November 17 (SeeNews) - Croatia will impose a windfall profit tax on all companies that will report a revenue above 300 million kuna ($41 million/40 million euro) for 2022, finance minister Marko Primorac said on Thursday.
These companies will have to pay an additional tax of 33% on the part of their 2022 profit exceeding by 20% the average profit they had reported for 2018, 2019, 2020 and 2021, Primorac said during a presentation of the draft law as seen in a video file published by Nova TV.
The draft legislation will be sent for public consultations later on Thursday. Based on simulations for 2021, the new profit tax is expected to be imposed on some 200 companies, generating a revenue of some 2 billion kuna.
"Sector-wise, our analysis showed that (the new tax will impact) the processing industry, retail, construction and the financial industry. However, it is based on results for 2021. What it will be like for 2022, I don't know," Primorac added.
The new tax is tailored to redistribute profits to be reported for 2022 by taxpayers with significant profits and is it not aimed at punishing successful companies, according to the finance minister.
(1 euro = 7.541 Croatian kuna)