The Croatian Parliament having approved the necessary amendments to the income tax regime, the abolition of withholding tax on dividends paid by companies in Croatia is abolished from today. This follows publication of the change in the Official Gazette of the Republic of Croatia on 25 July 2005.
“The effective date of the application of the new procedures is the eighth day after the publication – i.e. 2 August 2005,” explains Sinisa Juric, Head of Custody at HVB Splitskabanka in Zagreb. “As of today, any dividends paid in Croatia will be tax-exempt. The taxation of dividend payments is abolished completely.”