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.