The amended EU list of non-cooperative tax jurisdictions (List) entered into force on 22 May 2019. Compared to the version of the List as of 26 March 2019, the new List excludes Aruba, Barbados and Bermuda. Legal entities resident in all other countries from the List, except for Oman and United Arab Emirates which have Double Taxation Treaty with Croatia and thus are subject to a statutory withholding tax rate of 12%, remain to be subject to a higher withholding tax at the rate of 20% on all remunerations payable under the Article 31 of The Profit Tax Act (including dividend and interest). Interest payments arising from bonds remain to be tax exempt.
Impact on investors: EU list of non-cooperative tax jurisdictions has been shortened.