The Art. 61 of the Income Tax Act, according to which a dividend and a share in profit were supposed to be paid on the giro-account of a shareholder or company members, has been changed. According to the changed provisions, which become effective on 15 October 2011, a dividend i.e. a share in profit may be paid in a different way. The realized profit may be paid in cash. The company members may according to the internal by-laws and the Companies Act use the realized profit to settle their private expenditures.
The term clearing payment comprises the settlement of the cash liabilities and receivables between the participants of the clearing payment without cash assets. It is carried out through compensation, cession, takeover of the debt and other forms of settlement of the mutual cash liabilities and receivables. In the conditions of the general lack of liquidity, entrepreneurs frequently settle their liabilities and collect their receivables through clearing payment. The article analyzes the specifics of some forms of clearing payments in view of the Act on Obligatory Relations and the Act on Distraint of Cash Assets, including the way of their recording in business records, which depends on the particular contract party.
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač.
The costs of advertising of the company or the products and services represent the costs of the current period recognized as the expenditure in terms of taxation. However, the costs of promotion are in some cases difficult to differentiate from the entertainment costs and the costs of gift giving. The costs of entertainment are business expenses and are partially recognized as expenditure in terms of taxation. The author of the article presents various costs of promotion and entertainment and explains their position in business records and financial reports of a company.
The share capital of a shareholding company or a limited liability company is not a constant category which does not subject to some changes. It is a variable category which is changed under certain conditions, within the framework and in the strictly formal way determined by law. The article presents the procedure referring to the decrease of the share capital of a limited liability company as the most frequent legal form of the companies in Croatia.
Autori: Tamara CIRKVENI , mag. oec., univ. spec. oec. i ovl. rač. Ante VIDOVIĆ, dipl. iur.
The financing of operations with the company's own source of funds is considered inappropriate in theory, but represents a great advantage during the economic crisis. This refers especially to the protection of creditors, which has never been so poor. The constant fall of capital share compared to debts has been a trend for years, leading to the absolute weakening of the financial strength of companies. The distribution of profit – dividends into reserves and retained earnings is of marginal importance. The author of the article presents the measures for improvement of the protection of capital and debtors. For example, the change of the policy of the use of profit represents an internal measure of the company's owner, which should be carried out in favour of the capital. In view of the external measures, the changes in taxation of the profit are necessary in order to protect the company's capital. This includes the introduction of the protective interests on the capital and the review of some expenses which have not been recognized so far. It takes a number of years to improve the structure of the company's capital, actually as twice as longer as it took to deteriorate the capital.
Autor: Dr. sc. Vlado BRKANIĆ , prof. vis. šk., ovl. rač. i ovl. rev.
The growing of mushrooms such as oyster mushrooms, champignons, shiitake and alike is an agricultural activity i.e. the process of biological conversion of assets in order to create agricultural products. The author of the article presents the accounting of mushroom production according to the requirements of the accounting standards and presents the example of the calculation and recording of the production costs of oyster mushrooms.
Legal and physical persons are allowed to give donations to political parties. The donations may be given for the regular operations or the financing of the promotion before the elections. However, there are certain limitations and the specific documentation which should be issued. Some documents should be issued by the donating person. The expenditure i.e. costs of donations have a specific position in view of the taxation with the profit tax or income tax. The article stresses some circumstance which may affect the decision on donating.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
This budgetary workshop comprises the recording and analysis of business events such as the collection of income for specific purposes and the reimbursement of obligatory contributions for pension insurance. Upon the collection of income for specific purposes it is important that the income collected on behalf of other budget cannot be recorded as the own income of the budget. Pursuant to the accounting principles, if the reimbursement of the obligatory contributions by the Croatian Institute for Health Insurance refers to various accounting periods, it should not be recorded as the income of the period in which it was collected, but diversified in the corresponding way.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Legal and physical persons are allowed to give donations to political parties. The donations may be given for the regular operations or the financing of the promotion before the elections. However, there are certain limitations and the specific documentation which should be issued. Some documents should be issued by the donating person. The expenditure i.e. costs of donations have a specific position in view of the taxation with the profit tax or income tax. The article stresses some circumstance which may affect the decision on donating. Keywords: .
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The value of the fixed assets of non-profit organizations is adjusted and accordingly their net/estimated value decreases. The entities obliged to apply the Directive on Accounting of Non-profit Organizations have to calculate the depreciation i.e. write-off (adjustment) of the value upon decrease of the value of their fixed assets according to the depreciation rates determined by the Directive.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
The rights, conditions and ways of using the health protection abroad are determined by the Rulebook on the rights, conditions and ways of using the health protection abroad in accordance with the basic provisions of the Act on Obligatory Health Insurance Abroad as well as the international contracts and agreements on the social insurance signed by the Republic of Croatia or adopted from the former Yugoslavia. The Rulebook defines the persons who have the right to such an insurance, what are the employers obliged to do when sending their employees abroad for work or training and what are the obligations of other persons insured on the basis of independent performance of activities as well as the insured persons who are abroad for private business, including the way of financing such rights.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The possibility of recognizing the pre-paid tax from the input invoices and the obligation of VAT payment on deliveries of goods and services is the current issue among VAT payers. These two tax activities are connected and as a rule only the calculated VAT on the outgoing invoice can under certain conditions be recognized as a pre-paid tax by the receiver of the invoice. However, in specific tax situations the VAT payers may recognize the pre-paid tax in the input invoice only partially, regardless of the fact that the company which issued the invoice presented the tax liability on the entire base. Besides, the companies which have changed their tax position, e.g. left the VAT system, have to correct – return the over-recognized pre-paid tax. At the end of the tax period they have to adjust the VAT if they recognized a higher amount of the pre-paid tax than determined in the final account. The article comments on the key provisions regarding the recognition of the pre-paid tax with a special emphasis on the changes in adjustment and correction of the pre-paid tax determined by the last amendments to the VAT Rulebook, which became effective on 1 August 2011.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Entrepreneurs frequently ask the questions regarding the form and the person to whom a donation may be given, how such business events are to be recorded in business records and what is the tax position of donations. The article explains what the term donation comprises, points to the difference between a donation and a sponsorship and presents the way of recording of the given donations. It also presents the conditions which have to be fulfilled in order to recognize a donation as an expenditure in terms of taxation.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
According to the provisions of the Value Added Tax Act the transactions within the insurance and re-insurance activities and the related services performed by the insurance representatives and mediators are VAT free without the right to deduction of the pre-paid tax. According to the provision of the Rulebook on Value Added Tax the insurance activities comprise the signing and fulfillment of the provisions of the life insurance and non-life insurance contracts, whereas the re-insurance activities comprise the signing and fulfillment of the re-insurance contracts, according to which the risks assigned by the insurance company are accepted in accordance with the specific regulations regarding the activities of insurance and re-insurance. The article presents the application of the value added tax regulations, the transactions in insurance and re-insurance and the court practice in the European Union.
The sources of funds and the way of financing the operations governed by the county, the municipality and the town i.e. the units of local and regional governments are determined by the Act on Financing the Units of Local and Regional Governments. According to this Act the units of local and regional governments realize the income from their own sources, from participation in distribution of the common taxes and the supports from the state and county budgets. The article states the taxes which towns and counties may collect independently, including their own sources of funds, the tax payers, the tax base and the amount of the tax rate up to which a tax may be collected.
The last RRiF issue published the article on the tax position of interests after 1 July 2011 in view of the effect of the discount rate of the Croatian National Bank on the amount of default interests and the contracted interest rates. However, in the meantime some other provisions regarding interests were changed too. According to the one of the amendments to the Act on Income Tax the limits of the interest rates on the loans granted to physical persons have been reduced from 4% to 3% p.a. The above stated Amendments became effective on 15 October 2011.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The obligatory part of the auditor’s work is the preparation of the auditor’s documents. This article presents the provisions of the Audit Act and the IAS which an audit company has to apply upon preparation, compiling and filing of auditor’s documentation (work papers and maps). It also explains the contents of the auditor’s documentation, its purpose and the provisions regarding the supervision of the auditor’s documentation.
The article presents the work of the International Financial Reporting Standards Board, who published, besides other standards, the IFRS 10 - Consolidated Financial Reports. The article presents the goal of this standard, its application, control and the accounting requirements.
The largest part of the project documentation to be filled in order to apply for the project for non-refundable funds of the IPA Program, including other contests too – e.g. the EU Programs, is certainly the project application. The quality of the project idea is proved and explained in detail in the application form. It also requires the preparation of the brief version of the idea, the so-called the project concept, including the information on the applicant and the project partners, if any. The article presents the project application form and all the key sections to be filled in order to apply for the project.
The RRiF Magazine (issue 10/11) published the introduction into the issue of evaluation of real estate. This article presents a number of methods and ways of estimating real estate (evaluation) with a special emphasis on the method of capitalization of returns. These methods are mostly used in modified forms by means of the method of discounted cash flow upon evaluation of developing investment real estate projects.
The article analyzes the issue of personal bankruptcy with a special emphasis on the need of destigmatization of the bankruptcy, without which the legal framework cannot fulfill the goal it refers to. The article also stresses the reasons why the institute of bankruptcy of physical persons is socially and economically acceptable. The aim is to point to the advantages and disadvantages and to identify the messages applicable in Croatia.
The most parts of the new Act on Payment Transactions have been effective since 1 January 2011. Another element of the new system of payment transactions – the so-called universal payment order for national and international payment transactions is to be introduced on 1 January 2012. In 2012 the providers of payment services will receive both, the old and the new payment orders, whereas from 1 January 2013 the old payment orders will not be applied any more.
Due to the high degree of freedom in foreign currency operations there is an impression that there are no limitations in foreign currency operations among foreign currency residents. Accordingly, a number of tourist agents have the opinion that they can operate with foreign currencies without any limitations. This article stresses the limitations, due to the fact that the basic means of payment in the Republic of Croatia is the Croatian Kuna.
The institute of temporary import and export of goods plays an important role in the customs system of every country. The basic characteristic of temporary import or export is that the goods are temporarily sent from one customs area into another. The temporarily imported goods are under the customs supervision of the country into which they have been temporarily imported from the moment of their crossing the customs border until their return – the repeated export abroad or their putting into free trade, which is not so frequent. The article analyzes the forms of import and export of goods which are according to the Annex E of the Istanbul Convention partially exempted from payment of customs tariffs.
The Act on Amendments to the Act on Commerce from 2008 became effective on 15 October 2011. The article analyzes the Amendments to the Act on Commerce, especially the provisions referring to the way and the conditions under which salesmen and other economic entities may perform commercial activities, including the obligations they have to apply.
According to the previous provisions of the Companies’ Act the company was obliged to employ (sign the contract on employment) with at least one member of the management, whereas the companies which had branch offices were obliged to have at least one permanently employed person in each branch office. According to those provisions the company could not start its business operations without employees. However, according to the Decision of the Constitutional Court of the Republic of Croatia no. U-I-646/1999 from 10 May 2000 and the Decision no. U-I-945/1999 from 23 May 2000 the above stated provisions on employment were cancelled. Accordingly, depending on the system of obligatory insurance the management members and the executive directors of shareholding companies may be obliged to pay the contributions for obligatory insurance. The article presents the obligations of the management members or executive directors in the case when they are not in the system of obligatory insurance (unemployed), including the obligations of foreign residents.
Prava, uvjeti i način korištenja zdravstvene zaštite u inozemstvu uređeni su Pravilnikom o pravima, uvjetima i načinu korištenja zdravstvene zaštite u inozemstvu u skladu s temeljnim odredbama Zakona o obveznom zdravstvenom osiguranju i međunarodnih ugovora odnosno sporazuma o socijalnom osiguranju koje je RH sklopila ili preuzela iz bivše države. Pravilnikom se uređuje koji osiguranici ostvaruju to pravo, što trebaju učiniti poslodavci za svoje radnike koje šalju na rad ili stručno usavršavanje u inozemstvo odnosno što trebaju učiniti ostali osiguranici koji su osigurani s osnove samostalnog obavljanja djelatnosti i osiguranici koji se nalaze u inozemstvu po privatnom poslu te kako se financiraju ta prava.
1. Koji osiguranici Hrvatskog zavoda za zdravstveno osiguranje mogu ostvariti pravo na korištenje zdravstvene zaštite u inozemstvu 2. Zdravstvena zaštita u inozemstvu osiguranika koji je upućen na službeno putovanje 3. Korištenje zdravstvene zaštite za vrijeme boravka u inozemstvu zbog rada, stručnog usavršavanja odnosno obrazovanja u inozemstvu koje traje dulje od 30 dana 4. Osiguranici koji borave u inozemstvu zbog privatnog posla 5. Plaćanje posebnog doprinosa za korištenje zdravstvene zaštite u inozemstvu
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
According to the latest amendments to the Act on Pension Insurance the persons insured by the pension insurance based on the individual capitalized savings (Second Pillar), who got insured at the age between 40 and 50, may cancel such an insurance contract and become insured on the basis of generation solidarity (Second Pillar). Besides, according to the changed provisions of the Act on Pension Bonus the amount of the pension bonus is included in the basic pension, being subject to taxation together with the amount of the basic pension.
The court practice, which is often considered as the source of rights, is of a great importance for the acts of the legal entities regarding their mutual rights and relationship. This does not only refer to the practice of the Supreme Court as the highest court instance, but also to the courts of lower instances, whose decisions are based on the valid and firm legal arguments. The article presents a decision made by the Supreme Court of the Republic of Croatia and two decisions made by the county courts in the field of labour law, which are, according to the authors’ opinion, based on the acceptable arguments.
The back-ups within the general budget as well as those given or received from abroad represent the current and capital transfers of assets within the general budget or international organizations, the EU institutions and bodies and foreign governments. In the consolidated financial report of the general budget the back-ups within the general budget are eliminated, whereas the back-ups give to foreign governments, international organizations and the EU institutions and bodies are recorded. According to the Rulebook on Budgetary Accounting and Classification of Accounts the transfer of assets to budget beneficiaries is not classified in the group of accounts no. 36, but the corresponding expenditure for which the back-ups are transferred are recorded directly in the budget.
1. Općenito 2. Cijene 3. Indeks proizvođačkih cijena industrije 4. Industrijska proizvodnja 5. Vanjskotrgovinska razmjena 6. Trgovina na malo 7. Turizam 8. Plaće 9. Likvidnost i solventnost 10. Zaposlenost