The amended EU list of non-cooperative tax jurisdictions (List) entered into force on 21 June 2019. Compared to the version of the List as of 22 May 2019, the new List excludes Dominica. Consequently, up to date List includes the following countries: American Samoa, Belize, Guam, Samoa, Trinidad and Tobago, US Virgin Islands, Fiji, Marshall Islands, Oman, United Arab Emirates and Vanuatu.
As a result, 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 as such 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: The scope of countries whose residents (legal entities) are subject to a higher withholding tax rate has been reduced further.
Related Newsflashes: Amended EU list of non-cooperative tax jurisdictions