Factsheet for measure
HR-2020-12/348
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Updated
– measures in Croatia
Use of the Forest Public Benefit Function Fee
Korištenje naknade za općekorisne funkcije šuma
Background information
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.
Content of measure
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.
Updates
The following updates to this measure have been made after it came into effect.
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24 December 2020
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The postponement of payment of the mentioned fee has not been extended into 2021. The Ministry of Agriculture has issued an official notice that deadline for submission of forest public benefit function fee form for the period from 1 January to 31 December 2020, is 30 April 2021. All legal and natural persons who are profit and personal income taxpayers, and who perform a registered activity in the Republic of Croatia and earn a total annual income and receipts of more than HRK 7.5 million (€1 million) are liable to pay this fee. The fee for 2021 is paid in the amount of 0.024% of total revenue or total receipts. This is stipulated by Amendments to the Forest Act (Zakon o izmjenama Zakona o šumama - OG NN 68/18, 115/18, 98/19, 32/20, 145/20).
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Use of measure
Around 60 companies with approximately 1,200 workers are covered by this measure. Use not known yet at this stage.
Target groups
Actors and funding
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Actors
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Funding
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National government
Company / Companies
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No special funding required
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
Due to the nature of the measure, social partners were not involved.
Views and reactions
No involvement and no reactions.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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A - Agriculture, Forestry And Fishing
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A2 Forestry and logging
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This case is not occupation-specific.
Sources
