COVID-19 & Your Business
Given the current circumstances caused by the spread of COVID-19 infection, the way of doing business and everyday tasks have changed in numerous companies. Many have turned to remote work to adapt to the new situation, and responsible government bodies have begun to adopt measures aimed at facilitating business through relief, deferrals, lower interest rates, etc.
Regardless of the sector, the priority is to minimize the impact of coronavirus on business. Mazars Croatia and its entire team of accounting, tax, auditing and financial consulting professionals will regularly update this page to provide all stakeholders with news on the latest changes to the law and the opportunities available to entrepreneurs.
Details of the second round of extraordinary tax measures (April 9th)
Read about changes to the General Tax Rulebook, deferral of VAT payments, exemption from payment of contributions (Croatian Employment Service’s incentives) and other news.
Second round of extraordinary tax measures
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.
WEBINAR on April 8th, 10 am
Considering the numerous inquiries of our clients, we have decided to hold a webinar that will provide an overview of the key activities that each company should focus on in order to minimize the negative impact that COVID-19 will have on many companies. In addition to useful guidelines for optimal access to business, Mazars experts with will also go through economic measures such as payment delays, job security grants, etc.
USEFUL INFORMATION ON INCENTIVES FOR PRESERVING JOBS, DEFERRAL OF TAX PAYMENTS AND WORKERS
Taking into account numerous unclearities and multiple changes in the law, we have prepared a short FAQ, at the moment available only in Croatian.
-> AT THE MOMENT, ONLY CROATIAN VERSION IS AVAILABLE - BELOW.
Extraordinary tax measures
The Government of the Republic of Croatia has made a series of proposals for economic measures with the primary objective of retaining jobs and preserving liquidity for entrepreneurs whose business activity has been reduced by the outbreak.
Incentives for preserving jobs
CROATIAN EMPLOYMENT SERVICE ("HZZ") has announced details of a newly intorduced measure for a job preservation for an activities affected by Coronavirus (COVID - 19).
Deferral of tax payments and payment of tax debt in instalments
Following last week’s adoption of the amendments to General Tax Act, which introduced the possibility of deferring tax payment and / or instalment payment of tax debt in special circumstances, amendments to the General Tax Rulebook entered into force on 24th March 2020. Through amendments to the General Tax Rulebook the following scope of the extraordinary measures has been defined: Who is able to use deferral of tax payment and / or instalment payment of tax debt, Which taxes are in scope of the mentioned measures, etc.
Business defence approach
For some businesses, the pandemic has already had a detrimental effect on cash flow which requires immediate attention; others are at a stage where it is essential to start serious contingency planning for a global economic downturn.
Economic aid measures: ESIF loans for working capital
Due to COVID-19 challenges and related economic aid measures proposed by Croatian Government, HAMAG-BICRO allowed companies to apply for an ESIF loan for working capital.
Implications on financial statements
On March 11, 2020, WHO declared a global pandemic for coronaviruses. Its subsequent identification and human-to-human spread is not considered evidence about an existing condition as at 31 December 2019 according to nternational Accounting Standard 10 Events After the Reporting Period.