Original scientific paper
https://doi.org/10.30925/zpfsr.47.1.2
Challenges and Selected Issues in the Tax Treatment of Business Transfers in Family Enterprises
Edita Čulinović-Herc
orcid.org/0000-0002-6177-8057
; University of Rijeka, Faculty of Law
Nataša Žunić Kovačević
orcid.org/0000-0001-6923-5658
; University of Zagreb, Faculty of Law
Viktorija Pisačić
orcid.org/0009-0003-1033-6827
; University of Rijeka, Faculty of Law
*
* Corresponding author.
Abstract
The tax aspects of transferring a business to the next generation within family enterprises significantly influence the founder’s decision regarding both the choice of successor and the method of transfer. In Croatia, as in many other jurisdictions, family members are granted certain tax advantages in connection with the donation and/or inheritance of a founder’s business assets. This paper analyses the tax treatment applicable to family members upon the acquisition of shares in a limited liability company (LLC) through donation and/or inheritance, in accordance with Croatian tax legislation, judicial and commercial practice, and the practice of the Tax Administration. The identified challenges and selected issues are considered in the context of challenges observed in comparative law, and recommendations are proposed for improving the regulatory framework in the Republic of Croatia.
Keywords
family enterprises; Income Tax Act; shares in LLC; gift of a share in LLC; inheritance of shares in LLC.
Hrčak ID:
346123
URI
Publication date:
15.4.2026.
Visits: 684 *