Croatia: Tax relief measures, second set (COVID-19)

Croatia: Tax relief measures, second set (COVID-19)

The Croatian government on 2 April 2020 proposed a second set of tax relief measures to address the economic effects of the coronavirus (COVID-19) pandemic.

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The measures are pending parliamentary procedures prior to final confirmation. While there could be changes made during this process, tax professionals do not expect there would be substantial amendments made during the parliamentary process.

Among the proposed tax relief measures are the following:

  • Employers using a grant provided to support job preservation would be exempt from paying contributions on supported net salaries 
  • Deferral of the requirement to remit value added tax (VAT) until invoices are settled
  • Taxpayers with business activities that are banned, disabled or significantly impeded could be fully or partially exempted from paying their tax obligations due in April, May, and June 2020
  • Authority granted to the Ministry of Finance to issue regulations to postpone reporting and payment deadlines for all taxes

Other measures would delay the deadline for submitting the 2019 financial statements to 30 June 2020, and would repeal a requirement to pay a fee for publication of the annual financial statements for the year 2019.

Read an April 2020 report prepared by the KPMG member firm in Croatia

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