A profit income taxpayer who did not generate revenues greater than HRK 7,500,000.00* in year 2020 may determine the tax base for year 2021 according to the cash method of accounting.
CONDITION: such determination of the tax base can be used only by a VAT taxpayer who applies the taxation procedure according to collected fees.
A taxpayer who intends to determine the tax base for year 2021 according to the cash method of accounting, must submit to the Croatian Tax Authorities a statement on the change in the method of determining the tax base by 15 January 2021 the latest. Determination of tax base according to the cash method of accounting must be maintained for at least three taxation periods if the prescribed conditions have not changed.
A taxpayer who in year 2021 no longer meets the conditions for determining the tax base according to the cash method of accounting, or if he wants to change the method of taxation after three years, must notify the Croatian Tax Authorities by 15 January 2021.
* The amount of aids received to mitigate the negative consequences in the event of special circumstances do not affect the income threshold of HRK 7,500,000.00 for determining the tax base according to the cash method of accounting.
