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Government of the Republic of Croatia has announced the following economic measures related to the Coronavirus epidemic - Part II

COVID-19 | Economic aid measures

tax News, April 2020

On session held on 2 April 2020, Government of the Republic of Croatia has announced the following economic measures related to the Coronavirus epidemic (it is important to emphasize that details will be published subsequently in bylaws):
  • Amount of the aid related to Coronavirus epidemic from the Croatian Employment Agency for preservation of the employment is increased and amounts to HRK 4,000 for April and May 2020
  • Employers which benefit from the aid of the Croatian Employment Agency will be exempt from obligatory contributions related to these salaries.
  • All taxpayers whose businesses are suspended or distressed will be completely or partially exempt from payment of public charges which are due during April, May and June 2020
  • Payment of VAT can be postponed until issued invoices are settled
  • Deadline for submission of the tax returns, forms and reports related to the annual reporting will be postponed (as announced, to 30 June 2020) – possibility of postponement of other deadlines during the epidemic is prescribed
  • Instead of payment of import VAT, declaring the liability in the VAT return can be prescribed – no actual payment
  • Regulation of VAT liability related to donations during the special circumstances is enabled
  • The proposed amendments to the Accounting Act will enable the Minister of Finance to prescribe, i.e. extend, the deadlines for:
    •  submission of an individual and consolidated non-financial report, 
    • submission to the Financial Agency individual and consolidated annual financial reports with the accompanying audit report for the public disclosure, 
    • submission of statement of inactivity,
    • submission of financial information for statistical and other purposes, an

      The due dates will be prescribed by the implementing regulations and we will inform you once they are published in the Official Gazette.

      Additionally, it is proposed to permanently relieve the entrepreneurs from payment of Financial Agency fee for the publication of the annual financial statements.
  • Special measures proposed for agriculture and tourism sectors.
      

On session held on 2 April 2020, Government of the Republic of Croatia has announced the following proposals of the decisions related to loans:
  • MICRO AND SMALL LOANS FOR RURAL DEVELOPMENT
    •  More favorable interest rates for micro and small loans for rural development
    • Interest rates lowered from 0.5 - 1.0% to 0.1% - 0.25%
  • NEW MICRO LOAN FOR RURAL DEVELOPMENT FOR WORKING CAPITAL
    • A new instrument for working capital for rural development with an interest rate of 0.5%
    • Target group: Micro and small business entities, subject to the conditions prescribed by the EAFRD measures eligible for funding under this instrument
    • Amount of loan: From 1,000 euros to 25,000 euros in HRK equivalent at the CNB middle exchange rate on the date of application
    • Purpose of the loan: Working capital
    • Minimum repayment period: 12 months
    • Maximum repayment period: 3 years
    • Interest rate: 0.5%
    • Request processing fee: 0%
    • Grace period: Up to 12 months if the repayment period is at least 2 years
    • Collateral: Promissory note, other security instruments risk assessment
  • COVID-19 LOAN FOR WORKING CAPITAL
    • New program to provide additional liquidity to micro, small and medium-sized businesses affected by the COVID-19 pandemic. A prerequisite for entrepreneurs to be able to use this instrument is a 20% decline in revenue in the first quarter, or a forecast in the coming quarters. It is important to note that these funds will not be able to be used to refinance existing loan commitments or to pay off commitments made before 2020
    • Target group: Micro, small and medium-sized small business entities
    • Loan amount: Up to HRK 750,000.00
    • Purpose of the loan: Working capital
    • Maximum repayment period: Up to 5 years including grace period
    • Interest rate: 0.25%
    • Request processing fee: 0%
    • Duration: Up to 6 months
    •  Grace period: Up to 12 months if the repayment period is at least 2 years
    •  Collateral: Promissory note

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