European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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-2020-15/321 Updated – measures in Croatia

Cancellation and reduction of taxes and social contributions

Oslobađanje od plaćanja i smanjivanje iznosa poreza i doprinosa

Country Croatia , applies nationwide
Time period Temporary, 07 April 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Deferral of payments or liabilities
Author Predrag Bejakovic (IJF)
Measure added 06 April 2020 (updated 08 November 2021)

Background information

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 288 of the COVID-19 EU PolicyWatch database ) and the new Ordinance on Amendments to the Ordinance on Implementation of the General Tax Law published on 8 April. (OG 43/2020).

Content of measure

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.


The following updates to this measure have been made after it came into effect.

13 March 2021

After the extension of the deadline for submission of annual financial statements for 2020, the expected harmonization of deadlines for submission of tax reports occurred. The Ordinance amending the Ordinance on the implementation of the General Tax Act (OG 26/21), which entered into force on 13 March 2021, extended the deadline for submitting the Company Income Tax Return and the accompanying forms and reports. For the tax period starting from 1 January 2020 or during the calendar year 2020, the said forms should be submitted to the Tax Administration no later than 30 June 2021. Until that date, the amount of income tax advances will not change, except at the request of the taxpayer in accordance with a special regulation on company income taxation. The extension of the deadline also applies to all other forms and reports submitted in accordance with special regulations on profit taxation and other special regulations with the Company Income Tax Return. The extension of the deadline does not apply to taxpayers for whom the selected tax period is not equal to the calendar year or for whom the obligation to file does not fall due four months after the end of the tax period.

28 May 2020

As a part of the special regulation on the company income tax, the deadline for filing the company income tax returns and the maturity date of the tax liability for 2019 have been changed. Thus, the deadline for filing a tax return has been extended to 30 June 2020, while the maturity date of the determined company income tax liability is 31 July 2020. The changed deadlines for submission and payment of public benefits also apply to all other forms and reports submitted in accordance with special regulations on corporate taxation and other special regulations with the company income tax return or for the same submission obligations due to the Tax Administration deadline, primarily the personal income tax. The changed deadlines do not apply to taxpayers whose liabilities do not fall due four months after the end of the tax period but eight or thirty days after the end of the tax period, and these are taxpayers who are required to file income tax returns: due to status changes (merger, acquisition, division), for the purpose of opening bankruptcy proceedings, for the purpose of terminating liquidation proceedings and for the purpose of terminating operations in accordance with special regulations (like termination of a company without liquidation proceedings). Furthermore, the Tax Administration issued an opinion and better explained the eligibilities for Instalment payment of deferred tax liabilities. Eligible are taxpayers who are unable to settle the deferred tax liability at maturity can request instalment payment without any interest. Instalment payment is approved in monthly instalments - maximum for 24 months. Deadline for filing of the request for instalment payment is five days from the liabilities due date. The request could be filed in one of the following ways: Instalment payment only related to due deferred tax liability, whereby the approval of the request excludes the possibility of applying for the instalment payment of the deferred tax liabilities which will be due in the future or Instalment payment for all deferred tax liabilities, booth due and not yet due in the moment of filing the request, whereby all not yet due liabilities become due and instalment payment is approved, instead of further deferral. The Tax Administration can make subsequent assessment of the facts provided in the request related to the approval of this measure. If it subsequently determines that conditions for the approval of the measure were not adequate, abolishment of the measure will be declared, whereby tax liabilities become due in line with the specific regulations.

Use of measure

Not yet known at this stage.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National 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


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

Views and reactions

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, measure HR-2020-15/321 (measures in Croatia), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


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