Croatia and the United States have signed a comprehensive tax treaty to avoid double levies and create opportunities for tax breaks.
Jose Fernandez, the undersecretary of state for economic growth, energy, and environment, said in a tweet, "I joined Minister Marko Primorac to sign a U.S.-Croatia income tax treaty to strengthen economic and commercial ties. Our U.S.-Croatia partnership is thriving. The U.S. welcomes Croatia’s leadership in areas ranging from energy security to support for Ukraine.”
Fernandez told Primorac he was honored to sign the treaty, which he said increases the strength of commercial ties and trade between the two nations, according to a Treasury Department news release.
State Department spokesman Ned Price said in a release that Croatian firms will avoid double taxation, enabling them to engage in the U.S. market more fluidly, according to a news release. U.S.-Croatian economic cooperation will get enhanced with the improved private-sector innovation between both nations.
Assistant secretary for tax policy Lily Batchelder said the Treasury Department was happy with the treaty with Croatia, the Treasury release reported.
More than 10 years have passed since the last comprehensive tax treaty was signed by the United States. This milestone Treasury effort reflects current tax treaty policies, she said.
The treaty includes reductions or elimination of withholding taxes on cross-border payments of dividends paid to pension funds and on payments of interest, as well as royalties, the release reported.
Also included were anti-abuse provisions intended to prevent instances of non-taxation of income as well as treaty shopping, mandatory binding arbitration and standard provisions for the exchange of information to help the revenue authorities of both nations carry out their duties as tax administrators.
