Member Seminar: Convention Between the U.S.A. and Croatia for the Avoidance of Double Taxation

Member seminar on the topic of Convention Between the U.S.A. and Croatia for the Avoidance of Double Taxation was held on March 16, 2023.

This topic was presented by Dina Salapić, Attorney in Divjak, Topić, Bahtijarević & Krka Law Firm and Tomislav Krmek, Attorney in the Baker McKenzie law firm.

The topics presented at the member seminar include:

• Principles of taxation in the U.S. with overview of tax rates (dividends, interests, rents, royalties, premiums, annuities, fees for services provided, other income)
• Principles of taxation in Croatia with overview of tax rates (dividends, interests, royalties)
• The rates stipulated by the Treaty and the conditions for their application
• U.S. reservations to the Treaty
• Limitation on Benefits and Derived Benefits Test
• Forms for claiming Treaty benefits in the U.S. (IRS Form W-8BEN, Form W-8BEN-E, Form W-8 IMY, Form W-8ECI)
• Forms for claiming Treaty benefits in Croatia
• Application of foreign tax credits towards domestic tax liability in the U.S. / Croatia
• Practical examples
• Next steps (ratification, entry into force)