Australia: Income tax treaty with Croatia signed
Treaty will enter into force once both countries complete their domestic implementation processes
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november 25, 2025
Australia’s federal government has signed the country’s first income tax treaty with Croatia, which would lower certain withholding tax rates and simplify compliance.
As explained in an ATO release (November 24, 2025), main features of the treaty include:
- Taxing rights over income from cross‑border dealings between Australia and Croatia
- General withholding tax rate of 10% on dividends, while intercorporate dividends on non‑portfolio holdings of at least 10% would be subject to a 5% rate
- Withholding tax rate of 10% on interest
- Withholding tax rate of 10% on royalties
- Allowing both countries to apply their own laws to prevent tax evasion or avoidance
- Important integrity provisions to prevent tax evasion and avoidance
The treaty will enter into force once both countries complete their domestic implementation processes.