According to the latest amendments to the General Tax Regulations effective from 20th October 2020, the cost of vaccination against infectious diseases paid by the employer on behalf of employees is not considered as taxable income of the employee, provided the vaccination is done by 31st December 2020.
Employment retention incentives
In order to retain employment within industries affected by the Coronavirus epidemic (COVID-19) provisions regarding employment retention incentives issued by the Croatian Employment Bureau for the period from October to December 2020 have been amended.
Overview of available employment retention incentives and conditions for their application:
1. Employment retention incentive for specific business sectors and microentrepreneurs
A) For sectoral employers
B) For microentrepreneurs (regardless of sector/ business activity)
Active longer than one year
Active less than one year
Employers who received incentives for 50 or more employees must repay incentives if in the period from the incentive receipt until 31 December 2021:
2. Employment retention incentive for employers whose business activities are suspended or limited based on decision of the Civil Protection Board
Suspended for a period longer than 15 days:
Suspended for a period from 1 to 14 days:
A) For employers whose business activities are suspended
B) For employers whose business activities are limited
Revenue drop (based on VAT forms or financial projections):
3. Employment retention incentive - shortened working hours
Employers with 10 or more employees.
Employers who received incentives must repay incentives if in the period from the incentive receipt until 31 December 2021: