Tax and other regulations news
COVID-19 Notice about government payment and reporting
23.03.2020.
Regarding COVID-19 situation, we would like to briefly notify you regarding changes with the payment of state liabilities and submission deadlines.
On March 20th , 2020. Changes to General Tax Act (OG 32/20) came into force, regulating the possibility of paying taxes in special circumstances.
Special circumstances are defined by events or certain cases that cannot be predicted and which cannot be affected, which endanger the life and health of citizens, property of greater value, and are disturbing the environment, economic activities or are causing significant economic damages. In addition, it is prescribed to be used in circumstances, in which COVID 19 certainly applies, which affect the ability to settle tax liabilities, the maturity of the tax liabilities incurred and/or overdue be postponed and/or may be approved to be paid in arrears, whereby interest will not be accrued during the payment delay and/or instalment repayment period and the statute of limitations will not run.
The same Act defines that the Ministry of Finance will, within 30 days from the day of passing the law (by April 20th , 2020. at the latest), harmonize the existing Ordinance to General Tax Act.
This created the basic legal basis for postponing payment of taxes, contributions and para-fiscal levies, however, all the details are still unknown, and we are expecting them soon.
Furthermore, as appears with the annual financial statement data, these have been extended until further only for users in the budget system.
However, given the fact that professional associations and chambers repeatedly exert pressure on the authorities to extend their decision to the real sector as well, it is expected that such decision could be made, but for now, the deadlines remain unchanged.
BENKO KOTRULJIĆ ltd.
Monday, 23 March 2020
Changes in Tax accounting since January 2020
14.01.2020.
LEGISLATIVE CHANGES IN THE AREAS OF VAT, CIT AND GENERAL TAX ACT
In accordance with legislative amendments, the following changes came into force as of 1st January 2020:
Value added tax area
Extension of the application of a reduced rate of 13% to the preparation and serving of meals and
desserts in accordance with a special regulation on the catering industry, and to the services of holders
of phonogram rights
Tax exemption as defined in Article 39., paragraph 1., item b), g), h), i), l), m) and n) of the Value Added
Tax Act, is extended to all persons engaged in activities of public interest, regardless of the
organizational form of the service provider.
These are the following services:
• Health and dental care services
• Welfare services
• Educational services
• Cultural services
• Services related to child and youth protection
The threshold for applying the special taxation procedure as per collected fees has been increased from
HRK 3,000,000 to HRK 7,500,000
Modification of the Summary Application Form - form is subjoined with information on the arrangement
for moving goods
Supplies of goods within the EU - obligation to provide proof of shipment and proof of customer
taxpayer status (VIES database) introduced. Without this, it is not possible to apply exemption under
Article 41., paragraph 1., item a) of VAT act. It is recommended that both evidences are attached to the
outbound invoice for the delivery of goods to another Member State.
Income tax area
The threshold for applying the 12% corporate tax rate has been increased from HRK 3,000,000 to HRK
7,500,000. The income tax liability for 2019 is determined at the old threshold, but the advance
payments for 2020 are determined at the new threshold of HRK 7,500,000.
General tax act area
Entrepreneurs shall submit the OPZ-STAT-1 form to the Tax Administration within the deadlines for filing
income tax returns, i.e. by 30th April if the business year is the same as the calendar year.
Use of tax benefits contrary to legal purpose
Those taxpayers who obtain tax benefits by using the tax system through organizational forms taxed at
lower tax rates will be considered to use tax benefits contrary to their legal purpose.
BENKO KOTRULJIĆ ltd.
13 January 2020
DECREASE IN DISCOUNT RATE
09.05.2019.
According to a statement of the CNB Council issued on October 20th 2015, discount rate was reduced from the current 7% to 3%.
Source: www.hnb.hr
News related to Croatian joining to EU
01.07.2013.
Tax, custom and other regulations changes related to the Croatian joining to EU are mentioned in the Regulations section.
Benko Kotruljić d.o.o. will provide consulting and other full operational support to all clients and other interested parties.
Law on financial operations and pre-bankruptcy settlement
01.10.2012.
On October 1st, 2012. the Law on financial operations and pre-bankruptcy settlement came into force which obligates taxpayers heightened attention on the liquidity and solvency as well as procedures for prebankrupcty settlement if the taxpayer is in financial difficulty. The law provides mandatory deadlines for the payment of obligations, and from disregarding them prescribes penalties.
Daily allowance as per official gazette 117/2012
01.01.2012.
The official gazette Narodne Novine 117/2012 published decision on the amount per diem for official travel in the country and the level of fees for government officials, judges and other judicial officials, and other employees who are financed from the state budget, and whose rights are not covered by collective agreements, according to which height allowance in the country was reduced to HRK 150.00.
Some have been confused by the fact that the amount of per diem allowances for travel in foreign countries is determined according to the regulations on expenditures for travels for users of the state budget, so they thought this decision published in the Official Gazette No. 117/2012 applies to all.
Since the amount of allowances that can be paid tax-free to the extent of HRK 170.00 is provided by article 13, paragraph 2, item 13 of Income Tax Ordinance, which has not changed, we believe that allowance amount remains as usual, ie. HRK 170.00.
Decision on the collection of data for the purpose of compiling the balance of payments
02.01.2012.
Further to our notice in August about the new Decision of the Croatian National Bank in the field of statistics, during September the governor of the Croatian National Bank issued a new Decision.
News relate to the extension of time of delivery of some statistics forms and the introduction of new statistical patterns.
You can read more in the Official Gazette 103/2012.
Croatian national bank's decision in area of statistics
02.01.2012.
During August we expect new Decision about changes in area of statistical reporting of foreign currency affairs. Significant change relates to due date prolongation for USPB file which is prolonged for 10 days.
Law on Amendments to the General Tax Act
02.01.2012.
Law on Amendments to the General Tax Act was published in the Official Gazette No. 78/12. The consolidated text of the Act can be found on Tax Office website.
Changes to the Decree on the Manner of payment of the revenue, mandatory contributions and the income to fund other public needs in 2012. year
02.01.2012.
In the Official Gazette No. 65/12 changes to the Decree on the Manner of payment of the revenue, mandatory contributions and the income to fund other public needs in 2012. year were published. Decree text you can read on tax office web pages.
Decree on the method of payment of contributions to the salary, the salary receipts or monthly basis for calculating contributions based on employment
02.01.2012.
In the Official Gazette No. 49/12 was published the Decree on the method of payment of contributions to the salary, the salary receipts or monthly basis for calculating contributions based on employment. Decree text you can read on tax office web pages.
Law on Amendments to the Law on excise duty on passenger cars, other motor vehicles, vessels and aircraft
02.01.2012.
The Law on Amendments to the Law on excise duty on passenger cars, other motor vehicles, boats and airplanes was published in the Official Gazette No. 78/12. The Act comes into force on July 21st, 2012. You can read whole text in Official Gazette.
VAT refund from other EU member states and more than 40 countries worldwide
01.07.2013.
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