Extension of deadlines
The time-limit for filing tax returns has been extended. Where a taxpayer’s revenue has fallen by 20% or more, they will be able to postpone payment of their tax liability (extensions of 3 months plus 3 months).
Deferral of payments
All taxpayers are able to defer payments or to arrange an instalment plan for their tax liabilities, social security contributions and certain non-tax levies, without being subject to late payment interest, during the period of deferral of payments (payments in instalments). This will not start the statute of limitations for a period of 3 months, which can be extended. Thereafter, payments can be made in instalments of 24 months.
Remitting penalties and interest
For all taxpayers, during the period of deferral of payments, there will be no interest or penalties charged.
Debt payment plans and suspending debt recovery
All taxpayers may apply for payments in instalments of 24 months (this is a regular measure). In specific circumstances, it is possible for debt recovery to be postponed.
Audit policies and tax certainty
Internal audit policies are being adapted, taking into account that certain activities are banned and that strict security measures have been introduced. Taxpayer requests are being dealt with as a priority to try to give certainty quickly. Special legislation is being introduced regarding tax rules in response to Covid-19.
Enhanced services and communication initiatives
Taxpayer enquiries arising from the Covid-19 crisis can be addressed to the call centre, by email or online communication. An enhanced service is provided also through ePorezna/eTax. Enquiries relating to Covid-19 are being prioritised.
General measures
The Croatian Government has introduced a new range of measures that further facilitate taxpayer's business affected by the Covid-19 crisis including:
- entrepreneurs whose revenues have been reduced by 20-50% are exempted from paying taxes on income, profits and social security contributions for the next 3 months;
- entrepreneurs who have experienced a decrease of revenues by more than 50% are exempted from paying all their tax liabilities;
- the state takes over the payment of wages to workers in the amount of 4000, 00 HRK net and also pays the social contribution to this amount;
- paying VAT after issued Invoices have been payed;
- postponing the submission of financial statements for 2019.
Business Continuity Measures
Governance arrangements
At the level of the Republic of Croatia, the Ministry of Administration issued an Instruction on the work of state administration bodies. The work of the Tax Administration is deemed an essential service therefore the institution must continue to carry out its activities. For the purpose of community-wide healthcare, the Tax Administration's employees are divided into groups A and B for alternate working.
Scenario planning
The availability of the IT system is ensured in accordance with the Instruction on home/remote work security measures. The instruction was sent to all employees via email, and officers are required to comply with data protection rules. If stricter measures are put in place, working operations will be done online, except for those that cannot be done online.
Identification of critical and non-critical activities
Jobs related to resolving taxpayer filings are prioritized at all levels, from branch offices to regional offices. Central office plans all activities and issues all instructions intended for taxpayers and tax officials/employees.
Understanding critical vulnerabilities
Coordinators were appointed at the time of the special working conditions - the assistant director generals - who are in charge of crisis management in the field of IT, audit, legislation and human resource issues.
Staff and taxpayer safety
For the purpose of implementation of health instructions issued by the National Crisis Headquarters, information was sent to taxpayers through different media channels advising them to use ePorezna/e-tax services and not come physically to the offices. They also are able to use the call centre, email and telephone.
Remote working
Officers were able to declare who can work from home; officers are divided into 2 teams which will come to work alternately; it is also recommended for people with small children, who do not have access to babysitting, to take vacations.
Contact arrangements
All current employees’ contact details were collected (phones, addresses) so that everyone could be reachable. In this regard, so-called e-passes have been issued for employees arriving from other places (ban on changing the place of residence) or using limited public transport facilities. The procedure in cases of suspected Covid-19 infection, released by the Croatian National Institute of Public Health, was sent to all employees, along with phone numbers of competent epidemiological services throughout Croatia. Also, instructions were sent to officials regarding sick leave regulations in cases where a measure of self-isolation is ordered.
Training and redeployment
Staff are able to use the e-learning system and receive instructions from the team responsible for education.
Other Measures
Wearing of masks and gloves and avoiding social contacts with other employees is recommended.
In case you have any document of information which you find worth to share regarding the actions, measures or concrete experiences in countering the crisis, please do not hesitate to upload it to the subpage focusing on Covid-19 Crisis Support on IOTA website in order to share it with other members.