Factsheet for case HR-2020-12/348 – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Temporary, 19 March 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Case created||07 April 2020 (updated 30 April 2020)|
According to the Law on Forests (OG 68/18, 115/18, 98/19), payers of contributions for common forest functions are legal and natural persons who are taxpayers of company income tax and natural persons who are taxpayers of personal income tax who carry out their registered activity in the Republic of Croatia and have a total annual income and income exceeding HRK 3 million (€ 400,000). Due to the decrease revenues of mandatory payers of contributions for common forest functions, the government proposed different use of mentioned fee in the Law on Amendments to the Forest Act published in the Official Gazette no. 32/20. According to new article (Article 68a) funds for compensation for common forest functions can be used to eliminate or mitigate the consequences caused by special circumstances or events or a certain condition that could not be predicted and could not be affected, which threatens the life and health of citizens, property higher values, significantly disrupts the environment, disrupts economic activity or causes significant economic damage.
The Forest Public Benefit Function Fee is paid by companies and other business associations once a year. Initially the charge was collected by the State-owned company Hrvatske Šume ( Croatian Forests) at a rate of 0.0265% of total income. Currently, around 0.03% of the total income charge is managed by the Ministry of Agriculture and Forestry and distributed to the beneficiaries. Amendments to the Law on Forests (OG 32/20) broadens the purpose of the Forest Public Benefit Function Fee. In the case of special circumstances, these funds may be used to eliminate or mitigate the consequences of special circumstances, as decided by the Minister responsible for agriculture and forestry.
Around 60 companies with approximately 1200 workers are covered by this measure. Use not known yet at this stage.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Company / Companies
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
|Economic area||Sector (NACE level 2)|
|A - Agriculture, Forestry And Fishing||A2 Forestry and logging|
This case is not occupation-specific.
Eurofound (2020), Use of the Forest Public Benefit Function Fee , case HR-2020-12/348 (measures in Croatia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.