Relief for charter activity – for 2020 the census of at least 7% of the purchase value of the vessel is not applied when calculating the tax base

The Tax Law and the Profit Tax Ordinance contain the prescribed provisions on the realization of a minimum of 7% of the purchase value of a vessel in that case the costs of the vessel to be tax deductible. Because of the efforts of our colleague Sandra Kalanj, through the Association of Accommodation Providers on Vessels – Charter at the Croatian Chamber of Commerce, arguments that indicated the unequal position of charter service providers in relation to other entrepreneurs affected by the corona crisis were adopted.
Therefore, the prescribed Ordinance on Amendments to the Ordinance on the Implementation of the General Tax Law will include that certain provisions of the Ordinance on Profit Tax do not apply when determining the income tax base for the tax period starting from 1 January 2020 to 31 December 2020. The provision applies to the use of vessels, apartments and holiday homes.

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.

Notification: electronic court register excerpt

From 14 April 2020, an electronic extract from the court register may be obtained from the court registry website. The excerpt is subject to a court fee of HRK 5 per page of the excerpt. The excerpt can be downloaded immediately after the payment is made, via the Download excerpt button which appears on the screen or through the link provided to the applicant via email address stated in the request. Additional instructions can be found here.

Tax treatment of aid paid by the employer to workers for eliminating earthquake damage

The Tax Administration issued an opinion regarding the employer’s ability to pay non-taxable benefits to his workers who have suffered damage caused by the recent earthquake in the City of Zagreb and the surrounding area.

More information is available in the following document:

Tax Administration opinion




At its session on Tuesday, March 17, 2020, the government adopted a total of 66 measures to assist the economy during the coronavirus epidemic. The measures concern a total of 8 ministries, many of which relate to the protection of the liquidity and jobs of business entities within the scope of Ministry of Finance.

In order to maintain the liquidity, the Ministry of Finance proposed an interest-free postponement of payment and / or instalment payment of tax liabilities incurred during and due to special circumstances.

In the amendments to the General Tax Law (Official Gazette 115/16, 106/18 and 121/19) published in the Official Gazette no. 32/20 it is prescribed what it means to “Pay taxes in special circumstances”.

“Special circumstances” means an event or a condition which could not be predicted and could not be influenced, which endangers the life and health of citizens, property of greater value, significantly damages the environment, disrupts economic activity or causes significant economic damage, and in which circumstances we now find ourselves. In such circumstances, which affect the ability to settle tax liabilities, the maturity of tax liabilities incurred and / or due in accordance with special regulations may be postponed and / or may be granted to be paid in instalments, and in that time interest is not accrued and the statute of limitations does not apply.

In accordance with the amendments to the General Tax Law, Official Gazette no. 35/20, the Ordinance on the Implementation of the General Tax Law (Official Gazette 45/19), “IMPLEMENTATION OF THE TAX PAYMENT PROCEDURE IN SPECIAL CIRCUMSTANCES”, was amended and extended.

This part of the Ordinance defines what is considered a due tax liability, who is considered to be an applicant for the use of tax payment measures, indicators of inability to pay due tax liabilities, the method of filing a claim, tax payment measures and other provisions.

Due tax liability

A tax liability is considered to be an obligation of taxes and other public charges, except for customs duties and excise duties.

Due tax liability is any liability that is due before the expiry of the period of three months after the entry into force of Article 107a of the Act, that is, from March 20, 2020 to June 20, 2020.

Exception is that value added tax obligation is considered due if it is due within three months after the entry into force of Article 107a of the Act, starting with obligation that is due in the month that follows after the month in which the Article 107a is in force, in other words starting from VAT obligation for 03/2020 (or for 1Q2020) that is due in April. It ends with VAT obligation for 06/2020 (2Q2020) that is due July.

If the special circumstances last longer, the period may be extended by three months.

Applicant for tax payment measures

An applicant for the use of a tax payment measure is considered to be an entrepreneur who makes it probable that he or she is unable to pay due tax obligations and who has no unpaid tax debt at the date of application.

Exceptionally, for the due tax liability of the value added tax applicant may be an entrepreneur who in the previous year did not realize the value of deliveries of goods and services in the amount of more than HRK 7.500.000,00 without value added tax and who determines the tax base according to the deliveries in accordance with a special regulation on value added tax.

An entrepreneur will be considered to have no overdue tax debt if the amount of the tax debt is less than HRK 200.00.

Indicators of inability to pay due tax liabilities

The applicant will be considered unable to pay the tax due:

– if there is a decrease in income / receipts in the month preceding the month of application for tax measures at least 20% compared to the same month of the previous year, or

– if he / she makes it probable that his / her income / receipts will fall at least 20% in the next three months from the month of submission of the application as compared to the same period of the previous year.

In addition to fulfilling the indicators, the applicant should demonstrate that the due value added tax liability arises from the issued invoices that have not been paid and / or other indicators that affect its liquidity.

Applying for tax payment measures

The applicant for the application of the tax payment measures shall submit a written and reasoned request to the competent tax authority according to the place of residence or seat.

The request shall state the facts on the basis of which the tax authority will be able to assess whether the applicant has made it probable and / or proved that there is an indicator of the inability to pay the due tax.

A written and reasoned request will be considered to be an electronic filing requests submitted to the tax authority through the ePorezna electronic tax system, and exceptionally, taxpayers who are not users of the ePorezna tax system may file in another way that the Tax Administration enables and publishes on its website.

Deciding on a request to use tax payment measures

The tax authority will decide on the application for the use of the tax payment measures in a simple and expeditious procedure and inform the applicant electronically about the result.

Tax payment measures

On the basis of substantiated claims, a deferred payment without interest will be granted for arrears of tax liabilities, for a period of three months, counting from the statutory due date of each individual tax liability.

In the event of an extension of the special circumstances, an additional period of three months may be granted for already deferred tax liabilities and extended deferred tax liabilities to tax liabilities that fall due in the period of additional three months, excluding interest, for which new written and reasoned request is to be filed.

Repayment of deferred tax liabilities

An applicant who is unable to pay a deferred tax liability on its deferred maturity may apply for a repayment in instalments, without interest.

The instalment repayment may be approved in monthly instalments, up to a maximum of 24 months.

A written and reasoned request for instalment repayment of a deferred tax liability may be filed within five days of the due date of the liability that the applicant is unable to pay.

In the application for instalment repayment, the applicant indicates to which of the deferred tax liabilities the claim relates, where he can choose one of the following options:

– instalment repayment only for the matured deferred liability, whereby the approval of the request excludes the possibility of granting a instalment repayment for deferred tax liabilities that are due later, or

– instalment repayment for all deferred tax liabilities, due and not due at the time of filing the claim, in which case the deferred tax liabilities are due and instalment repayment is approved for their payment, instead of further deferral.

In case of non-compliance with deadlines for payment of tax liabilities for which instalment repayment is approved, it will be abolished.

Subsequent treatment by the tax authority of the applicant who has been granted tax payment measures

The tax authority may carry out a subsequent verification of the facts stated in the request submitted by the applicant in accordance with this part of the Ordinance on the basis of which the tax payment measure was approved. If the tax authority subsequently determines that it is not probable that the conditions for the tax payment measure have been fulfilled, it will determine the termination of the tax payment measure whereby the tax liabilities are due in accordance with special regulations.

If the tax authority subsequently determines that the applicant has in the course of special circumstances:

– misrepresented the facts explaining the claims and / or

– acted contrary to tax regulations and / or

– misused tax payment measures to obtain unlawful material gain

will notify the applicant of the failure to meet the indicators of inability to pay arrears of tax liabilities and will charge statutory default interest for the tax liabilities for which the tax payment measure was approved.

This Ordinance shall enter into force on March 24, 2020.


Dear Clients,

Thank you for concern shown for us and today’s events in Zagreb!

These days are full of challenges and surprises that we have not encountered so far, but we believe that together we will overcome whatever life brings us in the coming days and weeks.

SAPIENTIA Nova team is well, and we hope the situation is the same for you. Let us know how we can help you!


SAPIENTIA Nova Clients Information (COVID-19 – MEASURES; 03/19)

Dear Clients,

03/19/2020 The Civil Protection Headquarters of the Republic of Croatia issued a Decision on measures to limit social gatherings, work in commerce, services and holding sporting and cultural events, which comes into force on the day of its adoption.
The anti-epidemic measures required by this Decision are to prohibit the holding of all public events and the gathering of more than 5 persons in one place, and to suspend work in the commerce sector, except for the sale of essential items such as food and medicines. More information about which business entities and under what conditions they shall continue to operate is available on the Tax Administration website: LINK

The Tax Administration has issued a Notice regarding fiscalization, on the procedure for reporting data on temporary closure of offices or changes in working hours according to which companies should change the data in e-Tax also in case of changes caused by COVID19 anti-epidemic measures. It is the tax authority’s instruction that when submitting information on changes in the foreseen field Note company should indicate from when that change actually applies.


Please use google translate or call us for further explanation.

We wish you good health and to remain “corona-virus-free”!


SAPIENTIA Nova Clients Information (COVID-19 – MEASURES; 03/17):

Dear Clients,

We are reminding you of our notification dated March 12 ( and we are bringing additional information in order to provide the best possible service to our clients, keep you informed and minimize the risk of infection.

Since our profession does not belong to the first line of defence, we feel a responsibility towards the people to which that burden has fallen these days, our doctors, nurses, sales personnel in stores, pharmacists… It is our duty not to impede their work and to behave responsible as directed by the Croatian Public Health Institute. To achieve this goal, we are reminding you of the possibility of contactless functioning of our profession, and of your business.

We would like to further encourage you in your business and in overcoming the crisis, and we hereby announce that we will do our best to help you implement measures to help the economy recover from the negative effects of the coronavirus pandemic. We are following the Government’s announcements and will send you information about today’s Government agreed package of measures: link here.

In addition to the Government’s measures, we also provide an overview of employment-related options, an expert RRIF journal, which you can read in full (here).
Please use google translate or call us for further explanation.

We will follow the implementation instructions and support you in implementing the measures. Contact us with confidence. We will provide our economic recovery assistance service free of charge to our clients because we believe that it will also be of help to you.

SAPIENTIA Nova has access to all the data and e-tax services (ePorezna) of all its clients and will use the tax system’s electronic services as usually. If you need to communicate with the tax administration on your own, please follow the instructions issued by the tax authority about preventive measures to protect against diseases caused by coronavirus (COVID-19):
Entering ePorezna:
Information, instructions, and user guide for using ePorezna: to Become a User.aspx
Contact us:
Phone Numbers:
Call center:

We remain at your disposal for all arrangements. Please let us know if the situation in your offices and personal status changes, so that we can respond to the change in a timely manner.

We wish you good health and to remain “corona-virus-free”!


Covid-19 measures


Dear Clients,

Due to daily changes regarding Covid-19 situation, we would like to ask for your attention and cooperation in order to reduce the risk of infection to a minimum.

We are a bookkeeping, financial and advisory services provider to a large number of clients. Documents are being delivered to our office daily, meetings are held, and 10 of us are working at the office, so we believe there is a slight risk of virus transmission. In order to reduce the risk in the coming days, we suggest that you deliver business documentation and provide all information via email, telephone, messages, cloud service and other methods of contactless transfer.

In any case, we are fully at your disposal as always. The office will continue to work from 9am to 5pm, as usual, and should the situation change, we will be free to notify you immediately.
In the next possible phase, we may organize work from home, which we are already prepared for, in order to provide continuity of services.

We remain at your disposal for all arrangements. Please let us know if the situation in your offices and personal status changes, so that we can respond to the change in a timely manner.

We wish you good health and to remain “corona-virus-free”!


The Register of Beneficial Owners

The Register of Beneficial Owners (The Register) in Croatia is established on the basis of Articles 32-36 of the Anti-Money Laundering and Terrorist Financing Law (Lex). The Lex is in line with European anti-money laundering regulations. The primary purpose of the Register is to increase the transparency of beneficial ownership data, reduce the possibility of misuse to conceal the identity of beneficial owners as potential committers of money laundering offenses, including tax fraud, and to prevent the financing of terrorism. The aim of establishment of the Register is to increase transparency and availability of data on beneficial ownership. The Registry is controlled by the Financial Agency (FINA) on behalf of the Ministry of Finance – Anti-Money Laundering Office.

The deadlines for entering information into the Register began to run from 3 June 2019. All legal entities and trustees are required to inscribe the information on their ultimate beneficial ownership in the Register by 31 December 2019.

The Lex prescribes monetary fines in the range from 5.000 HRK to 350.000 HRK for legal entities and monetary fines in the range from 5.000 HRK to 75.000 HRK for their responsible persons.

The authorized person can file the necessary data in the Register without any charge in two ways:

  1. using Croatian Financial Agency (“FINA”) web application with corresponding  business certificate or
  2. in the offices of the Financial Agency on the provided forms.

If you would like to SAPIENTIA Nova perform the service of reporting data to the Register please contact us via e-mail