This paper outlines taxes, with special reference to income tax. Taxes are the most important and most abundant type of government revenues. They are a form of forced administration payments imposed by the state, which are not specifficaly focused and have no direct counteraction. There are several types of taxes, and are usually divided into direct and indirect. The current tax system determines the following forms of taxation: income tax, wage tax, value added tax and other indirect taxes. The most significant tax form filling Croatian government budget is a value-added tax and various excises, followed by income tax, while income tax has no large impact. Income tax was introduced in the first stage of the tax reform at the beginning of 1994, its implementation is followed by frequent legislative changes. Income tax is the tax that companies pay on the profit ie. the difference between revenues and expenditures, increased and decreased according to the regulations from applicable law. The new Law on income tax introduced a tax rate of 20%, a number of reliefs, exemptions and incentives, aimed at influencing potential investors into investing in our economy. Elements indicating the character of the tax are: tax base, taxpayer, tax rates and tax reliefs. The calculation and payment of corporate income tax, as well as the appropriate documentation that is submitted to the tax administration is shown on the concrete data of the Croatian Forests Ltd. (Hrvatske šume d.o.o., Zagreb) for the financial years of 2012 and 2013. For aforementioned fiscal years, profit is presented, also tax base has been calculated that is higher than the pre-tax profit.