Exchange of documents on ratification of Agreement between Croatia and Germany on avoidance of double taxation for income and property taxes

On Wednesday, 20 December 2006, in Berlin, at the Ministry of Foreign Affairs of the Federal Republic of Germany, Croatian ABmassador to Germany Vesna Cvjetković Kurelec and German Commissioner for Legal and Consular Affairs and Migration Issues Andreas von Mettenheim exchanged the documents on the ratification of the Agreement between the Republic and Croatia and the Federal Republic of Germany on the avoidance of double taxation for income and property taxes.

The Agreement was signed by Croatian Minister of Foreign Affairs and European Integration Kolinda Grabar Kitarović and Minister of Foreign Affairs of the Federal Republic of Germany Frank-Walter Steinmeier in Berlin, on 6 February 2006.

The Agreement has been in the works for some 10 years and is important for the companies who will not have to pay taxes in both of the countries.

The Agreement came into effect on 20 December 2006 with the exchange of the ratification documents in accordance with the Article 30, Paragraph 2, and will begin to be implemented on 1 January 2007. The Agreement’s coming into effect means the termination of the Agreement between the Federal Republic of Germany and the Socialist Federal Republic of Yugoslavia on the avoidance of double taxation for income and property taxes, which the Republic of Croatia has inherited through succession.