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
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