Zagrebacka Banka d.d.
Summary:
The new Double Tax Treaty between Croatia and United Kingdom of Great Britain and Northern Ireland (UK) entered into force and will be applicable as of 1 January 2016.
Wed, 30/12/2015
Double Tax Treaty (DTT) concluded between Croatia and United Kingdom of Great Britain and Northern Ireland (UK) entered into force on 19 November 2015 and will become effective as of 1 January 2016.
The applicable rates according to the DTT are as follows:
- Dividends:
- 5% if the beneficial owner holds a minimum share of 25%;
- 15% when dividend is paid out from the income (including profits) arising directly or indirectly from the real-estate, within the meaning of Article 6 of DTT, by the entity for investments which dispenses the most of the income on an annual basis and whose income from such property is tax exempt;
- 10% in all other cases.
- Notwithstanding the previous provisions, such dividends will be tax exempt in the Contracting State if the resident company pays out the dividends to the pension system as a final beneficial owner.
- Interest: 5%
Impact on investors: Eligible tax residents of Croatia and United Kingdom of Great Britain and Northern Ireland (UK) will be able to enjoy preferential DTT rates as of 1 January 2016.