Factsheet for case HR-2020-15/321 – Updated – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Temporary, 07 April 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Deferral of payments or liabilities
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Case created||06 April 2020 (updated 06 October 2020)|
On 17 March 2020, the Government of the Republic of Croatia adopted a conclusion presenting 63 economic measures aimed at boosting job retention, but also addressing illiquidity to those whose business activity has declined due to the coronavirus epidemic. The measures can be divided into two main groups. The first set of measures are measures that are horizontal in nature and are aimed at maintaining the stability of the economy through the provision of stand-style arrangements and new liquidity. The second set of measures refers to sectoral measures that are both vertically and horizontally targeted with the aim of encouraging everyone to actively undertake activities aimed at preserving jobs, i.e. safeguarding employment. In this regard, 16 laws have been amended. Additional amendments to the General tax law have been adopted on 7 April (OG 42/2020) ( see case number 288) and the new Ordinance on Amendments to the Ordinance on Implementation of the General Tax Law published on 8 April. (OG 43/2020).
The Government decided on 7 April 2020 that for companies with a revenue of up to HRK 7.5 million (€ 1 million) and have a revenue drop of more than 50%, taxes and contributions will be completely written off over the next three months. For companies that have revenue of more than HRK 7.5 million (€ 1 million) and have a revenue drop of more than 50 -100%, taxes and social contributions will be proportionally written off over the next three months.
Therefore, if a company has a revenue drop of 75%, it will pay 25% of taxes and contributions over the next three months. The companies that generate more than HRK 7.5 million (€ 1 million), the 7% of big companies, will be exempt from their tax liabilities in proportion to the decrease in their revenue in April, May, and July. If their revenue has decreased by 20% to 50%, they are entitled to a deferral and interest-free payment in installments, those whose revenue has decreased by 50% to 100% will pay proportionately, and if their revenue has decreased by 75%, they will only pay 25% of their tax liabilities.
Not yet known at this stage.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
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.
Due to the nature of the measure, social partners were not involved. However, social partners are fully aware of all problems related to COVID-19 and fully support any measure that contributes to lessening the adverse effects of the crisis.
Eurofound (2020), Cancellation and reduction of taxes and social contributions , case HR-2020-15/321 (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.