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5.4. Tax Base for Non-Resident Entities

Non-resident companies with a branch or PE in Croatia are liable to profits tax in much the same way as Croatian resident companies, albeit with respect to Croatian income only. The branch or PE is expected to derive the profits it would have been expected to derive if it were an autonomous enterprise dealing independently with the general enterprise of which it is a division.

Non-residents without a taxable presence in Croatia are subject to tax (usually by way of final withholding) on specified Croatian-source income only.