Croatia Tax Agency Clarifies Taxation of Vessels Under DTA With Slovenia

The Croatian Tax Administration Feb. 10 clarified the taxation of vessels under the 2005 DTA with Slovenia. A taxpayer sought clarification on the vessel tax obligations of Slovenian residents with vessels registered in Croatia. The Tax Agency clarified that: 1) under the DTA’s article on capital, Croatia doesn’t have the right to tax vessels owned by Slovenian residents, but Slovenia has the exclusive right to tax a Slovenian resident’s vessels registered in Croatia; and 2) Slovenian residents that paid Croation vessel tax on vessels registered in Croatia without a legal basis can submit a written request to the relevant branch ...