{"id":1523,"date":"2020-04-10T13:31:14","date_gmt":"2020-04-10T13:31:14","guid":{"rendered":"https:\/\/kopun.hr\/?p=1523"},"modified":"2020-10-23T08:20:29","modified_gmt":"2020-10-23T08:20:29","slug":"measures-introduced-to-help-businesses-manage-covid-19-implications-in-croatia","status":"publish","type":"post","link":"https:\/\/kopun.hr\/en\/measures-introduced-to-help-businesses-manage-covid-19-implications-in-croatia\/","title":{"rendered":"Measures introduced to help businesses manage COVID-19 implications in Croatia"},"content":{"rendered":"\n<p><strong>SUBMISSION OF FINANCIAL STATEMENTS &#8211; SUSPENDED DEADLINE FOR SUBMISSION<\/strong><br> <br> The amendments <em>to the Accounting Act<\/em> (OG 42\/2020 dated 7 April 2020), received an epilogue on 8 April 2020 in the form of amendments to the <em>Ordinance on deadlines for the submission of financial statements and accounting documentation under special circumstances<\/em> (OG 43\/2020 dated 8 April 2020). The amendments were initiated by numerous associations of accounting employees and accountants, who have been under considerable pressure in recent weeks to apply to various measures for their clients, to monitor numerous amendments in recent weeks and to work on the final financial statements of clients under special circumstances involving restricted movement as well as circulation of documentation.<br> <br> The Ordinance prescribes new deadlines for the duration of these special circumstances: &nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1024x538.jpg\" alt=\"\" class=\"wp-image-1533\" width=\"1024\" height=\"538\" srcset=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1024x538.jpg 1024w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-300x158.jpg 300w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-768x403.jpg 768w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p> <strong>It is also important to note that liabilities regarding public levies established on the basis of the Income Tax Return, forms and reports are due on 31 July 2020.<\/strong><br> <br> These provisions shall not apply to taxpayers whose tax period is not equated with the calendar year in accordance with a special regulation on income taxation (initiating bankruptcy, status changes, discontinuation of business, etc.), i.e. whose obligation to file an Income Tax Return is not due 4 months after the tax period expires.<\/p>\n\n\n\n<p><strong>Job preservation measures \u2013 UPDATE<\/strong><\/p>\n\n\n\n<p>On 07\nApril 2020, the <em>Croatian Employment\nService<\/em> published a third version of the job preservation measures. The\nlatest changes are the product of the last week&#8217;s announcement by the\nGovernment of the Republic of Croatia regarding the increase of the job\npreservation fee from HRK 3250 to HRK 4000, as well as a better definition of\nsituations that had remained unresolved in the previous provisions.<\/p>\n\n\n\n<p>The key\nchanges to this grant are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Employees\nof branch offices and representative offices of foreign companies in the\nRepublic of Croatia <\/strong>are defined in the group of\nworkers who can be included in the implementation of this grant. So far, this\nmeasure has focused exclusively on employees of Croatian legal entities. The\ncircle of beneficiaries of this grant has also been extended to include <strong>companies under liquidation and bankruptcy<\/strong>,\nprovided that they have employees and regularly meet their obligations;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>the grant amount for March 2020\nshall remain HRK 3250\/employee, but the fee amount for the months of April and\nMay 2020 shall be <strong>increased to HRK\n4000\/employee<\/strong> (for full-time);<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>the news is that, based on this\ngrant, the <strong>Tax Administration will make\na contribution payment (II pillar pension fund) <\/strong>of HRK 203.12 for March\n2020, i.e. HRK 250 for April and May 2020 (i.e. 5% at the converted rate for\nthe II pillar pension fund).In this manner, the fact that net salary financing\nimplies adequate payment to the employee in the II pillar pension fund is\nresolved;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Due to the fact that a part of,\nprimarily, commercial premises was closed by the Decision of the Civil\nProtection Headquarters, a part of the employers decided to terminate\nemployment contracts with traders in the initial phase. The new version of this\nmeasure states that employers may also use the measures for these employees\nwhose employment had been terminated, but have been <strong>re-employed<\/strong> (during the period from 1 March to 1 April 2020).The\nonly requirement for realizing these rights is that the employee <strong>had not exercise their right to\nunemployment benefits during unemployment<\/strong>. In the event that an employee\nhad received unemployment benefits for March 2020, the employer is entitled to\ncash compensation for this employee for April and May 2020;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>The <strong>deadlines for the submission of a grant application <\/strong>by an\nenterprise have been defined, namely:<ul><li>for\nthe payment of salary costs for April and May &#8211; deadline 5 May 2020;<\/li><\/ul><ul><li>for\nthe payment of salary costs for May &#8211; deadline 7 July 2020.<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>In principle, compensation\ncannot be obtained for owners co-owners, founders, board members, directors and\nprocurators, except in the situation of micro enterprises (i.e. enterprises\nemploying fewer than 10 workers).The latest version states that grants cannot\nbe approved for a co-owner &#8211; natural entity in relation to these micro\nenterprises cannot be granted, if they have more than a 25% share in another\nlegal entity.<\/li><\/ul>\n\n\n\n<p>Link to\nthe latest text of the COVID 19 job preservation measures: <a href=\"https:\/\/mjera-orm.hzz.hr\/media\/avch5x45\/hzz-provedbena-dokumentacija-potpora-za-ocuvanje-radnih-mjesta-koronavirus-060420.pdf\">https:\/\/mjera-orm.hzz.hr\/media\/avch5x45\/hzz-provedbena-dokumentacija-potpora-za-ocuvanje-radnih-mjesta-koronavirus-060420.pdf<\/a><\/p>\n\n\n\n<p><strong>Deferral and exemption from tax levies<\/strong><\/p>\n\n\n\n<p>Following\nthe amendments to the <em>General Tax Act<\/em> (OG 42\/2020 dated 7 April 2020)\nadopted yesterday, the Amendments to the <em>Ordinance on the Implementation of\nthe General Tax Act <\/em>were also published on 8 April 2020 (OG 43\/2020 dated 8\nApril 2020). These amendments are complementary to the first set of measures of\nthe Government of the Republic of Croatia, i.e. the published amendments to the\n<em>Ordinance on the Implementation of the General Tax Act <\/em>(OG 35\/2020 dated\n19 March 2020).<\/p>\n\n\n\n<p>When\nsummarizing these provisions, we can conclude that the measures can be divided\ninto two key areas:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>deferral of tax levies;<\/li><li>exemption from tax levies.<\/li><\/ol>\n\n\n\n<p>A recapitulation of the new and previously adopted measures is given below:<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1-637x1024.jpg\" alt=\"\" class=\"wp-image-1530\" width=\"637\" height=\"1024\" srcset=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1-637x1024.jpg 637w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1-186x300.jpg 186w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1-768x1236.jpg 768w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-1.jpg 800w\" sizes=\"auto, (max-width: 637px) 100vw, 637px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-2-637x1024.jpg\" alt=\"\" class=\"wp-image-1527\" width=\"637\" height=\"1024\" srcset=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-2-637x1024.jpg 637w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-2-186x300.jpg 186w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-2-768x1236.jpg 768w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-2.jpg 800w\" sizes=\"auto, (max-width: 637px) 100vw, 637px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:20%\">\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-3-318x1024.jpg\" alt=\"\" class=\"wp-image-1524\" width=\"318\" height=\"1024\" srcset=\"https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-3-318x1024.jpg 318w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-3-93x300.jpg 93w, https:\/\/kopun.hr\/wp-content\/uploads\/2020\/04\/Measures-introduced-to-help-businesses-manage-COVID-19-3.jpg 400w\" sizes=\"auto, (max-width: 318px) 100vw, 318px\" \/><\/figure><\/div>\n<\/div>\n<\/div>\n\n\n\n<p>We\nwould like to draw your attention to the fact that the provisions of the\nOrdinance also define the possibility of <strong>subsequent\ncontrol by the tax authority<\/strong>, and that the Tax Administration can\nabolish the deferral of payment of tax levies followed by a calculation of\ndefault interest on late payments of tax liabilities in certain situations.\nThis applies if the enterprises:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>present\nfalse facts in reasoning their applications;<\/li><li>act\ncontrary to tax regulations;<\/li><li>misuse\nthe tax payment measures to obtain unlawful material gain.<\/li><\/ul>\n\n\n\n<p>Among\nother provisions, it is important to state that all deliveries, in the period\nfrom 1 April 2020 to 1 July 2020, related to procurement of equipment necessary\nfor the fight against the COVID 19 pandemic from donations will be exempt from\nVAT .The above-mentioned complies with the measures in other countries, which\ntemporarily exempted from VAT all procurement of goods financed from donations\nduring the fight against the pandemic. The situation is identical with VAT when\nimporting goods needed for the fight against COVID 19.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SUBMISSION OF FINANCIAL STATEMENTS &#8211; SUSPENDED DEADLINE FOR SUBMISSION The amendments to the Accounting Act (OG 42\/2020 dated 7 April 2020), received an epilogue on 8 April 2020 in the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3408,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[19,20,11],"tags":[],"class_list":{"0":"post-1523","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-covid-19-coronavirus","8":"category-covid-19-coronavirus-en","9":"category-knowledge-base"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.0 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Measures introduced to help businesses manage COVID-19 implications in Croatia - 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