Non-taxable receipts of employees – receipts protected from foreclosure

With the new amendments to the Enforcement Act (Law on Amendments to the Enforcement Act (Official Gazette, No. 131/20), which entered into force on 28 November 2020), there was an amendment in the part relating to receipts of employees who are under the foreclosure, and have protected accounts.

During this holiday season, the most interesting changes related to non-taxable receipts that an employee can receive on his protected account (exempt from enforcement) are:

  • non-taxable Christmas bonus up to HRK 3,000.00,
  • non-taxable monetary reward for work results up to HRK 5,000.00
  • cash lump sum fees to cover the cost of meal for employees up to HRK 5,000.00
  • non-taxable jubilee award (depending on the total length of employment HRK 1,500.00 – 4,000.00)

and previously established by law:

  • gift for children up to 15 years of age (up to HRK 600.00) and support for newborns (up to HRK 10,000.00)

From other changes related to payments to the protected account, it will be possible to pay out without enforcement:

– per diems for business trips in Croatia and abroad, per diems for field work in Croatia and abroad and per diems for business trips per diem paid to workers from the European Union budget for the performance of their jobs, and in connection with the employer’s activities up to the set amounts which are not considered taxable receipts,

– maritime allowance and maritime allowance on ships of international navigation up to the set amounts up to which they are not considered taxable receipts.

According to the previously established, these are reimbursement of travel expenses and reimbursement of transportation costs to and from work up to the set amounts up to which they are not considered taxable receipts on the basis of employment, case of death of a worker and death of a member of the immediate family of the worker, up to the set amounts up to which they are not considered taxable receipts on the basis of employment.