NEW LEGISLATION REGARDING NON-TAXABLE PAYMENTS

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

Crowe Croatia
9/4/2019

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.