Businesses play an important role in creating the economic prosperity of the state. The development of an individual state, in most cases, depends on the strength of its entrepreneurs. In order for the state to collect the revenues necessary for the normal functioning of the state as a whole, it collects taxes from taxpayers. Revenues collected through taxes form the basis of the national budget which is further used to finance the needs of the state. One way to collect revenue is to tax businesses. Corporate taxation is crucial for the survival of the state, that is, the state budget depends on the profitability of the company. When taxing companies, the states try to collect the revenues necessary for the stable functioning of the economy, while on the other hand, with various tax reliefs and exemptions, they try to facilitate the business of entrepreneurs and attract foreign investments. In the Republic of Croatia, companies are subject to the following taxes: profit tax, value added tax, county, local or city taxes and excise duties. The most significant taxes to which companies in the Republic of Croatia are subject are profit tax and value added tax. After the accession of the Republic of Croatia to the European Union, the aim is to harmonize the tax system, in other words, it is trying to harmonize the tax systems of all member states with certain rules and principles. For this reason, the paper analyzes the changes in corporate income tax and value added tax in the Republic of Croatia and compares these taxes with the taxes of EU member states.