NEW LEGISLATION REGARDING NON-TAXABLE PAYMENTS

New legislation regarding non-taxable payments is applicable as of September 1, 2019.

Crowe Croatia

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Domestic daily allowances

The non-taxable amount of domestic daily allowances which incurred following more than 12 hours per day have been increased from HRK 170.00 to HRK 200.00. Additionally, domestic daily allowances incurred from 8 to 12 hours per day have now been increased from HRK 85.00 to HRK 100.00.

Vacation pay, accommodation, meals and regular childcare

The following non-taxable payments to the employees have been introduced:

1) Vacation pay for employees

Up to HRK 2,500 per year

2) Flat-rate cash payment for meals of employees

Up to HRK 5,000 per year*

3) Cost of meals of employees incurred while working for employer

Up to HRK 1,000 per month*

4) Accommodation costs of employees incurred while working for employer

Up to the amount of actual expenses

5) Compensation for costs of regular childcare

Up to the amount of actual expenses
Does not include extra programs that are separately charged

*Flat-rate cash payment for meals of employees under point 2) and individual payment of receipts for meals of employees under point 3) are mutually exclusive.