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Corporate tax: information on the general rules, rates, taxpayer, withholding tax and submitting corporate (profit) tax return
Taxpayer:
Company and other legal and natural persons that are residents of the Republic of Croatia and perform their economic activity independently, permanently, and in order to gain profit, income, or revenue, or other business relevant benefits,
Domestic permanent establishment of a foreign entrepreneur (non-resident),
Natural persons who determine their income in the manner prescribed for self-employment activities pursuant to the regulations on income taxation or who are starting to perform a self-employment activity if they declare that they will pay corporate (profit) tax instead of income tax,
Natural persons who determine their income in the manner prescribed for self-employment activities pursuant to the regulations on income taxation if in the previous taxation period they generated a total receipt greater than EUR 1,000,000.00,
By way of derogation, state administration bodies, regional self-government authorities, local self-government authorities, Croatian National bank, state institutions, institutions of units of regional self-government, institutions of units of local self-government, state institutes, religious communities, political parties, trade unions, chambers, associations, artistic associations, voluntary firemen associations, technical culture associations, tourist boards, sport clubs, sport societies and associations, trust funds and foundations, if performing economic activity, whose non-taxation would result in gaining of unjustified privileges on the market, are deemed corporate (profit) tax taxpayers for that activity,
Each entrepreneur or his legal successor who is not an entrepreneur listed above, and who is not an income tax taxpayer pursuant to the regulations on income taxation and whose profit is not taxed elsewhere.
Withholding tax on profits
The taxpayer of withholding tax on profits is the person who pays interest, dividends, profit shares, royalties and other intellectual property rights (reproduction rights, patents, licenses, copyrighted marks, designs or models, manufacturing procedure, production formulas, sketch, plan, industrial or scientific experience, and other similar rights) to foreign persons that are not natural persons, and who pays market research services, tax and business counselling, and auditing services to foreign persons.
Withholding taxable amount on profits is the gross amount of the fee that the domestic payer (or foreign payer for performances of foreign performers) pays to the non-resident – foreign recipient.
Tax base
Corporate tax rates
10% if, during the taxation period, revenue has been generated up to EUR 1,000,000.00, or
18% if, during the taxation period, revenue has been generated greater than EUR 1,000,000.00.
Withholding tax rates on profits
15% except for dividends and shares in profit for which the withholding tax is paid at a rate of 10%
25 % on all types of remunerations and services that are subject to taxation pursuant to this article and for services of market research, tax and business counselling and auditing, when paid to persons having their headquarters or place of effective management, or supervision of business, in the countries placed on the EU list of non-cooperative jurisdictions for tax purposes, with which the Republic of Croatia has no double taxation treaties applicable.
10% for performances of foreign performers.
Corporate (profit) tax return
The taxpayer submits the Profit Tax Return (Form PD) for the taxation period no later than four months after the expiration of the period for which profit tax is to be determined.
The account for collecting corporate (profit) tax is HR1210010051863000160.
Competent authority and regulations
Ministry of Finance, Tax Administration
Boškovićeva 5
10 000 Zagreb
+385 1 480 9000
Info: pisitenam.porezna-uprava.hr
Corporate Income Tax Act (OG 177/04, 90/05, 57/06, 146/08, 80/10, 22/12, 148/13, 143/14, 50/16, 115/16, 106/18, 121/19, 32/20, 138/20, 114/22 and 114/23)
Date of update: 18 January 2024
