Change in Croatian Income Tax Rulebook

Zagrebacka Banka d.d.
Summary: 
Amedments to the Income Tax Rulebook in Croatia introduce mandatory disclosure of individuals holding debt securities on transactional omnibus custody accounts in SKDD as of 1 January 2024.
Fri, 15/12/2023

In line with the announcement of the Central Depository & Clearing Company Inc. (hereinafter: SKDD), SKDD in the role of a paying agent for interest on debt securities (currently only interest payments on bonds) will be obliged to report the data on individuals receiving interest on debt securities to local Tax Administration.

In accordance with the amendments to the Income Tax Rulebook in Croatia, custodians as participating members of SKDD will be obliged to disclose the following data on individuals (final beneficial owners) receiving interest on debt securities held on transactional omnibus custody accounts in SKDD:

-           local tax ID number (OIB)

-           total coupon amount

-           address of residence.

Custodians will be obliged to disclose prescribed data to SKDD via SKDD’s proprietary IT system by the tenth calendar day of the month following the month of the coupon payment.

First delivery of data is scheduled for February 2024 with regards to the coupon payments paid in January 2024.

Further details are expected from SKDD. Changes to the coupon payment processing will be communicated by Global Securities Services in due course.  

Impact on investors: Starting as of 1 January 2024 all investors holding debt securities on transactional omnibus custody accounts in SKDD will be obliged to disclose the data on their clients / individuals receiving interest on debt securities.