Billing and Accounting Treatment of Monument Annuity

In this paper we will present the calculation of monument annuity in the Republic of Croatia on the example of companies that operate in the city of Split and Dubrovnik. Monument annuity is prescribed by cities and municipalities in the Republic of Croatia and legal entities and individuals operating in the territory of the city or a municipality are obliged to pay. The purpose of the monument annuity is to raise funds for the preservation and protection of cultural property. The basis for the calculation of the monument annuity is usable area of office space located in the immovable cultural property or the area of cultural and historical whole. Monument annuity is paid monthly per square meter of usable area of the premises. In the last part of this paper we are going to show examples of calculation and accounting treatment of monument annuity in accordance with applicable accounting regulations in the Republic of Croatia. The aim of this paper is to indicate the accounting treatment of monument annuity as a parafiscal levy that companies are required to pay and show the difference in the amount of the levy from city to city.