Croatia has a differentiated corporate tax rate: 18 % standard and 10 % reduced for small payers (annual revenue < EUR 3 million or < HRK 7.5 million equivalent). Rates apply to taxable profit, calculated from accounting profit with tax adjustments.
Standard rate 18 % applies to all corporate tax payers. Reduced rate 10 % can apply if: annual revenue does not exceed EUR 3 million (controlled by fiscal year, not calendar), company is not in a group with revenue > EUR 3 million (anti-fragmentation), not founded as result of splitting a larger company in the previous 5 years (anti-avoidance). Check criteria each year.
Taxable profit = accounting profit ± tax adjustments. Most common adjustments: tax depreciation (annual rates 5–30 % depending on asset type), non-deductible costs (entertainment > EUR 50/person, fines, interest on overdue payments), exemptions (dividends from EU/EEA + parent companies), loss carry-forward (5 years, limited to 50 % of current year taxable profit).
Corporate tax is paid in quarterly advance payments: 28 February (Q4 prior year + Q1), 31 May (Q2), 31 August (Q3), 30 November (Q4). Advance = 25 % of prior year tax. Final filing (Corporate Tax Return, form PD) submitted by 30 April of the following year. If advance exceeds final tax → refund or carry-forward. If less → top-up + 7.5 % p.a. interest.
Foreign legal entities with a branch in Croatia pay 18 % corporate tax only on the Croatian permanent establishment (PE). Double taxation is avoided via Croatia's tax treaties (>50 countries). Tax credit method: what you paid abroad can be deducted from Croatian tax, but no more than what you would pay in Croatia.
Talk to us about how the 4b2b ecosystem fits into your existing Fiscalization 2.0 flow. We have implementations from 50-employee firms to ZSE-listed companies.
