The year 2022 brings a lot of news and changes related to tax regulations and the preparation of annual reports, starting with the deadlines for submitting reports.
This year, at the e-consultation, a proposal was made to repeal the Ordinance on deadlines for submission of financial statements and accounting documents in special circumstances, which would revert the deadlines for submission of tax and financial reports to 30.04. for statistics, and 30.06. for public disclosure, but the proposal is under consideration, so the deadlines for submitting tax and financial reports for statistical purposes and public disclosure are still uncertain at this time.
The Balance Sheet, the Statement of Other Comprehensive Income, the Statement of Cash Flows – direct method and the Statement of Changes in Equity, which were changed by amend of the Ordinance on the Structure and Content of Annual Financial Statements (OG 144/20), are no exception. In the Balance Sheet, the content of existing balance sheet items was expanded, so “land and buildings” now include “real estate rights and other similar rights”, while in liabilities, in addition to changing the name of the position “Fair value reserves and other” to ” Fair value of financial assets through other comprehensive income (ie available for sale) “, two new sub-items were added, “Other fair value reserves” and “Foreign exchange differences on translation of foreign operations”.
Another novelty is that taxpayers who generated total revenue of up to HRK 7.5 million in the tax period, ie in 2021, apply a profit tax rate of 10%, while ones who generated more than 7,5 milion HRK total revenue, apply profit tax of 18%. It is important to emphasize that aid received to mitigate the negative consequences in the event of special circumstances (“Covid aid”) is not included in the income used to determine income tax.
There also some changes in salary which is determined in the gross amount of HRK 4,687.50 from 1st January to 31st December 2022, or HRK 3,750.00 in the net amount and that doesn’t include increases in wages based on overtime work, difficult working conditions, night work and work on Sundays, holidays or any other day for which the law stipulates not to work.
February news prepared by Ines Herman, accountant.