No Delay in Introducing Seafarers into the Tax System

Despite the requests from seafarers in international shipping to postpone their introduction into the tax system for one year, there will be no delays, nor will there be a delay in the social reform for seafarers that has been in effect since this year, as announced by the Ministry of the Sea, Transport and Infrastructure following a meeting with representatives of the ministry and the Croatian Seafarers’ Union.

Regarding certain difficulties in implementing the reform, it has been announced that a meeting will be held next week with representatives of the Ministry, the Tax Administration, and the union, where additional clarifications will be provided regarding the income tax declaration that is mandatory for all seafarers in international shipping. The meeting discussed the issues related to the implementation of the social reform for seafarers, which has been in effect since this year, and it was concluded that there will be no delay in its implementation, as stated in the announcement. It adds that the current law places seafarers in international shipping in a more favorable position as it provides a tax relief of 183 days and a maritime allowance of 400 kuna for each day spent on the ship.

With the social reform, all Croatian seafarers in international shipping, regardless of the flag they sail under, are equal in rights and obligations concerning pension and health insurance and the tax system. This guarantees social security for all seafarers and their families after several decades, under exceptionally favorable conditions, the Ministry emphasizes. Seafarers in international shipping are required to submit annual income tax declarations by February 28, and they must attach a certificate of the number of days spent in international shipping, including days outside of shipping, which will be sent to them by the port authorities.

Seafarers in international shipping are required to submit this certificate regardless of whether the total number of days exceeds 183, and the Ministry notes that all seafarers who meet the condition of having spent 183 or more days in international shipping according to the certificate will not be taxed on income for earnings based on that. Today, a circular email was sent by several Croatian captains and crew members on ships in international shipping requesting a delay in the introduction into the tax system. In that letter addressed to several recipients, they request that 2008 be a year of adjustment, meaning that the obligation to declare income tax be postponed for one year, to 2010, and that the maritime allowance be set at the level of the personal deduction for each day spent on the ship in international shipping (1,800 kuna per day), etc. (Hina)