Croatia: Amendments to the Croatian Corporate Income Tax Act
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Croatia: Amendments to the Croatian Corporate Income Tax Act

jakovljevic.jpg

David Jakovljevic

The Croatian Parliament approved the EU Parent-Subsidiary Directive (2011/96/EU) and subsequent amendments to it (2015/121/EU). It also passed amendments to the Croatian Corporate Income Tax Act (CIT Act) on May 13 2016, which was published in the Official Gazette no. 50/2016 and entered into force on June 9 2016.

The amendment essentially introduces an article by which all tax exemptions, tax reductions, tax reliefs and other benefits provided for by the CIT Act cannot be granted if the tax authority determines that such benefits are a result of arrangements or business activities which, having all the facts and circumstances into consideration, are not genuine and authentic, thereby effectively resulting in tax evasion.

The phrase "non-genuine arrangements or business activities" in the amended CIT Act refers to any business transactions, activity, schemes, agreements, obligations or events, consisting of one or more parts, which are not made for valid commercial purposes or do not reflect the economic reality. According to the law, such activities are being tracked as of June 1 2016.

David Jakovljevic (david.jakovljevic@eurofast.eu)

Eurofast Global Croatia

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

The reported warning follows EY accumulating extra debt to deal with the costs of its failed Project Everest
Law firms that pay close attention to their client relationships are more likely to win repeat work, according to a survey of nearly 29,000 in-house counsel
Paul Griggs, the firm’s inbound US senior partner, will reverse a move by the incumbent leader; in other news, RSM has announced its new CEO
The EMEA research period is open until May 31
Luis Coronado suggests companies should embrace technology to assist with TP data reporting, as the ‘big four’ firm unveils a TP survey of over 1,000 professionals
The proposed matrix will help revenue officers track intra-company transactions from multinationals
The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
The ‘big four’ firm has threatened to legally pursue those behind the letter, which has been circulating on social media
The guidelines have been established in the wake of multiple tax scandals and controversies that have rocked the accounting profession
KPMG Netherlands’ former head of assurance also received a permanent bar and $150,000 fine; in other news, asset management firm BlackRock lost a $13.5bn UK tax appeal
Gift this article