Tax reporting and strategy

Are you a company where it would be more effective having the bookkeeping done completely or in part by certified accountants to allow you to concentrate more on your own business instead?
Do you not know what needs to be set up in the accounting system? Do you need an accounting professional’s assistance? Do you need your accounting readjusted?

Tax Management and Accounting Services (TMAS) in Croatia can offer you professional accounting, payroll and tax compliance services to meet your governance and regulatory obligations. This is a crucial field, in which failure represents not only a financial risk including financial and tax penalties and other sanctions, but also a serious business risk, as it can damage a group's reputation with the authorities and the public.

Your situation

  • You want improved control of your compliance issues, risks and opportunities in Croatia
  • You have limited in-house tax/compliance financial administration resource, or want to free up an in-house resource to focus on higher value-adding activity
  • You need to comply with a growing, and more visible, regulatory burden
  • Your human resources and payroll functions have been centralized and/or you are resource-constrained

How we can help?

We can help you manage your compliance issues, risks and opportunities, giving you a fully integrated service.

  • Preparation of statutory financial statements in compliance with valid Croatian legislation
  • Reconciliation and reporting in US GAAP or IFRS per request
  • Co-ordination of bookkeeping and statutory financial statements for your operations abroad
  • Preparation of reporting according to the client’s individual needs
  • Setting up of account mapping between statutory bookkeeping and managerial reporting

 

The following scenarios are giving rise to accounting needs in companies today:

  1. Companies establishing a streamline finance and accounting function, spending less time on local statutory financial statements, local statutory accounting and other compliance requirements.
    This is often manifested in companies embracing one or more of the following:
    • downsizing of local finance and accounting functions
    • cost reduction activities
    • primary focus on parent company (e,g US, IFRS) GAAP
    • use of a shared service centre to manage all local compliance - accounting and tax
  2. Initial expansion into Croatia or other CEE countries.
    In these situations it may be uneconomic to establish their own accounting function.
  3. Resource pressure in finance and account functions as a result of a significant business change e.g. merger, acquisition, disposals.
    Companies with an existing finance function under pressure, leading to a temporary requirement for highly qualified skilled accounting resource to provide support.

How we can help you?

We can provide advice and guidance, outsource some or all of your accounting services or provide you with a member of our team to help you make sure that you're meeting your company accounting needs.

Outsourcing of accounting function:

Using an established team of qualified accountants operating in Zagreb, we can provide the following outsourced services:

  • preparation and filing of local statutory financial statements
  • bookkeeping and preparation of monthly management accounts, handling indirect taxes and other taxes
  • preparation of reporting according to the client’s individual needs
  • trust accounting, and
  • coordination of the delivery of cross-border accounting services within CEE or globally.

In providing these services, we follow tried and tested procedures, using standard processes and templates, specific accounting technologies (Microsoft Dynamics NAV or local software) all of which aid the overall efficiency.

We have an established approach over the planning, execution and completion phases of the production, audit and filing of SFS, which is known to assist with managing companies’ auditors and contributing to keeping audit costs under control.

Fees for routine services are fixed based on complexity of assignments and a number of key assumptions.

How does this help you?

  • Competitive fixed fees aids cost control and budgeting.
  • Quality accounting deliverables.
  • Contribution to increasing overall efficiency of local accounting.
  • Audit fees controlled
  • Risk of late filing mitigated.

Rules of the calculation of the direct and indirect taxes are changing every year. It is challenging to keep your finance staff be up to date in every rules. Spending on continuous trainings can mean a high cost, and the tax risk is also significant.

Our compliance team offers you flexible solutions where you can ensure, that your taxes are managed in an effective and professional way. We are ready to prepare your tax calculations and relevant tax returns. We are doing our best, to make sure, that our clients maximize their tax reduction possibilities while they remain fully compliant with the latest rules. We are also ready to review the tax calculations made by your tax team or other providers, to make sure that the figures are in accordance with the local requirements.

CIT and related tax compliance

  • Preparation or review of the calculation of the Corporate Income Tax, Local Business Tax or related other taxes
  • Preparation of the related tax returns
  • Submission of the tax returns to the Tax Authority
  • Group status reporting
  • Preparation and review of deferred tax computations (US GAAP or IFRS)

VAT compliance

  • Preparation or review of the calculation of the periodic VAT liability
  • Preparation of the VAT return
  • Preparation of the EC sales and purchases list
  • Preparation of the Intrastat report
  • Electronic filing of the tax returns to the Tax Authority

Planning to establish an affiliate in Croatia, but you are not aware the local procedures?

PwC can assist you during the company registration or deregistration related procedures in close cooperation with our legal team. We are aware of the necessary steps and we are happy to assist and guide you through the processes in the most time and cost effective way.

It is always a challenge in a company’s life, when they get a call from the Tax Authorities. They have country specific strict rules and processes, unique behaviour. Language issues can occur too.

How can we help?

PwC has deep experiences in all kind of Tax Authority audits in every fields of taxation. During the years we established good relations with the Tax Authority, became aware of their processes. We help you in the language issues, correspond with the authority, translate your documents if necessary and present them to the Tax Authority in the proper way, which helps to accelerate the processes. We have great records of successful tax audits, where we defended the interests of our clients.

Local payroll and benefit rules are very complex. There are various taxes on employees’ salary and benefits. It is essential to deal with the rules in a proper way, because significant risks and penalties can arise from the improper payroll processes.

PwC can offer you a professional and effective payroll service package regardless the size of your company. We are happy to work with you even if you have only one employee, but our team has experience performing payroll services for larger companies with hundreds of employees or more.

  • Performing monthly recurring payroll
  • Preparation of payroll related tax calculations
  • Preparation and submission of payroll related tax returns
  • HR administration
  • Review of payroll related tax returns prepared by your own provider periodically
  • Preparation of documents for booking payroll
  • Preparation of payment orders for salary payments to employees and obligatory payments to institutions
  • Payments of salaries and obligatory payments to institutions via internet banking

Annual payroll processing

  • Annual personal tax advance reconciliation for employees
  • Preparation of annual personal tax advance reconciliation for the Tax Authorities
  • Preparation of annual withholding tax reconciliation for the Tax Authorities
  • Preparation of employee statement of remuneration
  • Amendment of the employees’ statements for personal income tax purposes for the current and new calendar year

Communication with the authorities

  • Registration of new companies at the Health Insurance Offices, Social Security Offices and Tax Authorities
  • Assistance during inspections performed by these authorities

Other payroll projects

  • Payroll system setup
  • Assistance with selection and implementation of payroll system
  • Readjustment of payroll
  • Support with resolving payroll issues of a methodological nature
  • Payroll consultancy and interpretation of payroll legislation
  • Employee benefits consultancy

Not pleased with your current accountant’s proficiency, reports are not provided to you on time or you are not confident in their accuracy?

We are able to help you by providing the following:

  • Setting up of the accounting system in a new accounting unit
  • Assistance with selection and implementation of the accounting system
  • Reorganization of the accounting system
  • Readjustment of bookkeeping
  • Support with resolving accounting issues of a methodological nature
  • Accounting consulting and interpretation of accounting legislation
  • Provision of a certified accountant in the event of a temporary absence of your specialist
  • Setting up of internal accounting processes and preparation of internal accounting guidelines
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