The completion of financial reports for specific interperiods during the year or preparation of monthly reports represents the need of a company for specific information rather than a legal obligation.The legal obligation comprises provision of financial information for statistical needs including the case when a company pays the profit, makes advance payments of profit or if the level of business activities decreases, which requires a reduction of advance payments of profit tax. These are all the reasons for updating the records and systematization of the data which are to be entered into the profit and loss account and the balance sheet as formal financial reports of the accounting inter-period. The article presents for the first time the changed formats of the above stated reports as well as other regulations important for understanding of these issues.
Autori: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev. Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač. Mr. sc. Šime GUZIĆ, dipl. oec. i ovl. rač.
The main herd is a part of the long term tangible assets in agricultural production, which due to its nature has principally a significant value at the end of its utilisation period. Its net value is not depreciated to its total amount, which is the case with some other types of fixed assets. Therefore, it is necessary to adjust the accounting policy of depreciation of the main herd to the specific regulations of the corresponding accounting standards and the provisions of the Profit Tax Act.
The long term tangible and intangible assets are revaluated according to the provisions of the Croatian Standard of Financial Reporting no. 6 and the International Standardof Financial Reporting no. 5 i.e. International Accounting Standard no. 38. The revaluation reserves emerged from the revaluation of the long term assets are recorded as a part of the equity until its realization. The revaluation of the long term tangible and intangible assets can be carried out in two ways. The first one comprises the revaluation of the gross book value of the assets and the second one is the revaluation of the net book value of the assets.
The Act on Consumer Protection regulates the consumers’ rights when buying products and services and the obligations of the companies upon selling such products and services. The companies which provide repair services of goods are in specific cases obliged to write a preliminary calculation of costs and a work order. In the case they receive an advance payment from an individual person, after which follows the sales of the products and services in a certain period of time, it is necessary to calculate and pay interests. The article defines what is to be done and recorded in book-keeping when the products are changed in the warranty period or due to some material flaws, as well as what is to be taken into account upon price reduction and promotional sales of products.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Upon the exports of samples the accounting and taxation procedures differ from the main sales agreement. Samples are in principle the goods of a small value and in some cases they can represent a foreign property. They are imported for the presentation aimed at ordering the goods which should be identical as the presented samples.
Bankruptcy implies the lack of success and a possible business failure. This is the last step before closing up of a company and its removal from the court register. How ever, bankruptcy can mean a new beginning to some companies, because a good bankruptcy plan can overcome a difficult situation in which a particular company is and the company thus continues its business operations. The bankruptcy procedure can be initiated by the creditors in order to collect their receivables or the debtor. The bankruptcy trustee plays the key role since he/she carries out the bankruptcy procedure controlled by the judge and creditors. This article deals with the legal and accounting issues of the bankruptcy procedure.
Non-profit organizations which record their business events within the non-profit accounting system have to apply a new accounting system from 1 January 2008, which significantly differs from the old one which was applied until 31 December 2007. Such organizations apply a single-entry or a double-entry book-keeping. The organizations which apply a double-entry bookkeeping have to prepare and submit for the first time the financial reports which are different from those applied until 31 December 2007.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Since 1 July 2008 the amount of the untaxable part of the salary (personal deduction) has been increased from1,600.00 HRK to 1,800.00 HRK per month pursuant to the provisions of the Act on Amendments of the Acton Profit Tax. The increased (personal deduction) is to be applied upon the calculation of income tax from each salary paid after 1 July 2008 no matter which period the salary refers to. This article deals with the changes of (personal deduction) which has resulted in the change of the tax categories including other issues connected to the amount of (personal deduction).
In the field of law the employee’s right to a bonus during the year and on which occasion is regulated by some legal documents. The Labour Act does not regulate this right directly. However, the right to an annual bonus on some occasion , as all other rights in a labour relation, is determined by some legal document in the field of labour law, which includes collective agreements, labourrule books, contracts on employment, etc. If such a rightis not determined in any of the above stated documents, the employer may solely decide on it. The existing tax regulations support such a decision too.
Autori: Mr. sc. Desanka ŠEGIĆ, dipl. oec. Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The Act on Minimum Salary has been published and is to be applied from 1 July 2008 on the salaries referring to July and on. The employers who pay the salaries in the current month for the previous month are obliged, if the salaries are lower than the minimum salary, to apply the provisions of the above stated Act in August upon payment of salaries for July. The Act on Minimum Salary determines the amount of the minimum salary of 2,747.00 HRK for the employees working in the Republic of Croatia, the way of its complianceas well as the supervision of the applied provisions of the above stated Act including the measures to be taken in case of non-payment of minimum salaries to an employee.
Foreign citizens have the right to require a refund of the calculated VAT on the goods purchased in Croatia, but not on the services. The realization of the VAT refund requires the fulfilment of the determined conditions. One of the most important conditions is that the value of the purchased good sper invoice needs to amount to more than 500.00 HRK. Foreign citizens can exercise their right to a tax refund directly from the seller, i.e. in the retail sales where the goods can be purchased or from the middleman. The seller may reduce the VAT amount by the tax obligation. This article deals with the specifics of VAT return to foreign citizens and the conditions which should be fulfilled on this occasion.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
In 2008 all the companies and other legal persons who independently and permanently perform business activities aimed at making a profit, as well as physical persons engaged in crafts and free professions and other activities taxable as crafts activities, who have become profit tax payers, are obliged to effect a monthly advance payment of profit tax. The amount of the advance payment is determined in proportion to the 1/12 of the tax obligation per annual calculation for the pervious year. Only based on the written request submitted by a tax-payer the authorized tax office of the Tax Administration can define new amounts of monthly advance payments or determine some other period of making advance payments.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
The Act on Amendments of Customs Act, which came into effect on 1 July 2008, comprises the provisions referring to customs administration as well as the important alteration regarding VAT payment upon import of goods. Pursuant to the Act on Value Added Tax the tax obligation emerges on the date of the emergence of the tax liabilities.The VAT is calculated and collected by the customs office which conducts customs procedures including the calculation of the customs liabilities according to the regulations on calculations and collection of the customs liabilities.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Transfer prices are used not only by large companies but also the small and medium-sized ones. Therefore, the issue of transfer prices has become an everyday task for company inspectors. This article deals with the documentation of transfer prices since the transfer prices which are not documented can have inconvenient consequences at tax administration.
Autori: Doc. dr. sc. Marian-Raimund WAKOUNIG Mr. sc. Ivica MLADINEO, dipl. oec. Johanes Petar STIPSITS
Tax consulting can be defined as a professional provision of expertise and other corresponding services referring to tax issues. The demand for tax advice and its provision is almost as old as the taxation it self. The need for the persons who will professionally represent the interests of tax-payers has increased along with the number and variety of tax forms and tax burdens. In the Republic of Croatia the issue of tax consulting is determined by the Act on Tax Consulting.The article deals with the position of tax consulting in the world, especially in the EU.
The Republic of Croatia is in the transitional phase and about to enter the European Union. The important pre-condition for its entry into the European Union is the compliance of the Croatian legislation with the regulations and legal practice of the European Union (Aquite communitaire).One segment of compliance of the Croatian legislation refers to the tax law. The author of the article explains the tax position of a subsidiary in the Republic of Croatia and the European Union.
The seller is obliged to fulfil contract provisions to the consumer pursuant to the Act on Consumer Protection and the regulations of the Obligatory Relations Law, which means that he/she should provide goods or services stated in the contract in the way and under the conditions stipulated in the contract, if it has not been stated otherwise, and at the price which the seller has determined and presented to the public. The product or service stipulated in the contract must have a contracted or regulated quantityand quality without any material flaws. If a product warranty has been delivered to the consumer, the product must be flawless within the warranty period.
