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Draft Treaty between the USA and the Republic of Croatia on Avoidance of Double Taxation
September 7, 2020

Draft Treaty between the USA and the Republic of Croatia on Avoidance of Double Taxation

The Ministry of Finance announced that Deputy Prime Minister and Minister of Finance Zdravko Marić met in Banski dvori with US Ambassador to Croatia Robert Kohorst on Thursday. On that occasion, Ambassador Kohorst handed over to the Croatian Government a draft of the Treaty between the United States and the Republic of Croatia on the avoidance of double taxation.

Alongside the Ministry of Finance institutions who helped gather documentation that supported the signing of the Treaty included representatives of the Ministry of Economy and Sustainable Development, the Ministry of Foreign and European Affairs, the Croatian Chamber of Commerce and the American Chamber of Commerce in Croatia. AmCham Croatia gathered information on situations where the absence of the Treaty directly created obstacles for natural and legal persons in their economic activities between the two countries.

The Treaty will provide additional legal certainty to taxpayers, especially those with dual citizenship, prevent double payment of tax liabilities, and protect them from possible discriminatory practices. It will also establish mechanisms for cooperation between the Croatian and US tax services and the resolution of ambiguities and misunderstandings that may arise through the implementation of the Treaty.

The proposed Treaty is another confirmation of the strengthening of bilateral relations between Croatia and the United States. After the delivery of the draft Treaty, negotiations will follow in this calendar year, and the holders will be the Ministries of Finance.

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