The Croatian Government introduced measures to support job preservation and mitigate the effects of the special circumstances caused by the COVID-19 epidemics
Effectively for the majority of employers this means compensation of salary costs in the amount of the minimum net salary per employee during the period of 3 months starting as of 1 March 2020.
For employers and other taxpayers whose business activities are effected by COVID 19 it is possible to submit request for postponement of the tax liabilities payments. In addition, for postponed tax payments it is possible to request an instalment payment (up to 24 months).
Industries and employers eligible for grants for preserving jobs in COVID 19 affected sectors
Eligible industries and eligible employers:
a. Employers form the following industries:
• hospitality, food and beverage,
• transportation and logistics,
• labour-intensive activities within the manufacturing industry: textiles, clothing, footwear, leather, wood and furniture,
b. employers unable to carry out their activities in accordance with the decisions of the Civil Protection Service,
c. other employers who can prove impact of special circumstances caused by COVID-19.
Eligible groups of employees:
An employer will not be granted support if there has been a decrease in the number of employees in the period from 20 March 2020 until the date of submission of the request if the percentage of employment decline is greater than:
10% large entrepreneurs.
The above does not include the expiry of a definite-term employment contract, the retirement of workers and the termination due to the employee’s misconduct.
Requirements for grant obtaining
Employers from the above mentioned industries must prove one of the following reasons (without cumulation) and sign the statement under material and criminal liability, in order to receive the grant:
Employers that by the decision of the Headquarters of Civil Protection are not allowed to perform activities have to submit the aforementioned decision.
An employer, who is having difficulty in doing business because of special circumstances submits evidence of cancellation of Contracts and Orders problems in transportation and delivery of goods or procurement of raw materials etc.
An employer which is facing a decrease of revenue is required to provide a tabular comparison of revenue by the end of the month in which the claim was filed with the same month of the previous year, with a projection of revenue in the coming period of three months, comparing the same period in the previous year. A decrease of more than 20% is acceptable.
Grant amount and period
Attorney at Law
Tel. + 385 1 5390 062
Attorney at Law
Tel. + 385 1 5390 252
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