Double Tax Treaty Croatia-USA

The new income tax treaty (treaty on avoidance of double taxation) is the first of its kind between the United States and Croatia.

Key aspects of the new income tax treaty (treaty on avoidance of double taxation) include: 

• Elimination of withholding taxes on cross-border payments of dividends paid to pension funds and on payments of interest;
• Reductions in withholding taxes on cross-border payments of dividends as well as royalties;
• Standard provisions for the exchange of information between tax authorities.

The new income tax treaty (treaty on avoidance of double taxation) will enter into force after the United States and Croatia have notified each other that they have completed their ratification procedures. In the case of the United States this is the advice and consent to ratification by the U.S. Senate and in the case of Croatia ratification by the Croatian Parliament.