HK, Croatia inks tax agreement

This will serve as a guide for investors on potential tax liabilities.

The government signed a comprehensive avoidance of double taxation agreement (CDTA) with Croatia on 24 January.

The agreement will set out the allocation of taxing rights between the two countries and will guide investors on their potential tax liabilities from cross-border economic activities.

The agreement will also enable Hong Kong companies a double taxation relief in any tax paid in Croatia whether directly or by deduction.

In addition, the agreement will withhold tax for Hong Kong residents on dividends, interest, and royalties, capped at 5%. 

Profits from international shipping transport earned by Hong Kong residents will also not be taxed in Croatia.

“Hong Kong will continue to negotiate with trading and investment partners with a view to expanding its CDTA network. This could enhance the attractiveness of Hong Kong as a business and investment hub, and consolidate the city's status as an international economic and trade centre,“ Christopher Hui, Singapore’s Secretary for Financial Services & the Treasury said.