Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HR-2020-12/348 – Updated – 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 Bejakovic (IJF)|
|Measure added||07 April 2020 (updated 08 November 2021)|
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.
The following updates to this measure have been made after it came into effect.
|24 December 2020||
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).
Around 60 companies with approximately 1,200 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:
Due to the nature of the measure, social partners were not involved.
No involvement and no reactions.
This case is sector-specific
|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, measure HR-2020-12/348 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2020-12_348.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.