Croatia

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

30/03/2020

Private moratoria

All sectors

HANFA asked leasing companies to clarify the process of approving the moratorium on leasing and sent additional recommendations to leasing companies relating to: the possibility of contracting a moratorium for a period longer than three months, termination of accrued interest during the moratorium, then suspension all forced collection procedures during the contracted moratorium period for previously regular leaseholders. HANFA also requests that no default interest be charged or levied on those lessees who have been granted deferred payment during the deferral.

19/03/2020

Tax deferrals

All non-financial sector

Tax deferral for firms and self employed persons for 3 months with extension option up to 6 months - personal income tax

08/04/2020

Tax deferrals

All non-financial sector

Possibility of tax deferral for firms and self employed persons for 3 months with extension option up to 6 months - personal income tax

17/03/2020

Direct grants

Non-financial corporations

Payment of minimum wages for firms for lay-offs prevention

07/04/2020

Public guarantees

Non-financial corporations

Guarantees issued by CBRD for and on behalf of the Republic of Croatia

17/03/2020

Public guarantees

Non-financial corporations

Various loan instruments and guarantee schemes to support liquidity of small companies and SMEs

27/03/2020

Public moratoria

Non-financial corporations

First measure was 3 month moratorium on loans for HBOR clients (SME, corporates and public entities) affected by Covid 19 pandemia.

30/03/2020

Public loans

Non-financial corporations

introduction of the new loan programms to support SME, Midcaps and large entities working capital, salaries and other fixed operational costs

17/03/2020

Public loans

Non-financial corporations

Micro loans to SME's for financing working capital and liquidity under COVID-19 measure

31/03/2020

Private moratoria

All non-financial sector

Credit institutions shall conscientiously and urgently consider and approve requests from clients (citizens and entrepreneurs) for deferral of payment for a period of at least three months, whose creditworthiness is seriously impaired in the current circumstances due to loss or reduction of permanent sources of income, and in favor of entrepreneurs whose income is significantly reduced compared to the total income in the previous period.

19/03/2020

Tax deferrals

All non-financial sector

Tax deferral for firms and self employed persons for 3 months with extension option up to 6 months - personal income tax

19/03/2020

Tax deferrals

All non-financial sector

Tax deferral for firms and self employed persons for 3 months with extension option up to 6 months - personal income tax

19/03/2020

Tax deferrals

All non-financial sector

Tax deferral for firms and self employed persons for 3 months with extension option up to 6 months - personal income tax

08/04/2020

Tax reliefs

All non-financial sector

ENTREPRENEURS ARE EXEMPTED FROM THE CONTRIBUTION LIABILITY FOR CO-FINANCED NET SALARIES BASED ON AIDS FOR MAINTAINING EMPLOYMENT WHICH ARE PAID BY THE CROATIAN EMPLOYMENT SERVICE

08/04/2020

Tax reliefs

All non-financial sector

EXEMPTION FROM TAX LIABILITIES (INCL. SOCIAL CONTRIBUTIONS) IN WHOLE AMOUNT OR IN PART TO TAXPAYERS WHO ARE PROHIBITED, DISABLED OR HINDERED IN THEIR WORK

08/04/2020

Tax deferrals

All non-financial sector

EXTENSION OF THE DEADLINE FOR FILING THE APPLICATION AND PAYMENT OF THE COMPANY INCOME TAX LIABILITY FOR 2019

08/04/2020

Tax reliefs

All non-financial sector

ENFORCEMENT PROCEEDINGS IN SPECIAL CIRCUMSTANCES, CHANGES REGARDING VAT ON IMPORTS

19/06/2020

Tax reliefs

All non-financial sector

THE DEADLINE WAS EXTENDED FROM THREE TO SIX MONTHS FOR THE IMPORT OF GOODS CARRIED OUT UNTIL THE EXPIRY OF THE PERIOD OF SIX MONTHS AFTER THE ENTRY INTO FORCE OF ARTICLE 107A OF THE ACT (MARCH 2020), VALUE ADDED TAX ON IMPORT IS CONSIDERED PAID IF THE TAXPAYER IS REGISTERED IN THE REGISTER OF VALUE ADDED TAX PAYERS ACCORDING TO A SPECIAL REGULATION IS STATED AS AN OBLIGATION IN THE VALUE ADDED TAX RETURN

08/04/2020

Tax reliefs

All non-financial sector

VAT EXEMPTION FOR DONATIONS

18/09/2020

Tax reliefs

All non-financial sector

FOR IMPORTS OF GOODS MADE UP TO AND INCLUDING 31 DECEMBER 2020, VAT IS CONSIDERED TO HAVE BEEN PAID UPON IMPORT, IF THE TAXPAYER ENTERED IN THE REGISTER OF VAT PAYERS ACCORDING TO A SPECIAL REGULATION STATES IT AS A LIABILITY IN THE VAT RETURN

12/01/2021

Private moratoria

All sectors

extension of the existing measure (HR-005)

12/03/2021

Tax reliefs

All sectors

Received donations (in charity campaign and public campaigns) are not taken into account when determining receipts of dependants.

08/12/2020

Other measures of fiscal nature

All sectors

Reimbursement of all or part of paid fixed expenses for December 2020. The taxpayers whose work was suspended by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of paid fixed expenses.

30/01/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for January 2021. The taxpayers whose work was suspended by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

25/02/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for February 2021. The taxpayers whose work was suspended by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

30/03/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for March 2021. The taxpayers whose work was suspended or restricted by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

12/03/2021

Tax reliefs

All sectors

When establishing tax deductible expenditures for 2020, due to the occurrence of exceptional circumstances and poor tourist season, the provisions on profit taxation under which the amount of gained profits is determined for the purpose of establishing tax deductible expenditures based on the use of vessels, apartments and vacation houses, do not apply.

23/12/2020

Tax deferrals

All sectors

Possibility of administrative agreement between tax authority and taxpayer for the sake of settling due tax debt and grace period of rescheduled debts.

30/04/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for April 2021. The taxpayers whose work was suspended or restricted by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

31/05/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for May 2021. The taxpayers whose work was suspended or restricted by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

30/06/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for June 2021. The taxpayers whose work was suspended or restricted by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

29/07/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for July 2021. The taxpayers whose work was suspended or restricted by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

01/09/2021

Other measures of fiscal nature

All sectors

Reimbursement of all or part of fixed expenses for August 2021. The taxpayers whose work was suspended or restricted by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia may request for reimbursement of fixed expenses.

23/04/2021

Other measures of fiscal nature

Other

The non-taxable remuneration paid to pensioners by JL(R)S, as well as the one-off cash supplements paid in addition to pensions pursuant to the Decision of the Government of the Republic of Croatia or pursuant to a special regulation to mitigate the consequences caused by the COVID-19 outbreak, are not taken into account when determining the right to personal deduction for dependent members, and since there is no obligation for paying agents to submit a JOPPD form, they are not included in the remuneration records of the recipients’ natural persons.

29/09/2021

Other measures of fiscal nature

Other

The import of goods by the EU or an agency or body established under EU law shall be exempt if the EC or that agency or body imports those goods in the performance of their tasks assigned to them by EU law to respond to the COVID-19 pandemic, unless the imported goods are used, immediately or later, for the purpose of subsequent supplies for consideration by the EC or that agency or body.
VAT payments with the right to deduct input VAT in the manner and under the conditions laid down in the special regulation on VAT taxation are exempt from supplies of goods or services by the EC or to an agency or body established under EU law if the EC or that agency or body buys those goods in the performance of their tasks assigned to them by EU law in order to respond to the COVID-19 pandemic, unless the goods or services purchased are used, immediately or later, for the purpose of further supplies for consideration by the EC or that agency or body.

30/03/2020

Borrower-based measure

Other

The recommendations allow leasing companies to adopt decisions according to which the lessees who have duly settled their obligations and who, based on clearly defined criteria, are determined to be unable to further pay their obligations, and whose business is already affected or will be affected and, starting from April 2020, fail to settle three instalments/annuities for three consecutive months, will not undergo enforcement until 31 March 2021.
Leasing companies are allowed to adopt a decision that by 31 March 2021 they will not be obliged to form an allowance for receivables under contracts concluded with the above-mentioned lessees, in order to facilitate the business operations of leasing companies themselves and reduce operating losses caused by the non-payment of instalments/annuities by the lessee.

21/04/2020

Other measure

Insurance sector

HANFA recommended to undertakings to:
. enable changes and adjustments of contractual rights and obligations resulting from insurance contracts and, over time, review the tolerance for postponing payment deadlines, especially:

1. tolerate delays in life insurance premiums payment up to 180 days, 2. in the case of MTPL, provide maximum waiting period of 30 days (where applicable), 3. in credit insurance, adjust contractual rights and obligations in relation to the legal possibilities of a moratorium on bank loans, especially in the case of clients who use the moratorium on credit repayment, 4. for other non-life insurance contracts, reconsider the postponement of premium payment deadlines, especially in the case of a multi-year insurance contract
. to postopne enforced collection of insurance premiums, in accordance with its own risk assessment and risk assessment of the counterparty, to policyholders who regularly met their contractual obligations until 31.12.2019. but now face difficulties in further regular payment;
. to enable to policyholders repayment of installments on loans / advances on the basis of a life insurance policy of up to 180 days (where applicable);
. to make decisions according to which no value adjustments of receivables will be formed for those clients who have duly settled their obligations by 31 December 2019. and who, on the basis of clearly defined internal criteria of the insurance company, have been determined to be unable to fulfill their obligations as a result of a coronavirus pandemic, and whose coverage has been retained and who are not properly settling their obligations starting in April 2020;

21/04/2020

Other measure

Insurance sector

HANFA recommended to undertakings to:
. refrain from new investments and from increasing investments in assets that are not listed on the regulated market, ie that were not listed on the regulated market until 31 December 2019. and in assets that are not traded regularly, ie which were not traded regularly until 31 December 2019.

. to make investment decisions with heightened caution, taking into account all risks, in particular market risk, credit risk and liquidity risk and the best interests of policyholders, and when deciding on all new investments in shares, corporate bonds, loans and leases to take particularly careful consideration of the credit risk and current creditworthiness of issuers, borrowers, lessees and other persons and to assess the consequences of the current situation on their operations.

21/04/2020

Other measure

Insurance sector

HANFA has recommended to undertakings to adjust their business strategy, implementation plans and projections of expected cash flows and investment portfolios, to new circumstances and expected challenges of the time to come.

19/03/2020

Special provisioning policy

Banking sector

For all clients (legal or natural persons) that are not classified as default as of the end of 2019:
CIs might keep the client classified as performing - legal person, whose business is affected due to the COVID-19 if a debt suspension, restructuring or new loan is granted, as long as that client has no material debt that is more than 90 days past due.

Same for clients - natural persons which are employees of the aforementioned legal person. CIs have to conduct new assessments of these clients as of the end of 1H 2021.
In case CI decides to suspend all legal enforcements for collection of the clients' debt (legal or natural person) which is past due up to three instalments cosecutively starting from April 2020, it will have no impact on that client's classification.

26/03/2020

Dividend distribution policy

Insurance sector

Temporary ban on dividend payments for insurance companies

26/03/2020

Reporting requirements

Infrastructure

30-day delay of regular reporting deadlines for firms authorised to provide investment services and market infrastructure institutionsa and pension companies

26/03/2020

Reporting requirements

Insurance sector

Delay of deadlines for regular Solvency 2 reporting in line with EIOPA Recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure - Coronavirus/COVID-19. Delay of deadlines for other regular reports (other than Solvency 2) for one month.

26/03/2020

Other measure

All financial sectors

Hanfa recommends to insurers, leasing and factoring companies to make necessary actions, i.e. to continuously monitor and evaluate solvency and liquidity and to cut all non-essential costs (including dividend payout, rewards and bonuses), in order to ensure continuity of business.

27/03/2020

Reporting requirements

Securities and markets

Hanfa will refrain from supervisory measures for issuers on domestic capital market if they fail to meet reporting deadlines due to justified circumstances

13/03/2020

Asset purchase programme

All sectors

Purchasing bonds of Republic of Croatia with an aim of maintaining stability in the market of government securities

17/03/2020

Asset purchase programme

All financial sectors

The CNB has expanded the list of eligible participants in monetary policy operations carried out by the purchase and sale of government securities to pension funds, companies for the management of open-ended investment funds with public offering (UCITS funds) and insurance companies.

23/03/2020

Other measure

Banking sector

Lowering general reserve requirement from 12% to 9%.

09/03/2020

Other measure

Banking sector

Four FX interventions in the period from 09.03.2020. to 16.03.2020.

12/03/2020

Market stop

Securities and markets

Suspension of trading of all financial instruments on the regulated market until the end of the trading day

21/04/2020

Announcement or public statement

Insurance sector

HANFA recommended to undertakings to implement all necessary measures to secure business continuity, especially: 1.1. inform consumers about the measures they take and how those measures may affect their contractual relationship and insurance services provided and 1.2. establish or continue to maintain a comprehensive communication in order to inform employees, distributors and customers about the status of business continuity plans and instructions on how to stay safe

21/04/2020

Other measure

Insurance sector

HANFA has recommended to undertakings to:
. assess the speed and efficiency of responding to new business conditions, improve their digital capabilities to provide faster and more comprehensive service to their customers and work on productive business planning by carefully considering everything they may need to adjust to business and its resistance to stress

. in accordance with own capacities in maintaining continuity in key business processes to make maximum efforts to enable the conclusion of distance contracts for all lines of business, taking into account the provisions of the Consumer Protection Act
. to pay special attention and resources to the security of the information system and the protection of personal data, and to adapt security protocols to new circumstances and the way of doing business
. to strengthen controls and measures against fraud, and to pay special attention to exposure to cyber risks and the importance of protection against cyber attacks, which are one of the most important risk factors for the company's operations and which are especially pronounced during extraordinary circumstances and to strengthen the security measures and activities of the risk management function in this regard.

12/03/2020

Announcement or public statement

Non-financial corporations

Recommendation for issuers on domestic capital market to disclose all relevant informations related to COVID-19 outbreak impact on their business, which was meade in line with ESMA recommendation.

17/03/2020

Other measure

All non-financial sector

Stand still for corporates and households for 3 months

19/03/2020

Other measure

Banking sector

Supervisory stress test and review of P2G is suspended until further notice

19/03/2020

Other measure

Banking sector

On-site inspections suspended

19/03/2020

Other measure

Banking sector

Delay in meeting supervisory measures might be granted in exceptional cases

23/03/2020

Exemption from penalties/fines

Non-financial corporations

Decision on exemption from issuer fees

30/06/2020

Tax reliefs (w/o fin. stab. relevance)

All non-financial sector

NOTWITHSTANDING THE SPECIAL REGULATIONS GOVERNING ADMINISTRATIVE COOPERATION,THE TIME LIMITS FOR SUBMITTING INFORMATION ON FINANCIAL ACCOUNTS TO THE CTA ARE EXTENDED BY 3 MONTHS

18/09/2020

Other measures of fiscal nature (w/o fin. stab. relevance)

All sectors

IN CONDITIONS OF SPECIAL CIRCUMSTANCES, AND EXCEPTIONALLY FROM SPECIAL REGULATIONS ON INCOME TAXATION, IT IS PRESCRIBED THAT THE COSTS OF LABORATORY TESTING OF INFECTIOUS DISEASES THAT THE EMPLOYER PAYS TO ITS EMPLOYEES AND WHICH ARE IN THE INTEREST OF THE EMPLOYER, ARE NOT CONSIDERED INCOME (SALARIES).

12/01/2021

Other measure

Insurance sector

extension of the existing measure (HR-002)

23/12/2020

Other measures of fiscal nature (w/o fin. stab. relevance)

All sectors

The taxpayer whose work was suspended by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia and the tax authority may conclude an administrative agreement in exceptional circumstances in view of settling the tax debt for tax liabilities which fell due in the period of suspension. In addition, the taxpayer whose work was suspended by virtue of the Decision of the Civil Protection Headquarters of the Republic of Croatia and whose liabilities were rescheduled under pre-bankruptcy settlement, pre-bankruptcy agreement, bankruptcy plan, administrative agreement or instalments, may submit an Application for Grace Period for Unsettled Rescheduled Liabilities that were rescheduled under the said procedures and fall due in the period of suspension. Liabilities that were granted the grace period fall due after the last annuity of previously rescheduled liabilities. During the grace period, no interest will be calculated for the liabilities that were granted the grace period.

19/10/2020

Other measures of fiscal nature (w/o fin. stab. relevance)

All sectors

The costs of vaccination against infectious agents that the employer and payer of receipts or salary provides at its own expense to workers and natural persons gaining receipts are not considered as receipts from employment regardless of the method of settling the vaccination cost.

23/12/2020

Other measures of fiscal nature (w/o fin. stab. relevance)

All sectors

Deadline for amending the decisions on local taxes with the possibility of temporary repelling the provisions on consumption tax and/or tax on the use of public land for certain months in 2021 has been extended

12/03/2021

Other measures of fiscal nature (w/o fin. stab. relevance)

All sectors

The deadline for submitting tax return for 2020 has been extended (and for other forms and reports).