Ecovis in Luxembourg
Auditors, accountants, tax advisors in Luxembourg
International tax, audit, accounting and legal news
Intrastat Reporting in Croatia24.01.2022
Like all EU Member States, the Republic of Croatia is obliged to collect statistical data within the framework of the Intrastat system. Companies that meet the criteria set by the Croatian government and exceed the defined thresholds for receiving and sending commercial goods in Croatia are obliged to fill out the Intrastat declaration and submit it electronically to the customs authorities.
What Intrastat Reporting Means
Intrastat is a system of official statistics on trade between the Member States of the European Union. It was introduced in 1993 following the introduction of the European Union single market. Data on trade within the European Union, together with data on trade with third countries (Extrastat), provide statistics which are a key component of compiling the balance of payments and calculating gross domestic product. Also, Intrastat data are the basis for making macroeconomic decisions and for further market analyses.
Intrastat Reporting Obligation in Croatia
There are three conditions that make business entities subject to Intrastat reporting in Croatia:
- Businesses must hold a Croatian VAT number, making them a VAT payer in Croatia.
- Businesses must be engaged in trade with other Member States of the European Union, where the term “trade” implies all goods that are physically shipped from and delivered to the Republic of Croatia.
- Trade must exceed the threshold for inclusion in the Intrastat system, which is determined separately for each calendar year by the national statistical authority in all Member States of the European Union. There are two thresholds, one for the receipt of goods in Croatia and one for the shipment of goods from Croatia. For 2021, the receipt threshold is HRK 2,500,000 and for shipment it is HRK 1,300,000.
We can register your company in the Intrastat system, prepare the data and submit the Intrastat report to the customs authorities.Mihael Gruičić, Payroll Specialist, ECOVIS FINUM, Zagreb, Croatia
Submission of Intrastat Reports in Croatia
A business entity in the Republic of Croatia may submit Intrastat forms independently or through a declarant authorised to submit the forms on its behalf, explain the Ecovis experts. Although the declarant may submit the Intrastat forms, the business entity is still responsible for providing accurate and complete data. Moreover, since Intrastat forms are submitted via the internet, it is necessary to have certificates for signing documents electronically and to register with the internet service of the Customs Administration of the Republic of Croatia.
For further information please contact:
Mihael Gruičić, Payroll Specialist, ECOVIS FINUM, Zagreb, Croatia
Family Constitutions in Succession Planning21.01.2022
Succession planning and ownership transitions, especially in family businesses, can be challenging. In many cases, the current owner and the successors have different levels of motivation and disparate timelines.
While ownership transitions benefit both the original owner and the new owner, there are many pitfalls to avoid. The devil is in the details, as they say. Aligning the expectations of both parties is paramount. Consider, for example:
- Does the current owner and the successor expect the same outcomes?
- Are both generations going to be willing and ready for transition at the same time?
The key to success is open and honest communication, as well as shared common values.
To that end, it may be worth formalising an agreement between generations. A “Family Constitution” is a set of principles that a family agrees to follow with regard to personal and business relations. This is a good place to define the goals and core values – not of the company – but of both generations. Succession planning needs to take into account both the transfer of property, as well as the opportunity to maintain or build relationship equity. The value of the business is certainly central, but it is not the only asset to consider.
Therefore, the help of experienced consultants in drafting a Family Constitution is indispensable. This neutral third party can help navigate the ins and outs of a family dynamic more objectively. Further, they can advise on whether this document should be a formal and binding legal agreement or more of a values-based declaration without creating any legal obligations.
Is your business transition-ready? Have you considered a Family Constitution for your family-owned business? How might your family and your business benefit from one?
Our team from Ecovis Poland would be happy to assist you.
Start-Up Business in Pakistan08.12.2021
In recent years, there has been strong growth in start-ups in Pakistan. According to the Security and Exchange Commission of Pakistan (SECP), the country has moved up in the World Bank’s Ease of Doing Business Index for the second consecutive year since 2019, going from 130th to 72nd in the ‘Starting a Business’ category.
Over the past few years, Pakistan has seen many start-ups and a boom in various branches of industry. This includes textiles, construction, IT and the cement industry.
How exactly have Start-Ups Boomed and Flourished during a Period of Pandemic?
Pakistan is one of the eight fastest growing economies in the world. This growth has come about as a result of the structural reforms started by the current government and the flagship project of the Belt and Road Initiative (BRI), the China-Pakistan Economic Corridor (CPEC).
Small and medium-sized enterprises in Pakistan account for 90% of economic growth, but despite this they only take up 7% of the credit provided by the financial sector. Large scale manufacturing industries have also reached a 16-year high level of growth: 14.85% in the financial year 2021. This growth has equally been encouraged by the government’s new policies which have led to expansion in sectors such as textile, construction, food, tourism, and automotive.
Would you like to invest in Pakistan? We can help you to locate your business here.Areeba Ahmed, Consultant Company Secretarial Services, ECOVIS FAMCO Associates, Karachi, Pakistan
Support for Start-Ups in Pakistan
Regulatory bodies have collaborated with each other to enable an omni channel for company incorporation services. This means that they can provide services from start to finish, from incorporation to liquidation. This gives clients a unified experience where they can obtain all the services their company might need in one place. The Board of Investment of Pakistan is encouraging both local and foreign investors and providing opportunities for them to play significant roles in enabling entrepreneurs to boost the ease of doing business. In general, Pakistan provides an optimal environment for the prosperity of small businesses and multinational companies alike, as it provides low-cost factors of doing business, explain the Ecovis advisers. 55% of the total population of 220 million is under 30 years of age. This ensures that labour is readily available in various skillsets. The workforce is also very diverse, ranging from high-skilled technical resources to low-cost labourers. The fast-growing logistics sector ensures that distribution channels are always connected, providing a smooth service from start to finish.
For further information please contact:
Areeba Ahmed, Consultant Company Secretarial Services, ECOVIS FAMCO Associates, Karachi, Pakistan