DOING BUSINESS IN CROATIA

Posted By Romain Ponsot on Oct 6, 1907 in Doing Business


Date de publication : 06-10-1907

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The following information are for the sole purpose  of providing a general overview of  the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.

 

Yes we tax in Croatia

 

Flash News

The tax treaty between Croatia and United Arab Emirates is signed.

The tax treaty between Croatia and United States is under negotiation.

Local tax advisors

No specific information on the local tax advisors in Croatia.

Useful Links

Website Ministry of Finance: Click here

VAT identification number within EU:

Permanent Establishment

An entity is considered to be a Croatian tax resident for CIT purposes if such entity has its legal seat or place of effective management and control in Croatia.

Such definition is subject to the provisions of an applicable tax treaty, if any.

Corporate Income Tax

The regular CIT tax rate in Croatia is 18%.

Small companies (revenues less than around 1.3mUSD) are taxed under a 12% CIT tax rate.

Dividends and other passive income derived from shares in legal entities are exempt from CIT (participation exemption).

Dividends distributed are not deductible for CIT purposes.

Carry forward : yes 5 years

Carry back : No

Companies declare their CIT 4 months before the end of the fiscal year on the basis of a self-assessment system.

Companies should pay monthly instalments.

Whithholding Taxes (payment to foreign companies)

The local tax rates in Croatia are the following, subject to the provisions of an applicable double tax treaty, if any.

No WHT on the profits derived from a branch to its foreign head office.

There is a 12% WHT on dividends.

There is a 15% WHT on Interest.

Certain companies

There is a 15% WHT on Royalties.

There is a 15% WHT on management fees.

There is a 15% WHT on technical services.

Capital gains

Capital gains are generally included in ordinary business income and taxed under the general corporate income tax rate.

VAT

Standard tax rate is: 25%

Reduce tax rate are: 13% and 5%

Exemptions:

  • Financial and insurance services
  • Education services
  • The supply of certain buildings

Certain non-resident companies may claim for a refund in case of excess of Input VAT.

No other specific information on VAT in Croatia.

Miscellaneous

Prescription: 6 years starting at the end of the year on which the tax liabilities should have been assessed.

No foreign control

Yes, in case where nonresident shareholders held directly or indirectly more than 25% of a Croatian company.

 

 

 

Do not hesitate to share your experience in Croatia with us in the comments below. Any comments are welcome !

 

Romain Ponsot

Romain est conseiller en fiscalité au sein d’un leader mondial du shipping. Grâce à son expertise tant en matière de TVA, fiscalité internationale, problématiques intragroupe qu’en matière de fiscalité des particuliers, Romain vous guidera au travers d’articles professionnels et humoristiques. 

Romain, poète dans l’âme, aime particulièrement le couscous et passe beaucoup de temps à glacer ses souliers. Profil LinkedIn
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