Background information

As part of the announced aid measures to the economy, the government has allowed renters to request a deferral of income tax lump sums for the first quarter 2020. However, the question remains what will happen to the second quarter 2020, since it is likely that there will be no tourists and therefore still no income. Renters demanded writing off tax lump sums for the second quarter 2020. The Tax Administration has announced that it is writing off all renters' income tax liability for the second quarter 2020. Otherwise, they would be required to pay lump sum tax for the second quarter by 30 June 2020. Furthermore, no write-off requests will be required or submitted.

This measure is aimed at renters who have lost their guests in the situation of a coronavirus pandemic, as well as the entire tourism sector, and therefore without income. The situation is still unknown for the summer months, but renters hope if there would not be tourists and revenues that the Tax Administration will implement the similar measure.

Content of measure

In 2019, around 600,000 beds in private rental apartment and houses have been offered to tourists. According to the current tax rules adopted, the owners pay between HRK 150 and 1,500 (€20-200) per bed in annual taxes. The amount is determined by the Assembly of the municipality. If the Assembly does not define the amount, it is paid HRK 750 (€100) per bed annually. The total amount paid to the budgets of local government units, towns and municipalities, amounted to about HRK 140 million annually.

The amount of the flat-rate tax may not be less than HRK 150,00, nor more than HRK 1,500. If the representative body does not decide on the amount of the lump-sum tax (per bed/accommodation unit in the campsite/accommodation unit in the Robinson tourism facility), the lump-sum tax is set at HRK 750 representative body of the local self-government unit.

Use of measure

Not yet known at this stage. Rough calculations show that each of about 100,000 individual owners paid to the budget HRK 1,400 (€185) a year on average.

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 Local / regional government	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

Involvement

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

Views and reactions

Social partners fully support all measures which are significant in aid to persons which are seriously exposed to the consequences of the COVID-19 pandemic.

Sectors and occupations

This case is not occupation-specific.

Sources

• 30 March 2020: Iznajmljivač stanova, soba i postelja putnicima i turistima i organizator kampova i/ili kamp-odmorišta te smještajnih jedinica u objektima za robinzonski smještaj (www.porezna-uprava.hr)
• 12 April 2020: Otpisuje se paušal svim iznajmljivačima, nije potrebno ispunjavati ni slati nikakve zahtjeve (www.novilist.hr)