Withholding Tax in Croatia for Non-Residents
1. December 2021
Withholding tax may be levied on certain income that non-residents – who are not natural persons – receive in the Republic of Croatia. Income subject to withholding tax includes, for example, interest, dividends, or royalties.
Calculating and Paying Withholding Tax
Withholding tax is a tax on profits made by non-residents in the Republic of Croatia. The Croatian paying agent must calculate, withhold and pay the withholding tax, or reduce the payment of the agreed fee by the amount of withholding tax, explain the Ecovis advisers.
Subject of Taxation
Withholding tax is payable on interest, dividends and carried interest, royalties and fees for other intellectual property rights, fees for market research services, tax and business consultancy services, audit services and fees for performances by foreign performers (artists, entertainers and athletes) when they are paid to non-residents other than natural persons.
We can support you in all matters relating to corporation tax, withholding tax, VAT and other special taxes in Croatia.
Marija Bubnjić, Account Manager, ECOVIS FINUM, Zagreb, Croatia
Application of Double Taxation Treaties and Exemptions
If the Republic of Croatia has concluded a double taxation treaty with the foreign taxpayer’s country of residence, and the domestic paying agent has, prior to payment, obtained a certified application for the reduction of the tax base or a certificate of residence issued by the foreign tax authority to the foreign taxpayer, the reduced rate of withholding tax specified in the treaty may be applied. Depending on the provisions of the treaty, it may also be possible to completely avoid the payment of withholding tax.
For further information please contact:
Marija Bubnjić, Account Manager, ECOVIS FINUM, Zagreb, Croatia
Email: info@finum.hr
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