Source: Japan Ministry of Foreign Affairs
August 14, 2019
- On August 6, Japan received from Croatia the notification confirming that its internal procedures necessary for the entry into force of 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 (signed on October 19, 2018) were completed. Thus, all the necessary procedures for the entry into force of the Agreement have been completed.
- The Agreement, therefore, will enter into force on September 5, 2019, on the thirtieth day after the date of receipt of the latter notification and will have effect:
(1) with respect to taxes levied on the basis of a taxable year, for taxes of any taxable years beginning on or after January 1, 2020; and
(2) with respect to taxes levied not on the basis of a taxable year, for taxes levied on or after January 1, 2020.
- The provisions concerning the exchange of information and the assistance in the collection of taxes will have effect from September 5, 2019, 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.
- It is expected that this Agreement promotes further mutual investments and economic exchanges between the two countries by eliminating double taxation and preventing international tax evasion and tax avoidance.