Factsheet for case HR-2020-14/582 – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Temporary, 01 April 2020 – 30 June 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Case created||14 April 2020 (updated 30 April 2020)|
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.
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 1.500,00. 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 750.00.representative body of the local self-government unit.
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.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Local / regional government
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, the social partners were not involved.
|Economic area||Sector (NACE level 2)|
|I - Accommodation And Food Service Activities||I55 Accommodation|
This case is not occupation-specific.
Eurofound (2020), Writing off all renters' income tax liability for the second quarter 2020 in the tourism industry, case HR-2020-14/582 (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.