12/10/20

INTERNATIONAL TAX: Croatia, USA Start Talks on Avoidance of Double Taxation.

As published on total-croatia-news.com, Saturday 10 October, 2020.

ZAGREB, October 10, 2020 - Croatia-US talks on an agreement on the avoidance of double taxation have started and Croatian exporters, notably those from the IT sector, are looking forward to them as the new measures will help them save up to 30% of their earnings, the Croatian Chamber of Commerce said on Saturday.

Dividends for tax non-residents are taxed at a rate of 30%, which causes significant problems for Croatian companies and makes them uncompetitive.

The lack of an agreement on double taxation avoidance makes business operations less transparent, and the very fact that Croatia is the only EU and NATO member that does not have such an agreement with the USA puts Croatian businesses at a disadvantage compared to businesses from other EU countries, the HGK says.

The head of the HGK group for the gaming industry and Pandora Studio company director, Andrej Levenski, said that all the more important platforms, from Steam, Google Play and Apple Store to Origin, are US companies, which means that they charge a 30% fee for commercial services.

He noted that the cancellation of double taxation would help Croatian gaming businesses save US $15-30 dollars per $100 of sales.