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Croatia Extends Fixed Cost Support for COVID-19 — Orbitax Tax News & Alerts

Croatia's Tax Administration has updated its tax information page for COVID-19, including the continuation of measures that provide fixed cost support for February 2021. Fixed cost support was previously provided for December 2020 and January 2021.

The fixed cost support is available for businesses that have needed to suspend operations or experienced a decrease in revenue of at least 60% in February 2021 as compared to the same month in 2020. For businesses that started in 2020, revenue is compared to November 2020. As with the fixed cost coverage provided for prior months, where the revenue decrease is between 60% to 90%, the amount of qualifying fixed costs covered under the measure will be equal to the percentage decrease. Where the revenue decrease exceeds 90%, qualifying fixed costs will be covered in full. Application for the fixed cost support for February 2021 should be made via the ePorezna portal from 15 March to 15 April 2021.

In addition to the fixed cost support measures, the updated tax information page also includes a link to guidance for transfer pricing considering the impact of COVID-19. The guidance is essentially a Croatian-language version of the OECD guidelines for COVID-19, including guidance on comparability analysis, losses and allocation of costs for COVID-19, state aid programs, and advance pricing agreements.