Income and expenses reporting from the exchange of services with foreign countries

Eurozone joining brought changes in the financial, administrative and legal business framework. The subject of today’s article is the change related to the reporting income and expenses from the services exchange with foreign countries.

Foreign exchange system

The Republic of Croatia entered the Eurozone on January 1, 2023. That led to the liberalization of the foreign exchange system. Regardless, residents must inform the Croatian National Bank about certain foreign relations.

Informing

The Decision on the data collection to compile the balance of payments, the state of foreign debt and the state of international investments entered into force on February 4, 2023. The change in the foreign exchange system led to the Decision to prescribe a set of reports on international business relations.

The old Decision was valid until January 31, 2023, and the annual report on income and expenses from the exchange of services with foreign countries (Form US-GP) residences submits in kuna. Now, residents report in euro currency.

Also, there was a change in the list of relationships that residents must inform the Croatian National Bank about, and we have included it below.

Residents must report to the Croatian National Bank on:

1. Direct and other proprietary investments
2. The volume of economic activity of foreign legal entities
3. Dealings with securities
4. Credit operations
5. Deposit operations
6. Transactions with foreign countries based on construction services
7. Income and expenses from the exchange of services with foreign countries and particular transactions with foreign countries
8. Transactions related to international transport
9. International transactions related to insurance
10. Financial derivatives and
11. Breeding operations with foreign countries.