Localization
Danijel Pribanić / Croatia
Want to know more about localization in Croatia? Read on! Prepared in association with Danijel Pribanić, a leading global law firm, this is an extract from The Pharma Legal Handbook: Croatia, available to purchase here for GBP 99.
1. Are there any rules or regulations requiring and/or encouraging localization in your country? What is the legal framework defining these localization rules and policies?
There are not any specific rules or regulations regarding localization in Croatia. There are only general rules about support that apply to all investors such as tax aid for small, medium and large enterprises, support for the eligible costs of job creation linked to the investment project, support for eligible training costs associated with the investment project, and support for R&D activities.
For investments in the amount of EUR 150,000.00, to EUR 1,000,000.00, the income tax rate is reduced by 50% of the prescribed income tax rate for the period up to 10 years from the beginning of the investment, provided that at least five new jobs are opened related to the investment.
For investments in the amount of EUR 1,000,000.00, to EUR 3,000,000.00, to the aid beneficiary, the corporate income tax rate shall be reduced by 75% of the prescribed corporate income tax rate for up to 10 years from the beginning of the year. investments, subject to the completion of at least 10 new investment-related jobs.
For investments in the amount of more than EUR 3,000,000.00, to the aid beneficiary, the profit tax rate shall be reduced by 100% of the prescribed income tax rate for a period of up to 10 years from the start of the investment, subject to opening at least 15 investment-related new jobs.
An investment project for which capital expenditure grants are granted is an investment in the long-term assets of the aid beneficiary’s business unit in the amount of at least EUR 5,000,000.00, provided that at least 50 new jobs associated with the investment project are filled, and within three years of the start of the investment.
2. Have there been any recent significant changes involving localization rules? If yes, when did they take place and what did they involve?
New legislation, Investment Promotion Act (Official Gazette 102/2015, 25/2018, 114/2018) had been adopted quite recent, but models of support have stayed the same.
3. Is the process of obtaining a marketing authorization impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
The process of obtaining a marketing authorization is not impacted by localization.
4. Is the pricing process for pharmaceutical products impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
The pricing process for pharmaceutical products is not impacted by localization.
5. Is the reimbursement of pharmaceutical products impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
The reimbursement of pharmaceutical products is not impacted by localization.
6. Is the access to public or public tenders of pharmaceutical products impacted by localization policies in your country? If yes, how so (what are the incentives received or the requirements)?
Access to public or public tenders of pharmaceutical products is not impacted by localization.
7. Are import tariffs, importation and/or exportation permits, trade and/or taxation of pharmaceutical products impacted by localization policies in your country ? If yes, how so?
Localization has no effect.
8. Are there any other incentives or advantages offered by the current local localization rules in your country? If yes, what are they?
There aren’t any other incentives.
9. Are there discussions about the possibility of implementing localization policies in your country? If yes, what are the proposed reforms and when should they come into place?
No, only those set out in point 1.
