The transfer pricing rules in Croatia are stipulated by the Corporate Income Tax Act (the CIT Act) and the Corporate Income Tax Bylaw (the CIT Bylaw). In basic terms, these rules focus on the general requirement that transactions between related parties should be performed at arm’s length. The CIT Act defines that parties are related if one of them participates, directly or indirectly, in the management, control or capital of the other party, or if the same persons participate, directly or indirectly, in the management, control or capital of both parties.