ZAGREB, April 17, 2018 – The American Chamber of Commerce in Croatia (AmCham) in Washington on Monday presented its “Arguments in Favor of a Double Taxation Treaty Between Croatia and the United States of America”, requesting support for launching negotiations to this end, AmCham said in a statement.
The document was presented to Marjorie Chorlins, Vice President for European Affairs at the US Chamber of Commerce.
AmCham requested support in advocating the launch of negotiations to conclude a double taxation treaty between the two countries, the organisation said.
Double taxation treaties are international contracts entered into by states with the principal purpose to reduce or eliminate double taxation of income earned by residents of each country from sources within the other country, AmCham said. These treaties are intended to prevent avoidance or evasion of taxes but their actual influence exceeds this purpose: they also help promote and foster closer economic cooperation by helping to eliminate possible barriers to trade and investment caused by overlapping taxing jurisdictions, it added.
Despite a number of attempts to date to initiate the negotiating process for signing a tax treaty with the US, no such treaty is currently in place. The absence of this treaty, among other things, reduces transparency in doing business, puts a considerable tax and administrative burden on Croatian companies wishing to do business in the US and vice versa, and reduces the scope of transfer of knowledge between the two countries. The absence of this treaty also puts Croatia at a disadvantage in relation to other EU member states which have treaties in place, AmCham said in the statement.
AmCham called for opening the negotiation procedure for signing a tax treaty between Croatia and the US.