The recently passed Accounting Act has been complied with the Guideline 2013/34/EU and is to be applied as of 1 January 2016. Until then, it is necessary to pass and to comply a number of regulations regarding the structure and contents of financial reports, the ways and types of public procurement, etc. The accounting system introduces licensing of accountants starting as of 1 January 2018, which will require the corresponding regulations.
The Act has introduced the category of a micro enterprise, which has not resulted in the reduced volume of financial reporting, neither a simpler book-keeping. For the first time the groups of enterprises are to be categorized for the needs of consolidation of financial reports.
The new Act has introduced a unique deadline for submission of financial reports for statistical needs and public disclosure, which is now the same as the deadline for submission of tax returns, i.e. until 30 April.
The compliance of the CFRS with the Accounting Act and the Guideline 2013/34/EU is expected to be completed until the application of the new Accounting Act, including the new IFRS.
Autor: Dr. sc. Tamara CIRKVENI FILIPOVIĆ , viši pred. i ovl. rač.
Value adjustment of long-term tangible assets affects the profit and loss account and the financial position of the company. However, value adjustment also affects the deferred tax assets and deferred tax liabilities. This is the result of the simple fact that the tax regulations allow value adjustment of long-term tangible assets up to the certain amount, only. Accordingly, value adjustment can in certain situations be observed as a temporary difference, which may generate certain tax assets that are compensated in the following periods, when value adjustment is recognized as expenditure.
In the case of purchasing motor vehicles on lease, it is obligatory to sign a written contract on operational lease. The lessee pays a guarantee which is recorded as long-term or short-term receivables, depending on the period of operational lease stated in the contract. The pre-tax in the received invoices for operational lease is not recognized if the object of lease is a car used for personal transportation. In the case when the leased object is a motor vehicle used for performing business activities, the pre-tax is recognized. The expenses of the operational lease of a car used for personal transportation are divided in the ratio 70:30, except in the case when the salary is calculated in kind (20% of the monthly instalment).
In the companies engaged in production activities there are often stocks of packaging which are divided in an inseparable (constituent part of the product) and separable returnable packaging. An inseparable packaging represents a direct cost of production and is recorded on the account of inventory of materials. The company’s own returnable packaging can be separated from the product and used for many times. Accordingly, it is recognized as expenses through the application of the calculative or one-time write-off. The other company’s packaging is specifically recorded off-the-balance.
In the case of transfer of objects between budget beneficiaries it is important to differentiate between the transfer of objects which are regarded as assets in view of accounting or the objects which are regarded as the objects which have or do not have a book value. The accounting regulations do not determine the way of recording the creation of long-term non-financial assets by the budget beneficiary. Accordingly, the solution of such a procedure could be proposed. Due to the specifics of the budgetary system and budgetary accounting, it is recommended to use the account section 915 – Changes in Value and Volume of the Assets without changing the purpose of the type of the cost used for the purchase of the materials for ordinary operations.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
Upon the sales of long-term non-financial assets attention should be paid to the date of their purchase and whether the cost of their purchase was recorded in the total net value. If the cost of their purchase was recorded in the total net value, it cannot be repeated upon their sales. The investment into the company’s capital has a characteristic of financial assets. The subsequent evaluation of such assets is not determined, neither the recording of the right to the share in profit.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
Volunteering means to invest one’s time, effort and knowledge voluntarily for the general benefit, without making any conditions for the payment or any other benefits. The expenses which arise upon performing such an activity are paid by the organizer of volunteering and are not regarded as the compensation for the performed work in cash. However, it is important to determine a tax position of such expenses in accordance with the provisions of the Income Tax Act.
The institutions founded by physical or legal persons – profit tax payers on their entire business activities – have, according to the valid Act, been eliminated from the Register of Non-Profit Organizations kept by the Ministry of Finance. Accordingly, only the accounting system of these organizations has been changed and they are not allowed to apply non-profit accounting since 1 January 2015. Such changes have raised the issue of profit tax for such institutions, as well.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
According to the tax regulations the employer may pay to the employees (under certain conditions) the compensation for transportation costs to and from work.
In the case when the conditions according to which the compensation may be paid without tax, the paid amount represents an income from non-independent work. The article presents some points which have to be taken into consideration by the employer upon payment of the transportation costs to and from work.
The payment of compensation of transportation costs to and from work to employees is defined as employees’ receipts. Employers are obliged to record such a compensation in the JOPPD Form, enforceable documents of employees (payrolls) and payment orders, in the case when it is paid to the current account.
Autor: Anamarija Miletić , dipl. oec., ACCA i ovl. rev.
Other income is defined as all the receipts which subject to income tax payment receied by physical persons, except salaries or income from other independent activities, income from capital, property, property rights or insurance. Other income also comprises the receipts based on the contract copyright work, compensations realized according to the temporary work contract and all other receipts in cash and in kind, realized by physical persons regardless of the contract i.e. the reason of their realization. They are taxed similarly. In the case when other income is received by physical persons from physical or legal persons with their headquarters being in other state, there are certain specifics which should be considered: tax payers should pay the tax by themselves and submit the reports to the Tax Administration and they are not obliged to pay the contributions for the mandatory health insurance. In the case when the Republic of Croatia signed the contract on avoidance of double taxation with the specific country, the provisions of such a contract have a preference over the domestic tax regulations.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The persons obliged to pay the tax on motor vehicles and vessels are legal and physical persons who are owners of registered cars, motorcycles and vessels. Such a tax is to be paid once a year and depends on the age of the vehicle, the length of the vessel and the motor power stated in kW. The payment of the tax on road motor vehicles and vessels is this year determined according to the ownership of movables as at 31 March in accordance with the data provided by the Ministry of Internal Affairs. In the case of the vehicles and vessels purchased during the year the tax to be paid is reduced by the amount for the period before the purchase.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
The tax per vessel tonnage is paid by the companies which provide navigational and sailing services by their own or rented vessels, as well as leased vessels. They may also sign a contract with their subsidiaries or the companies owned by the third persons, organize managing activities on board or sell the vessels registered in the taxation system per vessel tonnage.
Such companies pay profit tax on all other activities. Besides the usual book-keeping activities, these companies should apply analytical accounting of business events on which they pay profit tax, i.e. the tax per vessel tonnage.
Autor: Dr. sc. Šime GUZIĆ , viši pred. i ovl. rač.
The citizens from other EU member countries and the citizens from the third countries cannot pay the tax in a lump sum for the provided accommodation service in their own real estate in the Republic of Croatia. Their tax liabilities primarily depend on whether such a service refers rental or accommodation, the persons to whom such a service is provided and the tax position in their own country. The citizens of other EU member countries may, but do not have to, provide accommodation services in the Republic of Croatia without establishing a crafts business or a company in the Republic of Croatia. The tax liabilities of the renter, who is not a resident and who is a citizen of other EU member country, depend on the way of performing the activities in the Republic of Croatia, i.e. whether such a citizen is a tax payer in his/her own country. The renters who are citizens of other EU countries and who are not tax payers in their own country are obliged to be registered for VAT needs before they start providing services in the Republic of Croatia. If they are tax payers in their own country, they are not obliged to be registered for VAT needs in the case when they provide the accommodation or rental services to other tax payer. In such a case a reverse charge is to be applied. However, the renters who are citizens of the third countries are obliged to establish a crafts business or a company to provide the accommodation services. Their tax liabilities depend on whether such a crafts business or a company are entered in the Register of Vat Payers of the Republic of Croatia, or not.
The article presents the issue of a labour relation in the case when the employee works at home. The main problem is the fact that the compensation for the use of a study room (flat or a room in the house) is not determined in view of taxation. The article presents two court decisions from the German Taxation Law which might help solving the above stated problem in Croatia.
Autor: Dr. sc. Vlado BRKANIĆ , prof. vis. šk., ovl. rač. i ovl. rev.
The importance in the audit is the level of missed or incorrect accounting information, which would under certain circumstances contribute to misinterpretation of the reasonable person who relies on such information. The article presents the definition and determination of the term importance.
The Draft of the Standard Framework regarding quality characteristics of information introduces the requirement to apply the caution principle upon evaluation of the elements of financial reports. The caution principle comprises the elements of assets and the elements of liabilities. Accordingly, the evaluation of these elements affects the determined profit or loss. The application on the asset elements implies that the value is neither overestimated nor underestimated. Equally to this, the value of liabilities should neither be overestimated nor underestimated. Overestimates or underestimates directly affect the business performance in the current period and in the future periods. The article explains how to achieve such symmetry.
Autori: Prof. dr. sc. Josipa MRŠA Josip Čičak , mag. oec.
Nadzor računovođa i pravnih savjetnika
1. Akcijski plan za reformu korporativnih poreza
2. Za zapošljavanje mladih na raspolaganju milijarda eura
3. Tržište rada za hrvatske građane otvoreno u 22 članice
4. Razmatra se paneuropska shema garancija štednih pologa
5. EU-ovo nadzorno tijelo po prvi put kaznilo rejting-agenciju
6. Mađarska vlada pokreće nadzor računovođa i pravnih stručnjaka
7. Od sredine 2017. bez roaminga u EU-u
8. U Francuskoj i dalje 35-satni radni tjedan
9. EP za transparentnije korporativno izvješćivanje
The authors of the article present some issues regarding the new Bankruptcy Act, which was passed in June 2015 and becomes effective on 1 September 2015. The Act is the result of the need to solve the insolvency problems of business entities more efficiently in the time of the economic crisis, as well as the problems which were arising upon the application of the old Bankruptcy Act. Besides, the new Act now comprises bankruptcy and pre-bankruptcy procedures (the letter has so far been determined by the Act on Financial Transaction and Pre-Bankruptcy Settlement), as it is the case in the valid regulations of some EU member countries.
Autori: Jasna VUK, dipl. oec. i ovl. rač. Ante VIDOVIĆ, dipl. iur.
The indicators of liquidity, leverage and activities are aimed at measuring safety of business operations, whereas the indicators of activities, cost-effectiveness and profitability are aimed at measuring business performance. This article presents the indicators of liquidity, leverage, turnover and the date of payment collection of short-term receivables and the total income per employee for all the Croatia’s entrepreneurs obliged to pay profit tax according to their business activities (without banks and insurance companies).
The article may help to compare a company’s own data with those in the same branch in order to estimate a company’s own financial strengths.
The compensation for sick-leave paid to the persons who perform crafts businesses, free professions, agricultural and forestry activities is determined according to the basis on which they pay the contributions according to the ruling of the Tax Administration. In the case of sick leave due to the sickness or injury out of work, the compensation is paid since the 43rd day of sick leave by the Croatian Health Insurance Fund. The compensation s calculated as the average daily basis on which the insured person has been insured in the past six months before the start-up of the sick leave, under the conditions that all the contributions have been paid. A daily basis is determined in the net amount in the way that the contribution of 20% for pension insurance is deducted from the basis of a certain month, including income tax and surtax, taking into consideration the personal exemption of the employee in the way applied upon salary calculation. If the insured person has not been insured in the past six months for at least 2 months, the compensation is determined according to the lowest basis for payment of the contributions. The compensation paid by the Croatian Health Insurance Fund does not represent a receipt from entrepreneurial activity and does not subject to taxation. Accordingly, it is not recorded in the Book on Receipts and Expenses.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The companies and crafts businesses which perform catering services have to fulfil the minimum conditions regarding furnishing the facility and equipment, as well as other conditions.
Working time of catering facilities is determined by the corresponding Act. However, the units of local and regional self-government have the opportunity to make decisions on the extended working time.
In the case of exceeding the working time of a catering facility, the acts of sealing or redeeming the sealing are not applied anymore. However, such a violence of the regulations subjects to higher penalties, if repeated.
A caterer may obtain a decision on fulfilment of the conditions for the specific type and category of the catering facility in the area of the housing facility to provide the services of renting rooms, an apartment, a studio apartment or a holiday house.
The specifics of the status of seamen in terms of labour law and social law, as well as a large number of the elements from the public law in labour relations of seamen and shipping companies requires the harmonization of various legal solutions, which would determine the labour and social conditions of seamen on the national level. The social reform for seamen started in 2007 with the goal to equalize the status of seamen in the Republic of Croatia with the status of seamen in the EU countries and its acquis communautaire through inclusion of all the seamen in Croatia in the system of mandatory pension and health insurance of the Republic of Croatia, as well as taxation system. This article presents the issue of setting the norms for pension insurance of seamen.
The author of the article presents some relevant issues regarding inability of the repeated termination of contract on employment, termination of employment because of absence from work due to religious reasons and the inability of claiming termination of employment at court, all in view of the recent practice of the Supreme Court of the Republic of Croatia. It should be pointed out that such a court practice has been applied in accordance with the new Labour Act, which became effective a year ago.
The author of the article analyses some relevant issues regarding the institute of business managing without an order, which is in Croatian legislation determined by the Act on Obligations. It represents managing other company’s business without an order or authorization. It can be performed only if such performance does not cause delays, damages and brings benefits. The manager must (in no time) inform the master of the business on the performed activities and continue such activities, if this is reasonably possible, until the master can take over the business activities again.
The author of this article explains the ways and conditions for disposal of a business stake in a limited liability company. The author explains the terms of a stake and a business stake, stresses the difference between them, including the formal pre-conditions to be fulfilled, in order for the legal business of sales and transfer of a business stake would be valid and produce legal effects. Through the examples of the contract on transfer the article points to the subsidiary application of the Act on Obligations out of the field of the Law on Obligations. This primarily implies the possibility of its subsidiary application in terms of the Companies’ Act.
The public procurement system allows some explanations of filling in certain documents, in order to avoid mistakes, flaws or dilemmas regarding the corresponding documentation. It is also allowed to ask the bidders to explain certain elements of the bid. Both such institutes are not obliging for the client, but he/she may use them if needed.
The article presents the above stated institute and an overview of some decisions made by the State Commission for Control of Public Procurement Procedures.
1. Opći pregled
2. Cijene u RH i EU-u
3. Industrijska proizvodnja RH i EU-a
4. Građevinarstvo RH i EU-u
5. Vanjskotrgovinska razmjena
7. Turizam
9. Likvidnost i insolventnost
10. Zaposlenost i nezaposlenost HR i EU-a