Regulation on Amendments and Additions to the Regulation on the Automatic Exchange of Information in the Field of Taxation
GloBE Directive – Global Minimum Corporate Tax (Pillar 2)
Chapter 6 – Articles 122.zr to 122.at – introduces an entirely new section governing the rules for the automatic exchange of information specifically in relation to the top-up tax, which arises from the GloBE Directive (Global Anti-Base Erosion Rules on minimum taxation of large multinational enterprise groups).
Articles 57.bo to 57.cc of the Regulation define the meaning of terms for the purpose of the automatic exchange of information in Top-up Tax Information Return (hereinafter: the Return).
Chapter 6 prescribes the following:
1. Obligations of entities subject to the GloBE Rules in Croatia
- Subject to the obligation: any Constituent Entity of a Multinational Enterprise (MNE) Group or a Large Domestic Group that, in conformance with the GloBE Rules, is required to file such a Return in Croatia.
- Standard form: it is mandatory to use the standard form for submitting the application from the Regulation .
2. Deadlines and submission requirements
- The Return must be submitted electronically to the Ministry of Finance/Tax Authority no later than 15 months after the end of the fiscal year.
- For the first fiscal year (beginning on 31 December 2023 or later), the deadline is 18 months.
- Accordingly, the first Return for the fiscal year 1 January 2024 – 31 December 2024 must be submitted by the end of June 2026, while for the fiscal year 2025 in this example, the deadline will be March 2027.
3. Automatic exchange of the Return
- After submission in Croatia, the relevant parts of the Top-up Tax Information from the Return are automatically transmitted to the competent authorities of other Member States or jurisdictions.
- The deadline for the exchange of information is three months after the deadline for filing the Return for that reporting fiscal year or six months for the first reporting fiscal year.
4. Entities in Croatia exempt from filing the Return
- A Constituent Entity is exempt from filing a Return if it has been submitted ‘centrally’ by the Ultimate Parent Entity or a designated filing entity in a jurisdiction that maintains a valid agreement with Croatia between the qualified competent authorities for the applicable reporting fiscal year.
- Although Croatia has not yet signed the GIR MCAA (Multilateral Competent Authority Agreement on ohe Exchange of Globe Information), Article 57.cc allows the exchange of Returns under the Convention on Mutual Administrative Assistance in Tax Matters, Tax Information Exchange Agreements, tax treaties containing a provision equivalent to Article 26 of the OECD Model Tax Convention, or any other international agreement enabling the automatic exchange of information
- Deadlines for notifying the Tax Authority: For each reporting fiscal year, these entities are required to notify the identity of the entity submitting the Return on their behalf and its jurisdiction, at least thirty days prior to the filing deadline.
- Therefore, for the reporting fiscal year 2024 in the example, which corresponds to the calendar year (1 January - 31 December), the notice must be submitted to the Tax Authority no later than the end of May 2026, and for each subsequent year, no later than the end of February, starting from 2027.
5. Detailed requirements for the GloBE Information Return
- The Regulation further provides detailed guidance for completing all fields, clarifies certain filling options, the rules governing permanent and transitional safe harbours, the fields required for the application of specific rules, the mandatory codes to be used, and the sections that must be completed separately for each jurisdiction, among other provisions.
6. Possibility to request additional information
- The Tax Administration may request additional information to verify the accuracy of the reported top-up calculations and their compliance with risk factors.
Other Amendments
In addition to the changes related to the GloBE Directive and the global minimum tax, the Regulation on Amendments and Additions to the Regulation on the Automatic Exchange of Information in the Field of Taxation also introduces the following amendments, additions, and modifications:
- Alignment with EU Directives
The definition is further amended to incorporate two new EU Directives on administrative cooperation in the field of taxation - Council Directive (EU) 2023/2226 and Council Directive (EU) 2025/872 - thereby ensuring that the Regulation is updated in full compliance with the most recent EU standards for the exchange of tax information.
- Expansion of the Concept of 'Other Jurisdiction’
New types of international agreements through which tax information can be exchanged are added to the definition. This expansion allows for the exchange of data with a significantly larger number of countries than previously.
- Modifications to Reporting Obligations for Financial Institutions and Account Holders
Banks and other financial institutions are subject to clearer and more comprehensive reporting obligations regarding customer data, including additional information on accounts and transactions.
- New Terms and Definitions
Entirely new criteria and terms, previously not included in the text of the Regulation, have been introduced electronic money/e-money, fiat currency (including digital forms and central bank digital currency), crypto assets, etc. This signifies that the automated tax reporting system is now formally moving towards the integration of crypto-assets (e.g. tokens, digital values) and electronic money, as separate reporting categories.
- Providers of Crypto-Asset Services (new reporting entities)
New articles have been added specifically regulating the obligations of providers of crypto-asset services. They introduce specific duties for such providers, clearly defining deadlines, responsibilities, procedures, reporting methods, and the administrative consequences for non-compliance.
For additional information, please do not hesitate to reach out.
Krešimir Lipovšćak
Partner, Tax & Regulatory services
Ana Leko
Senior Manager, Tax Services
Toni Borić,
Senior Consultant, Tax Services