Croatia: Corporate profit tax interest rate on loans between related parties

The corporate profit tax interest rate on loans between related parties is 2.68% per annum as of 1 January 2022.

Corporate profit tax interest rate on loans between related parties

The arm’s length interest rate for corporate profit tax purposes applicable to loans between related parties is 2.68% per annum as of 1 January 2022.

Accordingly, for corporate profit tax purposes as of 1 January 2022:

  • The maximum tax-deductible interest rate on loans received by a taxpayer from a foreign related party decreased from 3.00% per annum to 2.68% per annum
  • The minimum taxable interest rate on loans provided by a taxpayer to a foreign related party has also decreased from 3.00% per annum to 2.68% per annum 

The above also applies to loans between two related parties which are Croatian taxpayers if one of them is in a corporate profit tax favourable position.

Read a January 2022 report prepared by the KPMG member firm in Croatia 

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.