Croatia initiates procedure to conclude double taxation convention with US

The government on Wednesday launched procedures to conclude the Convention between Croatia and the US for the avoidance of double taxation and the prevention of fiscal evasion

The government on Wednesday launched procedures to conclude the Convention between Croatia and the US for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Finance Minister Zdravko Marić told the press before the government's meeting that the conclusion of the Convention would lead to many benefits in taxation of all kinds of income and to the improvement of conditions for boosting bilateral trade.

"This is a great signal for investors. We are tackling the matter that has been present for more than two and a half decades," the Croatian minister said.

In October, the country's Tax Administration will open preliminary talks on holding negotiations on the document.

The convention will be beneficial to all industrial sectors, notably the IT sector.

Companies' income will be taxed in their countries of residence, the draft convention reads.

It will enable Croatian air and shipping companies that transport goods between the two countries to pay profit tax in Croatia only.

Croatian builders operating in the US for less than 12 months will not pay taxes in the US.

The convention regulates the taxation of income from real property, income and salaries of athletes, artists and so on.

Text: Hina

 

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