T11:27:39","date_gmt":"2020-03-30T11:27:39","guid":{"rendered":"https:\/\/kopun.hr\/?p=1438"},"modified":"2020-10-23T08:16:49","modified_gmt":"2020-10-23T08:16:49","slug":"financial-relief-and-grants-for-preserving-employment-in-croatia","status":"publish","type":"post","link":"https:\/\/kopun.hr\/en\/financial-relief-and-grants-for-preserving-employment-in-croatia\/","title":{"rendered":"Financial Relief And Grants For Preserving Employment In Croatia"},"content":{"rendered":"\n

The Government of Republic of Croatia brought\nmeasures to support companies during  COVID-19 epidemic in Croatia.\nThe goal of these measures is to provide incentives for preserving jobs, but\nalso to mitigate liquidity risks for those businesses whose activities were\nreduced due to the epidemic.
\nIntroduced were 63 measures, and new measures are expected on a weekly\nbasis. 
\n 
\nMain measures finalized (i.e. can be used by companies) are as follows:
\n 
\n1. Employment preserving measures<\/strong>
\n 
\na) Salary compensation in the amount of 3.250 HRK (amount of minimum nett<\/strong> wage)\n\u2013 per permanently employed employee \u2013 for full working hours (in case of\nnon-full working hours amount will be proportional). This means that Government\nis going to pay for the minimum net salary, while the Company still needs to\npay for taxes and contributions (but those can be also delayed for payment) on\nthe payroll!
\n 
\nThis measure is approved for a period of 3 months starting from March (so it\nwill include salary for March, April, May)
\nIf it will be necessary this measure could be prolonged for another period of 3\nmonths.
\nTo participate in this measure it is necessary to submit the application to the\nCroatian Employment Institute.
\n 
\nThis incentive would be available only to employers who will not terminate\nemployment contracts<\/strong>, and who are not recipients of other incentives\nprovided by Croatian Employment Service.
\n 
\nThis measure is primarily focused on the following activities:<\/p>\n\n\n\n

  1. the activity of providing\n accommodation and the preparation and serving of food and drink;<\/li>
  2. transportation and storage;<\/li>
  3. labor-intensive activities\n within the manufacturing industry – textiles, clothing, footwear, leather,\n wood and furniture;<\/li>
  4. activities that make it\n impossible to operate in accordance with the decisions of the Civil\n Protection Headquarter<\/li>
  5. other companies who can\n demonstrate the impact of special circumstances. This includes a drop in\n revenue of more than 20%.<\/li><\/ol>\n\n\n\n

     
    \nFor owners \/ co-owners \/ founders \/ board members \/ directors \/ procurators,\netc. (with the exception of micro-enterprises, which employ up to 10 employees)\nis not possible to participate in this measure.
    \nIt is not clear what happens in situations where an employee has a director’s\nfunction, which is not registered in the Commercial Register but it is expected\nthat such employees will not be able to involve in reimbursement of this\nsupport.
    \n 
    \nIt is also important that employers who are to be granted preservation support\nshould not import or hire new employees<\/strong>.
    \n 
    \nTo participate in this measure, the employer must not reduce the number\nof employees <\/strong>by more than:
    \n– 40% for micro-entrepreneurs employing up to 10 employees;
    \n– 20% for small businesses;
    \n– 15% for medium-sized enterprises;
    \n– 10% for large entrepreneurs.
    \nin the period from 20th March up to submitting the application.
    \n 
    \nThis calculation does not include the expiry of a fixed-term employment\ncontract, retirement and dismissal concealed by employee behaviour. Also, this\nsituation does not include situations of staff reduction in the period\n01.03.-20.03.2020. years.
    \nPlease note that employer may not be granted with support if there was\na decrease in a number of employees from 20.03. until the date of\nsubmitting documents.
    \n
    \nNecessary documentation for submitting request please find on this link<\/a>.
    \n 
    \n
    \n2. Tax measures<\/strong>
    \n 
    \nThe Ministry of Finance has adopted a measure for postponement of paying taxes\nsuch as:
    \n– income tax,
    \n– profit tax
    \n– contributions to the health and pension.
    \n 
    \nAny company affected by the coronavirus epidemic may submit a request to the\ntax administration for postponement of paying taxes, provided that:
    \na) does not have debts to tax administration in the amount over 200 HRK and
    \nb) has a decrease in income \/ receipts in the month preceding the month in\nwhich the request was submitted by at least 20% compared to the same month of\nthe previous year, or
    \nb)  if it makes it probable that its revenue will decrease by at least 20%\nover the same period of the previous year, starting with the month of the\nsubmission of the Request.
    \n 
    \nPostponement of paying taxes relates to personal income tax, contributions for\nhealth and pension, advances on profit tax.
    \n 
    \nDelaying of paying VAT  is only possible for companies which, in 2019, had\na value of VAT deliveries of up to HRK 7.5 million.
    \n 
    \nDelaying paying VAT is not possible for February (i.e. VAT for February that is\nobliged to be paid until 31.03.2020 still needs to be paid).
    \n 
    \nMonthly VAT taxpayers may apply a deferral of payment beginning in March and\nquarterly beginning in the first quarter (VAT forms due April 20, 2020).
    \n 
    \nAfter expiring 3 months of postponement (and additional 3 months) it will be\npossible to pay postponed tax obligation in 24 monthly installments<\/strong> without\ncalculating interests.
    \n
    \n
    \n3. Suspending parafiscal levy<\/strong>
    \n
    \nThe following payment obligations have been suspended:<\/p>\n\n\n\n