Croatia and UK Sign Double Taxation Agreement

Croatia’s Minister of Foreign Affairs Vesna Pusić and UK Foreign Secretary Phillip Hammond have signed a first time comprehensive Double Taxation Agreement between the UK and Croatia in Zagreb…

Pusić and Hammond in Zagreb signing the agreement

The new Agreement replaces the 1981 UK/Yugoslavia Double Taxation Convention which both countries are currently honouring and reduces withholding tax rates on dividends from 15 percent to 10 percent for companies controlling less than 25 percent of the capital of the company paying the dividend and for portfolio investors. For companies controlling more than 25 percent of capital, the withholding rate remains at 5 percent. Withholding on interest is reduced from 10 percent to 5 percent, with zero withholding for banks. Withholding on royalties is set at 5 percent.

The Agreement will enter into force once both countries have completed their legislative procedures. (Source: HM Revenue & Customs)