Tax reliefs

You’re planning business growth, hiring, and investing in new machinery, software, or office renovations. You’re making a high profit and it’s frustrating to see how much income tax you have to pay to the government.

We at Happtory are here to help you pay less income tax.

If you’re purchasing equipment worth 150,000 EUR, you could pay less tax, up to 105,000 EUR, depending on where you invest and how large your company is. This tax amount will not be paid for a period of up to 10 years, depending on how well your business performs.

We will ensure tax savings for you, and the money you save can be reinvested into new investments or paid out to your account.

INVESTMENT PROMOTION ACT (IPA)

Tax incentives are the most well-known tool for encouraging new investments and are regulated by the Investment Promotion Act (ZOPU). This option functions by providing relief to entrepreneurs through a reduction in the corporate income tax (CIT) obligation, based on new employments and investment in assets. The amount of savings can be up to 75 % of the investment amount, depending on the size of the company and the location of the investment.

Investments and employment can be implemented over a period of 3 years. The investment can include the construction and equipping of a production facility, investment in machinery, IT and office equipment (setting up new workstations), company vehicles for business purposes, and intangible assets.

The timing of using the tax incentive depends on the tax base, and the savings can be used for up to 5 or 10 years (depending on the size of the company). The client can use the support after obtaining the Status of Support Holder and after investing a minimum of 50,000 or 150,000 EUR.

The fixed assets must remain in ownership for at least 3 years from the initial recognition in the balance sheet, but no shorter than the period of support usage. The number of employees must increase within 3 years from the start of the investment and be maintained for 3 years from the opening of the job position, but no shorter than the period of support usage.

Our support covers the phase of preparing documentation for the application, as well as the creation of annual reports during the implementation period of the project and the use of the tax incentive.

Ne postoji specifičan rok za prijavu na ovu opciju, ali ključno je podnijeti prijavu prije prve nabave imovine ili prije prvog zapošljavanja vezanog uz investicijski projekt.

Other options

Non-taxable payments

Did you know that you can pay your employee a minimum of 5,700 EUR annually in non-taxable payments? – This amount costs you the same as the employee can receive! For example, it’s surely new to you that you can cover the employee’s rental accommodation expenses without limitations!

Non-taxable payments are:

  • holiday bonuses (Christmas bonuses, vacation allowances, so-called “regres”), etc.
  • rewards for work results and other forms of additional employee compensation (extra salary, bonuses added to the monthly salary, etc.)
  • rewards for years of service (from 10 years to 40+)
  • severance pay upon retirement
  • gifts to children under the age of 15
  • support for newborns
  • employee meal expenses (lump sum allowance, based on documentation…)
  • employee accommodation costs incurred during the employment relationship with the employer
  • etc.

How can Happtory help you achieve tax relief?

If you don’t know where to start or simply don’t have the time, reach out to us with confidence! Our service includes finding and analyzing available tax reliefs to identify the optimal ones for you. We will advise you on preparing all accompanying documentation to claim your right to savings and assist you in the documentation preparation. We will educate you on potential savings on corporate income tax based on investments, non-taxable payments, the cost of purchasing cars on leasing, etc., and alert you to common mistakes.

PREPARATION OF THE IPA APLICATION
MANAGEMENT OF THE IPA PROJECT

If you need us in the phase of preparing the IPA application, we will:

What are your benefits?

Take a look at the current calls for grants for entrepreneurs

We bring you an overview of published and upcoming calls. In our database, you can also find closed calls that can serve as inspiration for you.

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