This article provides information on activities and adjustments in the process of replacing the Croatian kuna with the euro. It was made on the basis of the proposal for the Act on the Introduction of the Euro, which was in public consultation. Accordingly, such a fact should be taken into consideration because some parts of the legal provisions could be amended when they enter into force. This Act will also change 46 acts and about 70 bylaws, which is not presented in the article because the dynamics of repealing certain regulations by passing the above stated Act is not known.
The development of new technologies and the emergence of new products on the market requires new knowledge from accountants. One of the areas that accountants are increasingly encountering is cryptocurrencies as more and more entrepreneurs are acquiring or creating cryptocurrencies. The aim of the article is to explain the basic concepts related to cryptocurrencies and how they are accounted for by corporate profit taxpayers.
Autori: Jasna VUK, dipl. oec. i ovl. rač. Kristijan KOZARČANIN
Planting olive trees and olive production from an accounting point of view is an agricultural activity. In the article, the author explains the accounting for the acquisition of agricultural land and the planting of olive trees, i.e. defines the costs that should be included in the value of such a plantation and further determination of the value of these assets. In addition, the article defines the accounting for olive and olive oil production in accordance with the requirements of CFRS 17 and IAS 41 and CFRS 10 and IAS 2, respectively.
Autor: Dr. sc. Tamara CIRKVENI FILIPOVIĆ , prof. vis. šk. i ovl. rač.
Franchising is a business model in which the franchisee takes over the way of business performance from the franchisor, i.e. the use of the trademark and knowledge and experience of the franchisor in performing a particular service or in the production and / or sale of a product, paying the franchisee for such use. What are all the rights and obligations of the parties to the Franchise Agreement, what types of franchise fees are usually contracted and what is their accounting and tax position from the point of view of franchisors and recipients, are the topics discussed by the author in this article.
Autor: Mr. sc. Snježana BRKANIĆ PONGRAČIĆ , dipl. oec. i ovl. rač.
This workshop explains the accounting for the construction extension in accordance with the requirements of accounting standards. According to the requirements of CFRS 6 or IAS 16, the cost of extension construction includes all costs related to the construction of the building extension and putting that part of the building into operation. The workshop also provides an example of accounting for the extension of a building on the example of business practice.
Autor: Dr. sc. Tamara CIRKVENI FILIPOVIĆ , prof. vis. šk. i ovl. rač.
The cash flow statement can be prepared using the direct or indirect method. In the supplement to the RRiF Journal no. 1/22 - Compilation of financial and tax reports in 2021 for entrepreneurs- we have presented the compilation of cash flow statements using the direct method, and in this article we give an example of compilation using the indirect method.
The topics of this budget workshop are direct settlement of the obligation to the subcontractor in the public procurement system and payment of the assumed debt on behalf of another budget person. Without an additional legal basis, the contracting authority is obliged to pay the subcontractor directly for the work performed by him/her in the execution of the public procurement contract.
When a debt is paid on behalf of a budgetary person, it must be repaid within the deadline agreed between the debt taker and the budgetary person, and this relationship could result with the borrowing by the budgetary person if he/she has to repay it to the debt taker.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
The author reminds non-profit organizations on the obligation to compile and submit annual financial statements, i.e. financial statements for the period from 1 January to 31 December 2021, and provides instructions on which reports should be prepared and to whom they should be submitted. It is to be noted that the Ministry of Finance also publishes instructions for their submission on its website, which was not posted at the time of writing.
The following relations are recorded in this practicum: realization of the substantive right of the worker, borrowing of the non-profit organization and its endowment. The nature of the expenditure is not affected by the tax position, the non-profit organization may borrow according to its own rules in compliance with certain implementing provisions of the general non-profit system and in some circumstances may include the received gift after the reporting period.
Autor: Mr. sc. Nada DREMEL , dipl. oec., ovl. rač., ovl. rev. i porezni savjetnik
Natural persons who perform economic activity, and are liable to income tax, should pay contributions for 2022 on a minimum basis of HRK 10,490.70. They can only pay contributions, but they can also pay a salary. How they calculate contributions and taxes in each of these situations is shown in a number of examples in the article.
Autor: Iva MARJANOVIĆ KAVANAGH , dipl. oec. i ovl. rev.
Contributions and income tax on salaries paid according to the court judgment, settlement during court proceedings, settlement concluded with the competent state attorney's office in proceedings for peaceful settlement of disputes or settlement concluded in conciliation proceedings in individual labour disputes under the law governing conciliation proceedings and in proceedings before the competent civil service courts, are to be calculated in the manner and at the rates determined and applied in the period in which those salaries were to be paid.
The condition for such calculation of contributions and income tax is that salaries are sued in gross amount, which means that they contain contributions for pension insurance in I. and in II. pillar, which are considered salary contributions, income, surtax and net salary.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Capital gain represents the difference between the sale and purchase value of financial assets, and capital gains tax is the tax to be paid on the difference between the value of those assets. Income from cryptocurrency trading are subject to capital gains tax. If there are elements of income tax calculation, the increase in the value of financial assets that were disposed of during 2021 is taken into account. On the other hand, other income is determined for receipts generated by cryptocurrency mining. The authors write about that in this article.
Autori: Mr. Anja BOŽINA , dipl. oec. i ovl. rač. Iva MARJANOVIĆ KAVANAGH , dipl. oec. i ovl. rev.
Within the profit tax system, there is still the possibility of applying the cash principle in determining the tax base for taxpayers whose total income does not exceed HRK 7.5 million. They file a corporate profit tax return on the PD-NN Form. Taxpayers who, at their own request, started to apply the cash principle method in one of the previous years, are obliged to continue this for the next three tax periods, provided that their total annual income does not exceed HRK 7.5 million. If the third year of application of the cash principle has expired, the tax payer could by January 15, 2021 submit to the Tax Administration "Statement on changing the method of determining the tax base" and return to the calculation principle of calculating the income tax base and determine the tax return profit for 2021 on the PD Form.
Autor: Dr. sc. Đurđica JURIĆ , prof. vis. šk. i ovl. rač.
The payment of income tax during the year is considered the payment of an advance income tax. The annual income tax liability is determined by the Tax Administration in a special procedure on the basis of data collected on the income of natural persons through the JOPPD Forms, tax cards and other available information. The Tax Regulations highlight the categories of physical persons who can certainly expect a decision from the Tax Administration after a special procedure, namely: young people, pensioners and persons residing in the City of Vukovar and local self-government units classified in Group I by level of development. If, after the end of the tax period (calendar year), a physical person finds that during the payment of salary or other receipts during the tax period not all tax reliefs were recognized that could reduce his/her annual tax liability, he/she can submit ZPP-DOH to the Tax Administration. ) which the Tax Administration, with credible evidence, will take into account and determine the annual tax liability or make a refund of overpaid tax.
A taxpayer, the resident in the Republic of Croatia is obliged to declare a foreign income in the Republic of Croatia in the determined period, regardless of whether the tax has already been paid abroad and regardless of whether there is a tax obligation in the Republic of Croatia. However, as of 1 January 2020, the provision of the General Tax Act (Official Gazette, No. 115/16 - 42/20) has been in force, on the basis of which voluntary declaration of receipts from abroad from previous tax periods enabled without charging interest due on taxes and contributions and without imposing a fine for a misdemeanour due to their late reporting, and the declared receipt will be taxed according to the regulations in force on the day of voluntary reporting.
The submission of a statistical report on overdue but uncollected invoices is still mandatory. The persons liable to compile this report are taxpayers entered in the VAT register who, as at 31 December 2021, recorded due and uncollected receivables for the supply of goods and services.
The above stated report is to be submitted to the Tax Administration electronically on Form OPZ-STAT-1 within the deadlines for submitting the income tax return or profit tax return.
In the article, the author writes about the persons obliged to submit the report, explains the manner and gives an example of filling in the Form OPZ-STAT-1.
The provisions of the Act on Administrative Cooperation in the Field of Taxes determine the obligation and manner of reporting by taxpayers to the Tax Administration on cross-border arrangements. The deadline for submitting information is 30 days from any of the events related to these arrangements, i.e. one month from the end of the quarter in which the information became available.
Autor: Dr. sc. Šime GUZIĆ , viši pred. i ovl. rač.
All seafarers (residents) who earned income from self-employment on the basis of work on board during 2021 must submit an annual income tax return. However, depending on the number of days spent in international navigation, they are obliged or not to settle their obligations based on income tax from self-employment. The provisions of the Ordinance on Income Tax have been amended accordingly.
The use of tax benefits contrary to the purpose of the law through the institute of lump sum sole trade have been observed. Namely, in certain cases, instead of concluding a contract on non-self-employment, the establishment of trades that determine income in a lump sum is encouraged and compensations for work that has the characteristics of self-employment are paid through payments to lump sum sole trades. Such actions, motivated solely to use the method of calculation intended for lump sum sole traders, i.e. paying as little income tax as possible regardless of the actual economic situation in which the transactions take place, despite the nature of non-self-employment, constitute the use of tax benefits contrary to the law.
The possibility of paying the tonnage tax instead of the profit tax is regulated by the Maritime Code. Taxpayers who want to pay tax on the tonnage of a ship must first report to the Ministry of the Sea, Transport and Infrastructure with the presentation of appropriate evidence of compliance with the determined conditions. For 2021, the tonnage tax can be paid only by a company that has submitted a report to the Ministry of the Sea, Transport and Infrastructure by 30 June 2020 that it will pay the tonnage tax instead of the profit tax, as regulated by Art. 429.c. § 2 of the Maritime Code.
Autor: Dr. sc. Šime GUZIĆ , viši pred. i ovl. rač.
Default interest rates and the maximum contractual interest rates are determined for each half-year period. The basis for calculating default interest is the reference interest rate determined by the Croatian National Bank.
The downward trend in the reference interest rate continues, so the rates of default and maximum contractual interest rates in the first half of 2022 are lower than in the previous period.
In 2022, the bases on which contributions are calculated and paid are determined according to the average gross salary paid per employee of legal entities in the Republic of Croatia in the period January - August 2021. According to the publication of the Central Bureau of Statistics, the average salary paid in the above mentioned period was HRK 9,537.00. By applying the coefficients published in the Contributions Act, the bases for all compulsory insured persons in the Republic of Croatia on all insurance bases were calculated according to that salary. The beginning of the application of the new bases is January, with the due date for the payment of contributions in February 2022.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Who is the author, as a natural person, in the light of the new regulation governing copyright and what is significant for that person from a practical point of view, is summarized in this article.
The Child Allowance Act (Official Gazette, No. 94/01 - 58/18, hereinafter: the Act) defines the child allowance as a cash benefit used by a parent or other person to whom the child is entrusted for custody and upbringing, and to support the maintenance and upbringing of children. In order to exercise the right to child allowance, an extramarital union is equated with a marital union. If both parents can exercise the right to child allowance, they are obliged to agree which of them will exercise this right, and the right to child allowance can be exercised only on one basis. Child allowance may not be subject to enforcement or insurance, except according to a court decision for the purpose of upbringing in favour of children for whom this allowance is realized.
The right to child allowance is acquired and exercised depending on the number of children and the amount of total income of members of the beneficiary's household and other conditions determined by the law. Read more about it below.
The authors of the article provide an overview of the amendments to the Act on Obligations, which were encouraged by the transposition of Directive (EU) 2019/771 and their transposition into the Croatian legal order. The amendments have affected the areas of material defects and guarantees for the correctness of the sold item (guarantee), which led to certain changes in the buyer-seller relationship, i.e. in their mutual rights and obligations. Due to the fact that technological advances have led to further growth in the market for goods often referred to as electronic goods, and due to the growing number of such devices and the increasing use of them by consumers, Directive 2019/771 contains new rules applicable to buying and selling of the so-called things with digital elements, which is the topic of this article.
Autori: Hana VELAJ, mag. iur. Goran TOPIĆ, mag. iur.
When a legal entity is deleted from the Court Register of Companies, it is not possible to return it to registration, so serious problems arise if it is determined after deletion that it had property. As there were a number of such cases, the notions of liquidation and bankruptcy estate were introduced, which solve the problem of the property of such a legal entity, because the previous holder of property rights ceased to exist. Therefore, the first step in resolving the problem is to determine whether the deletion occurred after the bankruptcy proceedings or whether it was deleted from the court register by the entity based on the rules of the Court Register Act.
In the article, the author analyses the procedures in case of deletion after the bankruptcy procedure and deletion due to non-submission of annual financial reports.
Political parties, independent representatives and members of the representative bodies of the local self-government elected from the list of the group of voters are obliged to submit an annual financial report by 1 March 2022. If they do not submit it to the State Election Commission and the State Audit Office, they are subject to administrative and/or punitive sanctions.
