In the Official Gazette no. 17/23, from February 14, 2023, the Rulebook on Extra Profit Tax was published. The Rulebook entered into force on February 15, 2023.
The Rulebook to implement the Law on Extra Profit Tax prescribes:
- Procedure for determining taxable profit and amount of income,
- The criterion for determining income from the sale of long-term tangible and intangible assets, gains, and unrealized losses of financial assets,
- The procedure for reducing the obligation of extra profit tax,
- Procedure for determining newly established entrepreneurs, ending business and their tax base,
- The method of payment of the solidarity contribution prescribed by EU Council Regulation 2022/1854 on emergency intervention to resolve the issue of high energy prices, and
- Application form for extra profit tax, content, and data to submit with the tax return.
A particularly important provision of the Rulebook refers to the scope of taxpayers subject to extra profit tax. Namely, even though extra profit tax should have applied to all taxpayers who generated more than HRK 300,000,000.00 of income and had a 20% increase in taxable profit compared to the average taxable profit of the last four tax periods (2018, 2019, 2020, and 2021), the Rulebook provides that this income threshold does not apply for taxpayers engaged in activities in the sectors of:
- crude oil,
- natural gas,
- coal and refineries,
if they generate at least 75% of their turnover from economic activities in the extraction area, mining, oil refining, or production of coke oven products.
Such taxpayers are subject to the payment of solidarity contributions, regardless of the total amount of income, under Council Regulation (EU) 2022/1854. In that case, taxpayers will apply the provisions of the Rulebook in the same way as those who are responsible for paying extra profit tax.
Application form on extra profit tax
Application for extra profit tax/solidarity contribution – the DPD form is an integral part of the Rulebook. It is applied in the process of applying extra profit tax/solidarity contribution for the tax period starting from January 1, 2022.
The DPD form consists of two parts:
- PART – determination of the taxpayer/taxable profit
- PART – determination of the obligation of extra profit tax/solidarity contribution.
The established obligation of extra profit tax and solidarity contribution is paid to a special payment account prescribed by a special regulation, while the declaration of extra profit tax/solidarity contribution for the year 2022 (DPD form) is submitted to the competent office of the Tax Administration together with the PD form.
