Croatia: Amendments to the Croatian Corporate Income Tax Act

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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 & shared bottom lb ros

More from across our site

ITR understands that UK Chancellor Rachel Reeves will announce a consultation on the proposed financial reward scheme, which had left advisers fretting
The long-running dispute centres on Medtronic’s use of the comparable uncontrolled transaction TP method; in other news, Paul Hastings and FTI Consulting both made double tax hires
The boutique Australian firm’s TP award recognition proves that world-class advisory services aren’t limited to the ‘big four’, the firm’s founder tells ITR
Canadian and Indian dual VAT models have been a source of inspiration for the Brazilian model, but the latter has unique and innovative features, the OECD paper claimed
More sophisticated use of technology, heightened TP scrutiny and stricter filing requirements are making South African Revenue Service audits a formidable challenge
The hire of Doug Wick expands Baker McKenzie’s state and local tax practice and adds to the firm’s growing ex-IRS expertise
One year after Nuwaru joined the WTS network, leaders James Jobson and Matthew Missaghi reflect on the firm’s mission to offer mid-tier pricing but deliver top-tier results
Join ITR's Head of Research, John Harrison, for an overview of key dates, new developments, best practices, and more for next year’s research cycle
The president’s tariff regime has already caused misery for taxpayers. Losing at the Supreme Court would mean it was all for nothing
The US itself was the biggest loser of tax revenue to American multinationals’ profit shifting, the Tax Justice Network reported; in other news, firms made key tax hires
Gift this article