The recent changes of the Croatian Contributions Act affect the minimum basis for the payment of social security contributions for board members, directors and liquidators employed part-time (“part-time directors”).
It remains possible for a company employing a part-time director to pay their social security contributions on the base lower than the one prescribed for a full-time director (HRK 5,491.20 for 2019). However, Tax Authorities will at the year-end calculate the difference for payment based on the (minimal) annual contributions basis of 12*HRK 5,491.20, and the part-time director will be personally responsible for the settlement of this difference – not the company at which he/she is employed.
After these changes, the below options of mandatory social security insurance for directors remain possible, with special rules and minimum basis prescribed for each option:
- Directors employed full-time at the same company (minimum basis of HRK 5,491.20 for 2019)
- Directors employed part-time at the same company (minimum basis of HRK 5,491.20 for 2019)
- Directors insured on other basis – employed at another company, sole traders, etc. (minimum basis of HRK 5,491.20 for 2019)
- Directors not employed at the company where they act as directors, not insured on any other basis (minimum basis of HRK 8,448 for 2019)
Special rules apply to the foreign directors from other EU Member States and directors form the third countries.