Japan, Croatia Sign New Tax Treaty

Japan, Croatia Sign New Tax Treaty

Japan and Croatia signed a new tax treaty on October 19.

The new tax treaty provides for a reduced withholding tax on dividends, interest, and royalties. In some case, these are exempt.

The tax treaty includes an anti-abuse clause under which treaty benefits will not be granted if it is reasonable to conclude that obtaining such a benefit was one of the principal purposes of any transaction.

Clauses on exchange of information concerning tax matters and mutual assistance in the collection of tax claims between the two countries are also included.

The tax treaty would enter into force after the completion of the approval process in both countries.

See Japan-Croatia Tax Treaty.