Croatia Corporate Income Tax

Corporate (profit) tax rates and base

Croatia levies corporate profit tax on resident companies' worldwide profit and on the Croatian-source profit of non-residents, with a reduced rate for smaller taxpayers. Withholding tax applies to certain outbound payments.

• Standard corporate profit tax rate — 18% % (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Reduced corporate profit tax rate (small taxpayers) — 10% for taxpayers with annual revenue below EUR 1,000,000 % (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Revenue threshold for reduced rate — EUR 1,000,000 annual revenue EUR (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Tax base — Accounting profit (per Croatian/IFRS accounting standards) adjusted for tax-non-deductible items and tax incentives (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Corporate residence — A company is resident if it is incorporated in Croatia or has its place of effective management/control there (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Withholding tax on dividends to non-residents — 10% (general) % (may be reduced/exempt under EU Parent-Subsidiary Directive or a tax treaty) (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Withholding tax on dividends to non-cooperative jurisdictions — 25% where paid to entities in EU-blacklisted non-cooperative jurisdictions with no tax treaty % (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Withholding tax on interest and royalties to non-residents — 15% (general); 25% to non-cooperative jurisdictions % (may be reduced/exempt under EU Interest & Royalties Directive or a tax treaty) (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Withholding tax on certain services to non-residents — 15% on market research, tax/business advisory and audit services (general) % ((approx — confirm scope)) (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Tax loss carryforward — Losses may be carried forward for up to 5 years; no carryback (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Corporate profit tax return (Form PD) deadline — Within 4 months of fiscal year-end (by 30 April for calendar-year filers) (Corporate Profit Tax Act (Zakon o porezu na dobit))
• Corporate profit tax payment deadline — Final liability due by the return deadline (30 April for calendar-year filers); monthly advance payments during the year based on prior return (Corporate Profit Tax Act (Zakon o porezu na dobit))