The Croatian Government has proposed additional coronavirus countermeasures to support the economy during the COVID-19 (SARS CoV-2) epidemic in Croatia. The main objective of these measures is to provide incentives for preserving jobs, but also to mitigate liquidity risks for those businesses whose activities are reduced due to the epidemic.
I. Job preserving measures
- The Government has introduced an incentive for contribution towards employer payment of net salaries in order to preserve jobs HRK 4,000 per employed employee. This amount will be paid to employers for the salaries for April and May 2020.
- The Government will bear the employer costs of compulsory social security contributions with respect to the above net amount of HRK 4,000, which amounts to approx. HRK 1,460 per employee.
- This incentive is available only to employers who will maintain employment contracts.
II. Taxes and contributions
- VAT liability will be due for payment upon collection of receivables per issued invoices. This applies to all taxpayers.
- Entrepreneurs whose 2019 turnover was less than HRK 7.5 m and have a fall in turnover of more than 50% will be free from payment of corporate profit tax, personal income tax (wage taxes) and social security contributions for the period from April to June 2020.
- Entrepreneurs whose 2019 turnover was higher than HRK 7.5m and have a fall in turnover of more than 50% will be free from payment of corporate profit tax, personal income tax (wage taxes) and social security contributions proportionally to the amount of fall in turnover for the period from April to June 2020.
III. Deadline for filing financial statements
- Deadline for filing financial statements for 2019 to FINA will be prolonged.
- Fees for submission of the financial statements to FINA will not be charged.
The proposed measures should become effective from 6th of April 2020.
Crowe Croatia services to our clients remain ongoing, and we will continue to inform regarding further developments.