Business entities engaged in economic activity in the Republic of Croatia are obliged to pay statutory contributions, fees, and membership fees. One of them is the membership fee for tourist boards. Below are details about the calculation and payment of membership fees to tourist boards for 2021.
The system of tourist boards, the structure, tasks, and manner of work of tourist boards, and the basic principles of financing and management are regulated according to the Law on Tourist Boards and the Promotion of Croatian Tourism. The said Law prescribes mandatory membership for all natural and legal persons who permanently or seasonally earn income in the area of a certain tourist board by providing tourism services, catering services, or performing activities that benefit from tourism or whose income is affected by tourism.
Who is obliged to pay the membership fee to the tourist board?
Obligors to pay membership fees to the tourist board are legal and natural persons who have their registered office, residence, branch, plant, or business unit in the local tourist board established following the law.
Who is exempt from paying membership fees to the tourist board?
Membership fees are not obligatory for legal entities that are financed with more than 50% of the budget of the Unit of local and regional self-government or the state budget.
For which activities is the membership fee paid to the tourist board?
According to the Law on Membership Fees in Tourist Boards, the activities for which the membership fee is paid to the tourist board are prescribed by groups and at a certain rate:
| GROUP | RATE |
|---|---|
| The first group | 0,14212 |
| The second group | 0,11367 |
| The third group | 0,08527 |
| The fourth group | 0,02842 |
| The fifth group | 0,01705 |
Accordingly, it is necessary to determine which group a particular activity belongs to. A list of all activities that are required to pay membership fees by groups can be found in the Law on Membership Fees in Tourist Boards.
If it is more favorable for the taxpayer, he may pay the membership fee by applying the rate prescribed for the activity performed by the legal or natural person mainly concerning other activities for which he is registered in the commercial court register, trade register, or other appropriate registers.
If the member of the membership fee provides catering services in the household or on the family farm, the amount of the membership fee depends on the number of beds in the room, apartment, or holiday home and the number of accommodation units in the camp and camp, or the capacity of the Robinson accommodation, following the regulations governing the performance of catering activities.
Also, it is important to mention that legal and natural persons who perform economic activity in assisted areas, pay a membership fee reduced by 20%.
How are the bases for calculating the membership fee for the tourist board prescribed?
For legal and natural persons who are liable to pay corporate income tax, the base is determined as income that these persons generate by providing services in tourism, catering services, or performing directly related tourism activities in business units in the local tourist board.
For corporate income taxpayers who determine their tax base in a lump sum, the base is determined as the total income from performing economic activity based on which he is a corporate taxpayer.
For taxpayers of income from self-employment who determine the tax base in a lump sum, the basis for the calculation of membership fees consists of the total realized collected receipts.
For each business unit outside the registered office of a legal and natural person, the rules are slightly different. Namely, the total income, i.e., receipt, is determined for them as the basis for calculating the membership fee. For a legal and natural person who determines the basis for calculating the membership fee for each business unit outside the registered office, the basis for calculating the membership fee is reduced by a part of its income, i.e., receipts, realized in business units.
What is the deadline for paying the membership fee to the tourist board?
The final calculation of the membership fee for legal entities engaged in economic activity is performed within the prescribed deadlines, and in the manner prescribed for the calculation and collection of income tax, on the TZ1 form. Legal entities are required to submit this form by May 2, 2022, together with the corporate income tax return.
The membership fee is paid to the Tax Administration in the municipality or city where the business unit is located. A separate base and total income for the calculation of membership fees are determined for each business unit outside the headquarters. If the activity is performed without business premises, the membership fee is paid in the area of the municipality or city where the activity is performed.
