In line with the most recent amendment to the EU list of non-cooperative jurisdictions for tax purposes, number of countries whose residents (legal entities) are subject to a higher withholding tax rate has been additionally amended.
EU list of non-cooperative jurisdictions for tax purposes has been changed as follows: Cayman Islands and Oman are removed from the list, Barbados and Anguilla are listed.
The new List effective as of 07 October 2020 comprises total of twelve countries, namely: American Samoa, Anguilla, Barbados, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, US Virgin Islands, Vanuatu and Seychelles.
Legal entities resident in all other countries from the List, except for Oman (having a Double Taxation Treaty with Croatia and thus granting 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 number of countries whose residents (legal entities) are subject to a higher withholding tax rate has been additionally amended.