Original scientific paper

Effective Corporate Income Tax Burden in Croatia

Hrvoje Šimović ; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia

Abstract

This paper provides an analysis of corporate income tax (CIT) in Croatia. Given the fact that Croatia implements a consumption-based CIT and a number of tax incentives, the purpose of this paper is to establish the level of effective tax burden on companies in Croatia. In addition to analyzing the basic indicators of the CIT burden, the paper also presents a calculation of the effective tax rate based on the application of the Devereux-Griffith methodology. Apart from the cost of capital, the effective marginal tax rate (EMTR) and the effective average tax rate (EATR), also the EATR will be calculated for cases in which tax holidays are used.

Keywords

effective tax rates; corporate income tax; tax holidays; Croatia

Hrčak ID:

78706

URI

https://hrcak.srce.hr/78706

Publication date:

1.11.2009.

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