Mazars Extraordinary Tax Newsletter 14th May 2021

The Governing Board of the Croatian Employment Service (“CES”) on their recent meeting has issued decision on the new aid for the job preservation in activities affected by COVID-19 and recent earthquake disaster for March-May 2021. This is an amendment to the Aid rently adopted, which referred only to the month of March and April, and with this decision of the Governing Board, it was extended to the month of May.

Conditions for the use of aid have remained more or less the same as for the previous aid (March-April 2021).

As opposed to the previous aid, changes refer mostly to  criteria for receiving an aid.

• Criteria

The employers have two options for determining criteria for obtaining aid.

Option 1:

Cumulative income / receipts for the period from 1 April to 30 September 2020, compared to the same period in 2019. For taxpayers of quarterly reports, cumulative of II and III quarter of 2020 or IV quarter is compared with the same period in 2019.

Option 2:

Month for which aid is requested (i.e. May 2021) and comparative month in 2019.

More information on the measure itself can be found on the official CES website.

• Submission of application for aid

Requests for payment of monthly salary costs for April and May 2021 can be submitted from April 24, 2021 to May 23, 2021.

Requests for payment of monthly salary costs for May 2021 can be submitted from May 24, 2021 to June 23, 2021.

• Reimbursement of fixed operating costs

Additionally, the employers who have submitted a request for the preservation of jobs because their work has been prevented by a decision of the Civil Protection Headquarters or an epidemiologist will be entitled to receive an additional full or partial reimbursement of the fixed costs under certain conditions.

More information on this option can be found in the Tax Authority’s instruction.