COVID-19 April support measures announced

Croatian government announced following April package of measures to assist the economy
• Employers using employment support by  CROATIAN EMPLOYMENT SERVICE to maintain jobs in coronavirus-affected sectors will be exempted from payroll taxes  (even for March)
•  For the companies suffering by ban of work, disabled or significantly impeded – total or partial exemption from payment of public charges (excluding VAT, excise duties and customs duties) due in April, May and June 2020.

 20-50% drop in revenue – payment remains as delayed as before

 More than 50% drop in revenue
on taxpayers with income up to HRK 7.5m – 100% write-off
o Taxpayers with revenues exceeding HRK 7.5 million – write-off in line with% of decline in revenue
• Postponement of VAT until payment of invoices – extension to all taxpayers and
• Deadline for submission of a set of tax forms and reports related to the final legal report (yearly final report) postponed until 6/30/2020. and other deadlines have been moved
• Instead of paying VAT immediately when issuing invoice, possibility to pay VAT once invoice has been paid   (VAT payment calculation)
• Allowed regulation of payment of VAT on donations during special circumstances (exemption)

At the moment when this article was written, this information is only announced but not published by relevant authorities.

During last few days due to Corona crisis Croatian parliament has voted for several packages of supporting measures helping companies mostly to keep employees, but also with postponement or partial (in some cases full) write-off of some taxes (not VAT). Our team is vigilantly monitoring all the measures,  and will inform our clients as soon some of the support measures is active (not only announced in newspapers), if it is relevant for our clients.

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