The paper analyzes the administrative agreement according to the General Tax Act. This law marks the first legislative regulation of administrative agreement in the Republic of Croatia. It regulates all aspects of administrative agreement, including the parties involved, conditions for its conclusion, subject matter, modification, termination, and ultimately, legal protection of the parties and judicial jurisdiction. In addition to a detailed explanation of the administrative agreement's conclusion process, the paper emphasizes the importance of introducing administrative agreement into the field of tax law as a form of collaboration between the public and private sector according to the General Tax Act. Data in the paper is collected through the analysis of publicly available information from published publications, website announcements, and based on current legislative regulations. Processing the available data leads to several findings, including: according to the General Tax Act, the administrative agreement represents an administrative-legal relationship between public administration and a private individual based on the mutual consent of both parties. This satisfies one of the standards of European public administration, emphasizing active citizen involvement in two-way communication with public administration and providing opportunities for participation in legal transactions. A taxpayer, by meeting the legally prescribed conditions, can enter into an administrative agreement for an extended period, thereby resolving the issue of the immediate inability to settle an overdue tax debt. The goal of entering into an administrative agreement for the tax authority is the collection of the tax debt, while for the taxpayer, it provides the opportunity to defer the maturity of the tax debt.