October 19, 2018
[Revised on January 29, 2019]
Ministry of Finance
Tax Agreement with Croatia was Signed
[Provisional translation]
1. Today, the Government of Japan and the Government of the Republic of Croatia signed the Agreement between Japan and the Republic of Croatia for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance in Zagreb. This Agreement is the first tax agreement to be concluded between Japan and the Republic of Croatia in light of an increasingly close economic relationship between the two countries.2. For the purpose of eliminating double taxation arising between the two countries, this Agreement clarifies the scope of taxable income in the two countries. In addition, this Agreement will enable the tax authorities of the two countries to consult each other on taxation not in accordance with the provisions of this Agreement, to exchange information concerning tax matters and to mutually lend assistance in the collection of tax claims. It is expected that, while eliminating double taxation and preventing international tax evasion and tax avoidance, this Agreement promotes further mutual investments and economic exchanges between the two countries.
【Reference 1】 Next Steps
After the completion of the necessary domestic procedures in each of the two countries (in the case of Japan, approval by the Diet is necessary), each of the two countries shall send through diplomatic channels to the other country the notification confirming the completion of its internal procedures. This Agreement will enter into force on the thirtieth day after the date of receipt of the latter notification and will have effect:
(a) with respect to taxes levied on the basis of a taxable year, for taxes for any taxable years beginning on or after
January 1 in the calendar year next following that in which this Agreement enters into force; and
(b) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1 in the
calendar year next following that in which this Agreement enters into force.
(c) The provisions concerning the exchange of information and the assistance in the collection of taxes have effect
from the date of entry into force of this Agreement without regard to the date on which the taxes are levied
or the taxable year to which the taxes relate.
【Reference 2】 Texts and Key Points of the Agreement
・“Agreement between Japan and the Republic of Croatia for the Elimination of Double Taxation with respect to Taxes
on Income and the Prevention of Tax Evasion and Avoidance”（Japanese(PDF:222KB)
・English(PDF:118KB)）・Key Points of Tax Agreement with Croatia