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Croatia: Amendments to local Pillar Two rules adopted

Amendments to the accounting standard used for domestic minimum top-up tax (DMTT) purposes

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december 17, 2025

Parliament on December 5, 2025, adopted a bill proposing changes to the Croatian minimum taxation rules (Pillar Two), including amendments to the accounting standard used for domestic minimum top-up tax (DMTT) purposes. The amendments require the DMTT to be determined based on financial statements prepared in accordance with the ultimate parent entity’s (UPE) financial accounting standard unless impracticable.

The amendments become effective eight days after publication in the Official Gazette.

Read a December 2025 report prepared by KPMG’s EU Tax Centre

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