Croatia
Corporate - Tax administration
Last reviewed - 30 June 2025Taxable period
The CIT shall be assessed for a period that is normally a calendar year. The Tax Administration may agree, at the request of a taxpayer, that the tax period should not correspond with the calendar year, provided the tax period does not exceed 12 months. The chosen tax period cannot be changed for three years.
Tax returns
All CIT payers are obligated to submit an annual CIT return to the Tax Administration no later than four months after the end of the tax period for which CIT is assessed.
The Ministry of Finance administers taxation matters through the Tax Administration. These organisations have responsibilities and powers defined by law.
Payment of tax
Every taxpayer is required to pay monthly CIT advances (by the end of the month for the previous month) on the basis of the previous year’s tax return.
In the first year of operation, taxpayers are not obligated to pay any CIT advances.
CIT is assessed at the end of the tax period, and the assessed amount, less any instalments made, is payable by the statutory deadline for filing the CIT return.
Tax audit process
The Inspection Sector of the Croatian Tax Administration performs a tax audit of a taxpayer.
The tax audit process is usually performed as follows:
- Notification of a tax audit is sent to the taxpayer.
- Tax audit is conducted.
- Minutes of the tax audit are issued.
- Taxpayer can object to the minutes within a prescribed filing deadline. If objection shows new facts and evidence, the tax inspector will prepare supplementary minutes.
- Resolution of the tax audit is issued within 60 days as of the day (supplementary) minutes have been provided to the taxpayer. The exception is that the resolution made pursuant to customs legislation is made no later than 30 days after the expiry of the objection period. When no irregularities have been identified in the tax audit process or the taxpayer has presented new facts and evidence in the minutes, based on which there is no longer a basis for changing the tax liability, a resolution which is suspending the procedure is issued.
Appeal against the resolution can be filed within 30 days as of the day the taxpayer received the resolution. It needs to be replied to within two months as of the day the appeal has been filed. Appeal against the issued resolution which is suspending the procedure is not allowed.
After a rejected appeal, the taxpayer can initiate court litigation procedures.
Statute of limitations
The Tax Administration’s right to assess tax liabilities and interest; the Tax Administration’s right to collect taxes, interest, and execution costs; and the taxpayer’s right to a refund of tax, interest, and execution costs is subject to a statute of limitations that becomes effective in six years, counted from the day statute of limitations commences, which is 1 January of the year following the year in which the tax return is submitted. However, tax administration may initiate a tax audit only within three years counted from the day statute of limitations commences. In case of abuse of rights and criminal acts, cross border transactions, transfer pricing, tax arrangements involving several jurisdictions, etc., even earlier years may be examined, as well.
Topic of focus for Tax Administration
Tax Administration is focusing on business relations with related parties. In this regard, the Tax Administration stipulated the obligation of preparation of a report on transactions with related parties (PD-IPO form) in case the taxpayer recorded transactions with related parties in its business ledgers during the tax period, and to deliver that report along with the CIT return.
Binding opinions
Opinions and instructions issued by Tax Administration central offices are binding for all Tax Administration regional offices, and the goal is to ensure uniformity of the tax administration representatives’ treatment of taxpayers.