Long-awaited Cro Card Finally Coming to Life Next Year?

Daniela Rogulj

The fourth round of the tax reform by Finance Minister Zdravko Marić has officially revealed that the long-awaited Cro card will finally come to fruition, starting January 1, when other tax news should come into effect. 

Tourism Minister Gari Cappelli also confirmed the news, announcing that from January next year, employers will be able to “pay” a maximum of 2,500 kuna to workers by a special voucher, intended for consumption exclusively within Croatia and in periods outside the peak season, reports Splitski Dnevnik on July 30, 2019.

“That’s right, the ‘Cro Card’, which will go through a public consultation with the complete tax reform, should begin in January, and we are particularly pleased with its purpose to encourage spending in the offseason, between October and April, and to stimulate consumption on the continent, although no offer on the coast will be excluded from it,” Minister Cappelli announced.

And it will work as follows: Employers will be able to pay a maximum of 7,500 kuna tax-free per worker annually, for Christmas, annual leave, bonuses and other benefits, and the tax reform will now allow up to 2,500 kuna of that amount to be paid to workers through the ‘Cro card’ voucher. 

In order to avoid confusion, Cappelli explained that the Cro card would not actually be in the form of a plastic card, but would probably be resolved in the form of a paper voucher, a document that each employee would be able to print out through their personal account and then use in businesses across the country.

More specifically, the voucher can’t be used in all businesses, but only those who will be included in this special program. Thus, there will very likely be unique labels on the doors of businesses so that citizens can know who is participating in this payment method.

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