Croatian business chamber seeks tax relief for Omiš fire victims

The Croatian Chamber of Crafts and Small Business (HOK) has called on the government and the Ministry of Finance to implement tax relief measures for entrepreneurs in Omiš affected by recent devastating fires. While acknowledging the government's announced aid as a crucial step, HOK emphasizes the need to expand tax relief to all small business owners and entrepreneurs whose operations were directly impacted.

Dalibor Kratohvil, president of HOK, stated that the chamber submitted concrete proposals to the government shortly after visiting Omiš, recognizing the urgency of the situation. He highlighted conversations with entrepreneurs whose businesses and equipment were severely damaged or destroyed, underscoring their immediate need for financial resources to rebuild and continue operations. "We are pleased that aid measures are being adopted quickly, and we believe it is justified to extend tax relief to all craftsmen and other entrepreneurs directly affected by the fire," Kratohvil said.

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We are pleased that aid measures are being adopted quickly, and we believe it is justified to extend tax relief to all craftsmen and other entrepreneurs directly affected by the fire.

HOK proposes a temporary exemption from income and profit tax prepayments for directly affected businesses, regardless of their sector. This measure would allow entrepreneurs to redirect available funds toward damage repair, equipment procurement, business resumption, and job retention. The chamber argues that current tax prepayments, based on pre-fire performance, place an additional burden on businesses experiencing reduced or halted operations.

Furthermore, HOK is advocating for a special tax treatment of donations in goods and services intended for fire relief. They request that Value Added Tax (VAT) not be calculated or paid on donations directly linked to aiding victims and recovering from the Omiš fires, provided specific conditions and documentation are met. HOK notes that a similar initiative was positively received by the relevant ministry following devastating earthquakes, facilitating easier participation for businesses wishing to contribute materials, equipment, transport, or services.

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These funds will be used to restart businesses and preserve jobs.