Second round of extraordinary tax measures as a reponse to covid–19

The Government of the Republic of Croatia has presented the second round of the extraordinary economic  measures on April 2nd 2020, aimed towards further mitigation of the outbreak’s negative effect on retaining employees and liquidity of entrepreneurs.

The presented measures are mostly focused on updates and extensions of the initially presented measures along with several newly introduced measures. 

Hereby we summarize the tax measures which should be adopted in the Croatian Parliament in the following days and also published in the Official Gazette.

There is a lot of information still pending regarding the scope of these measures and therefore, more details are expected through changes of the tax Rulebooks.

Also, the Tax Authority published anofficial opinion on the tax treatment of the financial aids paid by employers to employees for mitigation of a damages caused by the recent earthquake in Zagreb.