Weekly Tax Consulting Tips from Confida
Confida is international tax advisory, consulting and accounting company with a network of companies in Austria and South East Europe making it a strong partner both locally and internationally. On this page, you will find useful information regarding payroll outsourcing, taxes, finances and other relevant topics that we provide services for!
Tax treatment of donations for earthquake mitigation
Donation Donors

From the aspect of personal income tax and profit tax:

1. Legal and natural persons who are liable to pay income tax, for donations given in kind or in cash, may determine tax-deductible expenses up to the amount of 2% of the income realized in the previous year.

2. Personal income taxpayers, taxpayers who are receiving income from self-employment and other citizens, for given donations in kind or cash, can increase their personal allowance up to 2% of receipts by submitting the form ZPP-DOH or annual income tax return. When submitting the form or income tax return, a certificate of donation or a copy of the cash transfer to the state budget account is required.

This applies when submitting annual profit income and personal income tax returns for 2020 and 2021, i.e., for all donations that will be given by the end of 2021.
Donation recipients

Recipients of donations, i.e., natural persons who will receive donations for destruction and damage of property:

- from local authority units based on special regulations; or
- from his employer, provided that donation is provided to all employees who have suffered damage,
the gift received will not be considered as income.

A donation received will also not be considered as income if it is collected in:
1. humanitarian actions; or
2. publicly announced actions.

If, as a legal entity, you make a donation in kind or in cash to natural persons who are not employees of your company, the same will not be considered as income only if the above conditions are met (1 or 2).

Donations for health needs will not be considered as income either, provided that the payment of incurred expenses is made to the giro account of the recipient of the gift or health institution and based on authentic documentation. If the donations received are not entirely spent for the health needs of the recipient of the donation, the remaining part of the donation will be considered a taxable income.
Value Added Tax

The amendments to the Ordinance on Value Added Tax also prescribes exemption from VAT in case of donations for the elimination of a catastrophe caused by an earthquake.

Taxpayers registered for VAT are exempt from paying VAT on supplies of goods and services performed without compensation or counter-performance and have the right to deduct input tax for donated goods or services performed without compensation or counter-performance. The exemption applies to all donations of goods and services provided from December 2020 until the end of year 2021.
Donations of goods from other EU Member States are not subject to VAT in the Republic of Croatia.

The VAT exemption does not apply to the procurement of goods and services from donated funds.

The import of goods obtained free of charge to meet basic human needs, imported by state, humanitarian and charitable legal entities and institutions, is exempt from VAT.

The import of equipment sent from the outside of the European Union free of charge to the above organizations and institutions to meet their operational needs and achieve their humanitarian goals is also exempt from VAT.
Porezni tretman donacija za ublažavanje posljedica potresa
Davatelji donacija

From the aspect of personal income tax and profit tax:

S aspekta poreza na dohodak i poreza na dobit:

1. Pravne i fizičke osobe koje su obveznici poreza na dobit, za dana darovanja u naravi ili novcu mogu utvrditi porezno priznate rashode do iznosa 2% prihoda ostvarenog u prethodnoj godini.
2. Fizičke osobe koje su obveznici poreza na dohodak i osobe koje ostvaruju dohodak od samostalne djelatnosti te građani, za dana darovanja u naravi ili novcu mogu uvećati svoj osobni odbitak do visine 2% primitaka podnošenjem obrasca ZPP-DOH ili godišnje prijave poreza na dohodak. Prilikom podnošenja obrasca ili prijave, obvezna je potvrda o donaciji ili preslika naloga o doznaci u novcu na račun državnog proračuna.

Navedeno se primjenjuje prilikom podnošenja godišnjih prijava poreza na dobit i dohodak za 2020. i 2021. godinu, tj. za sve donacije koje će biti dane do kraja 2021. godine.
Primatelji donacija

Primatelji donacija, fizičke osobe koje potpore zbog uništenja i oštećenja imovine prime:

- od jedinica lokalne samouprave temeljem posebnih propisa; ili
- od svog poslodavca pod uvjetom da su potpore omogućene svim radnicima koji su pretrpjeli štetu
primljeni dar neće se smatrati dohotkom.

Fizičkim osobama se primljena donacija također neće smatrati dohotkom ako je prikupljena u:
1. humanitarnim akcijama; ili
2. javno oglašenim akcijama.

Ukoliko kao pravna osoba dajete donaciju u naravi ili novcu fizičkim osobama koji nisu zaposlenici Vašeg društva, isto se neće smatrati dohotkom jedino ukoliko su zadovoljeni gore navedeni uvjeti (1. ili 2.).

Dohotkom se neće smatrati ni darovanja za zdravstvene potrebe, pod uvjetom da je plaćanje nastalih izdataka za tu namjenu obavljeno na žiroračun primatelja dara ili zdravstvene ustanove te na temelju vjerodostojnih isprava. Ako primljena darovanja nisu u cijelosti utrošena za zdravstvene potrebe primatelja donacije, preostali dio darovanja smatrat će se oporezivim primitkom.
Porez na dodanu vrednost

Dopunom Pravilnika o porezu na dodanu vrijednost, propisano je i oslobođenje od plaćanja PDV-a kod donacija za otklanjanje katastrofe uzrokovane potresom.

Porezni obveznici upisani u registar obveznika PDV-a oslobođeni su plaćanja PDV-a na isporuke dobara i usluga obavljene bez naknade ili protučinidbe te imaju pravo odbiti pretporez za donirana dobra, odnosno obavljene usluge bez naknade ili protučinidbe. Oslobođenje se primjenjuje za sve donacije dobara i usluga obavljene od prosinca 2020. pa do kraja 2021. godine.
Na donacije dobara iz drugih država članica EU ne plaća se PDV u Republici Hrvatskoj.

Oslobođenje od PDV-a ne primjenjuje se na nabavu dobara i usluga iz doniranih novčanih sredstava.

Uvoz besplatno dobivenih dobara za zadovoljavanje osnovnih ljudskih potreba, koja uvoze državne, humanitarne i dobrotvorne pravne osobe i ustanove je oslobođen PDV-a.

Uvoz opreme koju pošiljatelj izvan Europske unije besplatno šalje navedenim organizacijama i ustanovama u svrhu zadovoljavanja njihovih operativnih potreba i ostvarivanja njihovih humanitarnih ciljeva je također oslobođen PDV-a.
Take a look at our newest blog entry regarding non-taxable income in Croatia!
Are there any areas of income that are exempt from taxation in Croatia? In the table below you can find a detailed overview of payments/reimburstments which are not included in taxable income.
Learn more
The question remains - to outsource or not to outsource?
One of the most cost-effective services SMEs can outsource are accounting services. Business owners focused on the growth of their companies know that there are many benefits of hiring a professional accounting service provider, which are:

1. Cost Savings - Hiring a professional accountant saves money simply by avoiding excessive operational costs for hiring, training, benefits etc. of in-house staff for the position of an accountant.

2. Efficient Use of Personnel - By outsourcing an accountant your staff can focus their time and energy on more important tasks such as your core services, revenue-generating processes, and production.

3. Focus on Business Development - If you minimize accounting tasks which are often a burden to senior staff, you can create an environment where they focus on activities which drive revenue.

4. Better Quality of Work - The services provided by a professional accounting company means you will receive services of the highest possible standard, as these companies rely adhering to strict standards and on upholding their reputation.

5. Reliability and Convenience - By choosing the proper accounting service provider you will be sure to have work which is done accurately and in accordance with your business' timelines.

6. Enhanced Security - By hiring an external accounting company, you will ensure the security and confidentiality of your data.

7. Professional guidance - An external accounting service will be sure to provide your business with professional guidance by staying on top of the latest software trends, accounting rules and regulations and will be able to inform you of any changes in the law which could potentially affect your business.

The question remains - to outsource or not to outsource? If you find that running payroll, tracking accounting and tax processes too demanding on your resources you should consider hiring an experienced accounting service provider to deliver cost-effective, efficient work of high quality that meets the needs of your business.
Get in touch with regional consulting experts at Confida today!
+385 1 4606 900 office@confida.hr
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