The Law on Extra Profit Tax, which became effective on 23 December 2022 (Official Gazette no. 151/2022), determines the taxpayer of the extra profit tax based on the regulation on corporate taxation. The taxpayer qualifies if their revenues in the tax period for which the obligation of extra profit tax is valid exceeds 300 million HRK.
The extra profit tax taxpayers pay on the established tax base, which consists of a positive difference between the taxable profit of the tax period and the average taxable profit of the previous tax periods, increased by 20% and is paid at a rate of 33%.
Received applications and amounts
Business entities in Croatia were mainly obliged to file a tax return by the end of April and accordingly pay into the state budget.
According to the data, 353 reports of an extra profit tax of 236 million EUR tax administration has received by 8 May 2023. By 5 May 2023, taxpayers paid more than 213 million EUR into the state budget.
Please note that these applications and amounts are still to be confirmed because there are businesses whose fiscal year does not match the calendar year. Therefore, there is a possibility of increasing the amount.
Which industry is leading the way in the payment obligation?
Under the obligation to pay an extra profit tax, 41 companies from the manufacturing industry need to pay 103 million EUR.
Next, 69 entities from wholesale and retail trade have to pay 35 million EUR, eight companies from the field of electricity, gas, steam and the like have to pay more than 16 million EUR, and six entities from financial activities and insurance are obliged to payed a more than 23 million EUR.
What are the funds for?
When introducing the Law on Extra Profit Tax, the Government of the Republic of Croatia emphasized that the funds raised will use to help the most vulnerable groups of citizens. Furthermore, they announced the distribution of just over 102 million EUR in April.
