Taxes are financial payments of any individual or legal entity that must be paid to the state. There are different types of taxes that can be classified according to different criteria. In this thesis, special attention is dedicated to Corporate Income Tax as a separate tax form. The existence of income tax should be sought after in the economic -political standpoint because it is a relatively inexpensive source of revenue. In addition, from the point of view of political decision-makers, it is the preferred form of tax. Judging by the amount of revenue, income taxes is one of the most popular fiscal measures of the Ministry of Finance. This study analyzes the performance of five companies from the processing industry, whose data is publicly listed on the Zagreb Stock Exchange. The aim of this work was to investigate and analyze economic and tax potential that involves income tax in the Croatian manufacturing industry. A more positive economic potential in the manufacturing industry brings a significant deviation in the formation of final income tax liability, and the discrepancies are more significant for companies whose business is spread beyond Croatia, and their strategies entering the acquisition business. These are also the taxpayers who in addition to the positive financial success and the previously mentioned strategies take care of costs of having an economic purpose, and that will not disrupt the gross operating profit and the benefit of higher tax Income tax liability.