Amendment of the criteria for May and support measures for June 2020

17/06/2020

Amendment of the criteria for May 2020:

Employers who employ more than 50 employees:

  • Employers who employ more than 50 employees need to prove that in May 2020 they had a drop in income of at least 20% compared to May 2019, based on the submission of a VAT form for May 2020 and May 2019 to the Tax Administration.

Employers from the following sectors can apply for support measures for June:

  • Agriculture, forestry and fishing – only crop and livestock production, hunting and related service activities and fishing
  • Transport and storage – primarily passenger transport (by rail, land, air and water)
  • Accommodation, food and beverage service activities
  • Administrative and support service activities – only rental and leasing activities and travel agencies, tour operators and other reservation services and related activities
  • Artistic, recreational and entertaining activities, activities and production and screening video films, sound recording and music publishing activities and their distribution
  • Other service activities – repair of computers and personal and household goods and other personal service activities
  • Organizers of cultural, business and sports events, organizers of fairs and weddings, and related activities such as companies for equipment rental, audio and video recording, ticket sales, hall rental and other companies that generate most of their income from events and public gatherings

Employers are considered companies, crafts, family farms and natural persons who are self-employed.

Criteria:

  • Employers need to prove that in May 2020 they had a decrease in income by at least 50% compared to May 2019, based on the submission of the VAT form for May 2020 and May 2019 to the Tax Administration.
  • If the employer operates for less than 12 months, it is necessary to prove a decrease in turnover by at least 50% in May 2020 compared to February 2020 based on the submission of the VAT form for May 2020 and February 2020 to the Tax Administration.

Amount for support:

  • the amount of HRK 4,000.00 for the month of June per full-time employee or the proportional part per employee according to the number of part-time working hours.

Obligations of the employer

  • An employer who has requested support for 50 or more employees will be obliged to return the support if, from the moment of receiving the support until 31 December 2021, he acts in one of the following ways:
    • pays a dividend or share of profits or other equivalent receipts that are considered as distribution of profits of any tax period;
    • if he allocates his own stocks or own business shares to members of the management board and / or executive directors and / or procurators and / or other personal authorized to run all or part of his company;
    • grants the right to members of the management and / or executive directors and / or procurators and / or other personal authorized to run all or part of his company to an optional purchase of shares or any other right based on the value of own shares;
    • pays to members of the management board and / or executive directors and / or procurators and / or other personal authorized to run all or part of his company any amount such as: bonus for achieved results, reward for work results above the nontaxable
      amount prescribed by regulations that regulate the taxation of income and other similar receipts that are taxed as income from self-employment or other income, in accordance with the regulations governing the taxation of income;
    • acquires its own stocks or its own business shares.

This refers to employers who will act in the prescribed manner in the period from 29.5.2020. to 31.12.2021.

Important notice:

  • No benefits may be granted to employees employed after 19 March 2020, regardless of the reason for their employment
  • Employers who have not paid their salary (s) for April 2020 cannot use the measure
  • Private accommodation renters cannot use the measure
  • All employers who registered their activity and registered with the HZMO (Croatian Pension Insurance Institute) by 29 February 2020 can use the measure
  • The employer loses the right to a benefit support if from March 20, 2020 until the moment of payment of the support he had a greater drop in employment:
    • of 40% for employers employing up to 10 workers,
    • of 20% for small businesses,
    • of 15% for medium-sized enterprises,
    • and 10% for large companies.
NEWSLETTER - amendment of the criteria for May and support measures for June 2020 - ENG