• HRK 3,250 for March 2020
• HRK 4,000 for April and May 2020
• HRK 4,000 for June 2020

At this time, the government has not announced grants nor criteria for job preservation for the period after 30 June 2020.

• Employers who received the grant in previous months, and employers who are applying for the first time for the grant for May, must prove that they had a decrease in revenue of at least 20% compared to May 2019.
  Proof: submission of VAT forms for May 2019 and May 2020 to the Tax Authority (entrepreneurs who are not VAT registered should enclose a revenue decrease table).
• Employers who are in business for fewer than 12 months must prove a decrease in revenue of at least 20% compared to February 2020.
  Proof: submission of VAT form for February 2020 and May 2020.

The criteria remain the same for employers with fewer than 50 employees.

Applications received during 8 May and 7 June 2020 for the grant for the month of May, if approved, the payout will be made by 15 June or later once all VAT and other statutorily required documents will have been submitted.

• Applications can be submitted by employers from prescribed sectors in which activity has been severely impacted or closed due to COVID 19. Sectors are as follows:
  - agriculture, forestry and fishing – only crop and animal production, hunting and related services, and fishing;
  - transport and storage – primarily passenger transport (by rail, land, air and water);
  - accommodation services, and food and drink preparation and service;
  - administrative and auxiliary services industry – only industries of renting and leasing and travel agencies, travel organizers and other reservation services and related services;
  - arts, entertainment and recreation – only creative, artistic and entertainment services, entertainment and recreational services and manufacturing and film screening, sound recording, and distribution of the same;
  - other service industries – only computer repair and household and personal items repair and other personal services;
  - organizers of cultural, business and sporting events, fairs and wedding organizers, and supporting services such as companies for equipment rental, audio and video recording, ticket sales, hall rental and other companies that realize that majority of revenue from events and public gatherings.
• Eligible employers: companies, trades, OPG and individuals with registered self-activity.
• Criteria: decrease in revenue by at least 50% compared to May 2019.
• Proof: VAT form for May 2019 and May 2020. For employers who have been in business for fewer than 12 months, proof is VAT form for February 2020 and May 2020 (or table showing the decrease in revenue for employers who are not VAT registered)
• Applications to be submitted from 8 June to 30 June 2020.
• Applications can be submitted for employees who were employed on 19 March 2020 onwards.
• Applications will be rejected for employers who have not made April salary payments.
• Maximum value of grant: HRK 4,000 for full time employees; proportional value for shortened working hours.

Limitations for the use of grants for May and June

1. Pay dividends or a share in profit or make other equivalent payments deemed as distribution of profit from any tax period;
2. Award shares or shares in profit to management board members and/or executive directors and/or procurists and or/other individuals who are responsible for managing the company or its part;
3. Award stock option rights to the persons listed above, or any other right based on the company’s share value;
4. Pay the following income to the persons listed in point 2 above: bonus for achieved results, bonus for achieving the business results above the non-taxable value prescribed by the personal income tax regulations and other similar income taxed as the employment income or other income, in accordance with the personal income tax regulations;
5. Acquire treasury shares or company shares.

Paul Suchar
Partner
Tel. +385 1 5390 032
psuchar@kpmg.com

Maja Maksimović
Director
Tel. +385 1 5390 147
mmaksimovic@kpmg.com

Tomislav Borošak
Director
Tel. +385 1 5390 171
tborosak@kpmg.com

Kristina Grbavac
Director
Tel. +385 1 5390 069
kgrbavac@kpmg.com

Petra Megla
Director
Tel. +385 1 5390 077
pmegla@kpmg.com

KPMG Croatia d.o.o
EUROTOWER, Ivana Lučića 2A/17
Tel: +385 (0)1 5390 000
Fax: +385 (0)1 5390 111
info@kpmg.hr
home.kpmg/hr