February 27, 2012 UBS Custody News
Priority: Normal – Market: Croatia
Introduction of withholding tax on Croatian dividends
As of March 01, 2012, dividends from Croatian equities will be subject to 12% withholding tax for all individual investors and non-resident corporate investors.
The Croatian Government adopted a package of legislation including amendments to the Law on Profit Tax and Law on Income Tax. They contain the introduction of a 12% withholding tax on dividends on Croatian equities for all individual investors and non-resident corporate investors.
Croatian resident individual investors are entitled to be exempt from this withholding tax up to an amount of HRK
12'000 per year through their personal tax declaration.
Resident corporate investors would be exempted from this withholding tax. But as UBS' account in the Croatian market is operated by its custodian UniCredit Bank Austria AG under its own registration, all dividends are deemed to be paid to a non-resident corporate investor and therefore subject to the new 12% withholding tax.
Entry into force The provisions are applicable to amounts taxable on or after
March 01, 2012.
Impact Investors will be subject to withholding tax on Croatian dividends.
Source: Zagrebacka Banka D.D., Citigroup
Should you have any questions, please contact your UBS-Custody Relationship or Account Manager.
UBS AG
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Email: custodynews@ubs.com
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