Taxes are collected in all countries of the world primarily for the purpose of collecting revenues for government expenditures, although they also serve other purposes. In modern economies, taxes are the most important source of government revenue. In addition to financing government expenditures, taxes can be used as an instrument of economic policy and thus can affect income distribution or price stability, etc. Analysis of fiscal policy and its impact on economic growth is an important topic in every country in the world, including the Republic of Croatia. Conducted research we showed that reducing the tax rate would strengthen the activities of the economy in Croatia. The Republic of Croatia, like other transition countries, tax policy measures would strengthen competitiveness on the capital market and attracting foreign investments. It is for these reasons that many changes have been introduced to the corporate tax system, especially in tax incentives, exemptions and reliefs. Therefore, we determined the extent to which these elements affect economic trends in the Republic of Croatia, and to analyze the results achieved in relation to the desired fiscal, socio-economic, political and other goals.