The topic of this paper is profit tax. Profit tax is one form of direct taxation. Profit tax is regulated by the Profit tax law as well as the Profit tax regulations, which are aligned with the directives of the European Union. It’s implementation often subject to legislative changes. The taxpayer in the Republic of Croatia is a company or another legal or natural person who is a resident of the Republic of Croatia. Since 1st of January 2017 the tax rates of profit tax in Croatia are 12% and 18%. A practical example of profit tax calculation is shown on the example of Marana d.o.o. (LLC) company for 2017. The company Marana d.o.o. pays tax according to the 18% rate because the income of the company exceeds 3.000.000,01 HRK. The company is a simple business and on the obligatory profit tax report it showed increase in accounting expenses of 50% for representation and 30% expenses for personal transport. The company paid the profit tax in the amount of 12.345,69 HRK for 2017. The profit tax as one form of direct taxation of entrepreneurs is one of the most important incomes of the government budget.