A company residing in the Republic of Croatia (resident) who carries out an economic activity independently and permanently and for the purpose of making a profit or other economic valuables as well as the other domestic business units of a foreign entrepreneur which have actual management in Croatia (non residents) are all subjects to the corporate income tax at following rates:
– 12% if revenues of up to HRK 3 mil (appx. EUR 405.000) after the deduction of expenses or
– 18% if income realized in the tax period is equal/greater than HRK 3 mil after the deduction of expenses
Capital gains of companies are added to the regular income (profit) and are taxable at 12% or 18% rate.
Namely, capital gains on the sale of real estate assets are taxable. For a JSC capital gains are fully taxable at the 18% corporate income tax rate.
Capital gains on the sale of stocks in JSC by individuals are taxable at the rate of 12% (if the shares are held for less than three years).
Value added tax (VAT) is 25%.