On 22 September, the Croatian Parliament concluded its first-reading debate on amendments to the Corporate Income Tax Act. The bill proposes a one-off corporate income tax on an excessive profit margin for the 2026 tax period. It would apply to medium-sized and large undertakings under the Accounting Act that make more than 50% of the value of their supplies in Croatia during 2026.

For this tax, the profit margin would be calculated from specially adjusted profit and revenue figures in the corporate income tax return. The 2026 margin would be compared with the average margins for 2023, 2024 and 2025. If the 2026 margin exceeded that average increased by 15%, a 50% rate would apply to the calculated excess-profit component.

The calculation would exclude certain exceptional events and items outside ordinary business activity, including specified dividends, effects of disposals of non-current assets, financial income and expenses, and effects of corporate restructurings. Potential taxpayers can already review their size classification, share of domestic supplies and comparable tax data for the four relevant years, and prepare several calculation scenarios.

This remains a bill. The final scope of taxpayers, calculation formula and deadlines will depend on the text enacted by Parliament, so business decisions should follow the next stages of the legislative procedure.