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Factsheet for measure HR-2020-12/348 Updated – measures in Croatia

Use of the Forest Public Benefit Function Fee

Korištenje naknade za općekorisne funkcije šuma

Country Croatia , applies nationwide
Time period Temporary, 19 March 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Predrag Bejakovic (IJF)
Measure added 07 April 2020 (updated 08 November 2021)

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.


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).

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

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
No special funding required

Social partners

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:

  • No involvement
  • Main level of involvement: Unknown


Due to the nature of the measure, social partners were not involved.

Views and reactions

No involvement and no reactions.

Sectors and occupations

    • 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,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.