Računovodstvo, revizija i financije 6/2020

The Management Board of the Croatian Employment Service (hereinafter: CES) has adopted the measure regarding the subsidies for the preservation of jobs in activities affected by Coronavirus (COVID - 19). The aim of the measure is to preserve jobs among employers whose economic activity has been disrupted due to the special circumstance caused by Coronavirus (COVID-19). The amount of the subsidy is determined in the amount of HRK 3,250.00 for the month of March per full-time worker, i.e. the proportional part per worker according to the number of part-time hours, i.e. in the amount of HRK 4,000.00 for the months of April and May per full-time employee, i.e. a proportional part per employee according to the number of part-time hours. In addition, based on the data from the Tax Administration, the CES will pay contributions (pension insurance - II pillar) in proportion to the amount of the subsidy granted, namely the amount of HRK 203.12 for March per employee and the amount of HRK 250.00 for April and May per employee.

The Amendments to the Profit Tax Rulebook, published in the Official Gazette no. 59/20, refer to the tax position of the income based on the subsidies in the case of the specific circumstances stated in the Art.6., Par.6 of the Profit Tax Act, aimed at mitigating the negative consequences of the coronavirus. The subsidies are not to be included in the profit tax base, neither in the profit tax return for 2020 – PD Form and PD-NN Form.

This article presents the case of manipulation of financial statements performed by Eddi Antar. Although this is a fairly long time ago, the accounting manipulations which were performed then are still relevant today. Frauds do not only refer to tax evasion, as it is often thought, but also to the damage suffered by businesses that fraudsters drag into their network. Although restrictive tax regulations and the VAT system have prevented many common simple manipulations, the imagination of fraudsters is unlimited and it is never certain that manipulations will not occur even by applying aggressive accounting with completely irregular postings and disclosures.

The specifics of investments in cereal production as well as all investments related to organic transformations are reflected in the distribution of costs, especially the costs that can be included in the value of cereals produced. In the article, the author explains the accounting monitoring of cereal production in accordance with the requirements of CFRS 17 or IAS 41 and provides a complete example of calculation and accounting of the costs of this production.

Entrepreneurs can enter into a lease agreement for business premises with natural or legal persons - owners of business premises. After concluding the agreement, new business events appear which need to be entered in the business books.

Recently, there has been a temporary reduction in the rental price due to work limitations caused by the coronavirus pandemic.

In this article, the author explains the accounting and tax position of business events related to the lease of business premises.

In some periods, companies as profit tax payers could realize tax savings for the so-called  re-invested earnings through investing into fixed assets and adding the realized earnings into their share capital. When, after several years the members of the company wish to pay out such increased share capital, a tax liability arises for both the profit tax and the capital income tax.

A company together with its subsidiaries form a group of entrepreneurs. A company which controls a subsidiary is considered to be a parent company which, in addition to individual financial statements, is obliged to prepare consolidated financial statements for the purpose of public disclosure. Consolidated financial statements do not have to be compiled by the so-called small groups.

Passenger cars that are recorded in the property of the entrepreneur as long-term tangible assets, can be used for personal transport of employees and members of the management and to perform activities that are specifically listed in the VAT Act. In the case of purchasing a car that will be used for personal transport, and VAT is charged during the purchase, it may be deducted as pre-tax (50% of pre-tax). The purchase value is not important for the deduction of pre-tax when purchasing passenger cars. If a car is procured from a citizen or entrepreneur who has applied the exemption when selling a vehicle, an administrative fee is paid at the time of vehicle registration. The administrative fee and the special tax on motor vehicles are included in the purchase value of the vehicle as non-refundable taxes.

Short-term borrowings can be received in one budget year and repaid in other budget years. Due to the fact that many local units will borrow money in 2020 in order to overcome the difficulties in different dynamics of cash inflows and settlement of liabilities, the budget years of its repayment must be monitored in order to record them correctly. The value adjustment of receivables is carried out on the basis of direct provisions in budgetary accounting. Special attention is paid to those receivables which include value added tax. If value added tax is included in receivables which must be value-adjusted, it is disputable how it is recorded.

Non-profit legal entities in the sports system also  had the right to the subsidies for eligible for job preservation during the COVID-19 pandemic. The receipt of the subsidy for job preservation is recorded as income regardless of the manner of its realization. When calculating the employee's salary, regardless of the subsidy received, the calculation is made according to the agreed salary. When leasing business premises,  the tax liability can be assumed on behalf of the lessor, who is a natural person, but from the point of view of a non-profit organization, this has the character of a lease, not a tax.

In this article, the author discusses the newly adopted Act on Intervention Measures in Enforcement and Bankruptcy Proceedings during Special Circumstances, which introduced a moratorium on enforcement of salaries by the employer due to the emergency situation caused by COVID-19.

This article discusses the issues related to salary compensation during vacation, holiday bonus and enforcement upon the payment of these benefits. The salary compensation during the annual leave is the amount that the employer is obliged to pay to the employee during the use of the leave, while the holiday bonus is a substantive right of the worker that can be exercised only on the basis of enactments governing workers' rights.

Recognition of the right to sick leave and salary compensation during sick leave caused by an injury at work or an occupational disease is determined by the competent body of the Croatian Health Insurance Institute-HZZO on the basis of the report of injury by the employer or the competent doctor or the person him/herself. Unlike "ordinary" sick leave, the compensation for such a type of sick leave is paid by the HZZO from the first day of the sick leave, but only after the recognized injury at work. While waiting for the recognition of an injury at work, the compensation is paid by the employer at his/her own expense and on the basis of a remittance issued by the competent doctor. Compensation to an employee for an injury at work is paid in the amount of the average salary paid in the six months before the month when the sick leave began without restrictions. If in the period of 6 months before the month when the sick leave began, the employee was paid only one or no salary, the compensation is paid in the amount of the agreed salary. In the event that the employee's employment is terminated during the use of sick leave due to an injury at work, the payment of compensation is taken over by the HZZO from its own funds until recovery.

According to the provisions of the VAT Act and the Rulebook on VAT, there are exemptions in a domicile country, exemptions for deliveries of goods within the EU, exemptions for exports of goods (to third countries) and exemptions equal to exports, exemptions for imports of goods, for transactions relating to international trade, and exemptions for brokerage services. In addition to the conditions that taxpayers should fulfil in order to obtain an exemption, which arises from both VAT and customs regulations, it is important to distinguish in which transactions taxpayers may recognize pre-tax on input invoices when acquiring goods that are exempt on delivery.

Bestowals for health purposes are common in practice. In order for such donations to be tax-friendly for the donor, they must be provided according to the determined conditions.

The regulations on the taxation of profits provide for the possibility of bestowals for health purposes to associations and other persons who perform the above activities in accordance with special regulations. For health needs, under the determined conditions, it can also be donated to natural persons, including employees of the donor company.

Due to the COVID-19 pandemic, there is a high demand for ethyl alcohol. The article explains in more detail the difference between ethyl alcohol and denatured and partially denatured alcohol and the purpose for which it can be used from the point of view of excise taxation. It also lists the measures approved by the Customs Administration to businessmen due to special circumstances caused by the COVID-19 pandemic, which last until the official cessation of the application of special measures introduced to prevent the spread of the coronavirus epidemic.

The article sets out the views of the Court of Justice of the European Union regarding the tax position of real estate supplies in specific circumstances. In the first case, the Court deals with two deliveries of the same property, which consists of the land and an old warehouse on that land, and, in view of the specific circumstances of those deliveries, analyses their tax position. In the second case, the Court deals with determining the compliance of the application of the term "first residence" of real estate in national legislation with the law of the European Union, and what in the context of tax treatment of real estate delivery improvement of the building means.

The article presents new provisions in the Act on Water Supply Services, which entered into force in 2019, and refer to the obligations of auditing financial statements under Art. 36 and 107 of that Act. 

The article explains how the auditor who accepts the engagement of the audit of water service providers reports to the owners of the company and the Water Supply Services Council and provides the examples of reports that are processed in the amendments to Guideline 6 of the Chamber of Auditors.

The IFRS Interpretations Committee (IFRIC) has received an inquiry regarding the post a sale and leaseback transaction with variable payment. The reply gives the view that the response is contained in IFRS 16, and depending on whether the requirements of IFRS 15 are met, revenue is recorded.

In early April, the European Commission adopted a temporary framework allowing members to take full advantage of state aid regulations to help the economy due to the COVID-19 pandemic. Members may also grant, up to EUR 800,000 per enterprise, interest-free loans or loan guarantees covering 100% of the risk, except in the primary agricultural and fisheries and aquaculture sectors, where limits of EUR 100,000 and EUR 120,000 per enterprise, respectively, apply.

Maternity leave compensation is determined from the average base on which the persons were insured in the previous 6 months before the month when maternity leave began. The compensation is paid by the Croatian Health Insurance Institute at the expense of its own funds from the first day of maternity leave in the amount of the average base reduced by pension insurance contributions, income tax and surtax, until the child reaches the age of 6 months. After that, parents have the right to use parental leave for up to one year of the child's life every 3 months or within those 6 months to transfer the right to the other parent by agreement if it is the birth of the first and second child. In such a case, they are entitled to the amount of compensation for maternity leave, but the amount of compensation cannot exceed HRK 5,654.20. In the case of the birth of a third child or twins, the parents, according to the agreement, use parental leave until the third year of life of the child or children with a monthly compensation of HRK 2,328.20.

Due to the appearance of coronavirus, suspended transport, closed hotels, accommodation and catering facilities and all accompanying facilities, the business of travel agencies has been disabled. The money paid for package travel contracts, did not remain on the account of the travel agency in most cases, but was forwarded to hotels, other accommodation facilities, airlines, other carriers, etc. Many passengers are worried about whether and when they will be able to realize their paid package-arrangements and whether and when they will be able to get their money back, because they are no longer interested in paid package-arrangements.

In order to protect passengers in a way that allows them to realize the paid travel, and to ensure the continuation of business travel agencies, it was necessary to amend the Act on Tourism Services, aimed at overcoming the problem of unrealized package travel contracts in by issuing a voucher. Thus, the travel organizer instead of a refund issues to the traveller a voucher worth a paid arrangement valid for at least one year.

The authors of the article analyse some current, interesting and important issues referring to seasonal work in view of taxation, contribution and obligatory insurance of seasonal workers. Besides, the article includes a brief review of the employment contract for permanent seasonal jobs and a number of issues regarding status and legal position.

Due to the extraordinary circumstances caused by the COVID-19 disease epidemic, there are a number of questions how employers must enable their workers to exercise their right to annual leave in 2020. The author of the article therefore provides answers to current questions of annual leave such as whether the employee can be allowed a longer vacation than provided by the Labour Act, how to calculate the exact number of days of annual leave that belongs to the employee, whether the employee can give up annual leave. and many other issues.

This article discusses issues related to earthquake and downtime insurance. Answers to the questions of whether to insure against earthquakes and consequent damage due to interruptions are very important, especially due to the current situation in Zagreb and the surrounding area.

In accordance with their statutes, non-profit legal entities may perform certain economic activities with the aim of achieving their basic goals of establishment. In doing so, they may incur obligations from the point of view of the provisions of the VAT Act when they provide such services to persons from another EU member state or from third countries. For proper tax treatment when providing services, it is necessary to determine what type of service it is and what its tax position is. Non-profit legal entities are obliged to request VAT ID no. when services which are taxable, such as advisory services, are provided to taxpayers from another EU Member State. For services provided to taxpayers from third countries where a tax liability is transferred, it is also necessary to submit a VAT Form regardless of whether the service provider is in the VAT system or not. The difference arises only in the method of submission - small taxpayers are allowed to submit a VAT Form in paper form, and larger VAT payers must submit all forms exclusively electronically via the ePorezna system.

In public procurement procedures, one of the criteria for selecting an economic entity may be its technical and professional ability to prove that the economic entity has the necessary and technical resources and experience necessary to perform public procurement contracts at the appropriate level of quality. It is proved by references from the executed previous contracts.

The article presents the explanation of this condition of ability and presents the viewpoints of the persons addressed.

1. Pregled kretanja
2. Industrijska proizvodnja RH i EU-a
3. Potrošačke cijene
4. Turizam
5. Dolasci i noćenja turista
6. Prosječne mjesečne neto i bruto-plaće zaposlenih