Organization : Ministry of Finance, Tax Administration
Facility : Profit & Withholding Tax
Country : Croatia
Website : https://porezna-uprava.gov.hr/en/profit-tax/7365
Croatia Profit & Withholding Tax
Profit Tax:
** Company and other legal and natural persons that are residents of the Republic of Croatia and perform their economic activity independently, permanently, and in order to gain profit, income, or revenue, or other business relevant benefits,
** Domestic permanent establishment of a foreign entrepreneur (non-resident), Natural persons who determine their income in the manner prescribed for self-employment activities pursuant to the regulations on income taxation or who are starting to perform a self-employment activity or if they declare that they will pay profit tax instead of income tax
** Natural persons referred to in item 3 if they generated a total receipt greater than EUR 1.000.000,00 in the previous taxation period
** Every entrepreneur or his legal successor who is not an entrepreneur listed in items 1 to 5, and who is not an income tax taxpayer pursuant to the regulations on income taxation and whose profit is not taxed elsewhere.
Withholding Tax:
Domestic payer who pays interest, dividends, profit shares, royalties and other intellectual property rights (reproduction rights, patents, licenses, copyrighted marks, designs or models, manufacturing procedure, production formulas, sketch, plan, industrial or scientific experience, and other similar rights) to foreign persons that are not natural persons, and who pays market research services, tax and business counselling, and auditing services to foreign persons.
Subject of Profit & Withholding Taxation
Profit Tax:
Profit that is assessed according to accounting regulations as the difference between revenue and expenditures before the calculation of profit tax, increased and reduced according to the provisions of Profit Tax Act.
Withholding Tax:
Gross amount of the fee that the domestic payer (or foreign payer for performances of foreign performers) pays to the non-resident – foreign recipient.
Amount of Profit & Withholding Tax
Profit Tax:
** 10% if, during the taxation period, revenue has been generated up to EUR 1.000.000,00, or
** 18% if, during the taxation period, revenue has been generated greater than EUR 1.000.000,00.
Withholding Tax:
** 15% except for dividends and shares in profit for which the withholding tax is paid at a rate of 10%,
** 25% on all types of remunerations and services to non-residents and on services of market research, tax and business counselling and auditing, when paid to persons having their headquarters or place of effective management, or supervision of business, in the countries placed on the EU list of non-cooperative jurisdictions for tax purposes, with which the Republic of Croatia has no double taxation treaties applicable,
** 10% for performances of foreign performers.