Global Daily Tax News, Croatia Legislates For New Windfall Profits Tax, (Aug 7, 2026)
The Croatian Government has tabled draft legislation for consultation to introduce a tax on windfall profits earned in 2026.
A 50-percent tax rate will apply to profits earned by companies in 2026 to the extent that they exceed by more than 15 percent profits earned on average in the years 2023, 2024, and 2025.
The legislation prescribes rules regarding the calculation of excess profits and sets out rules regarding allowable deductions.
Further, the law confirms that the 10 percent concessionary rate of corporate income tax applies to taxable income up to EUR1m each year, while the 18 percent rate applies to the remainder.