Parliamentary support for elimination of double taxation for Australia and New Zealand

All parliamentary groups have supported laws ratifying agreements between Croatia and both Australia and New Zealand on the avoidance of double taxation and the prevention of tax evasion and avoidance, highlighting the importance of these measures for Croatian emigrants.

State Secretary at the Ministry of Finance, Matej Bule, stressed that adopting these laws will improve conditions for the exchange of goods and services with Australia and New Zealand, as well as for their business communities.

“The agreements aim to establish a clear and transparent framework for Croatian, Australian, and New Zealand entrepreneurs. When planning economic activities, they need certainty about which country has the right to tax business income and how to avoid the risks of double taxation,” he said.

Bule added that the agreements will introduce various tax relief measures across different types of income and profits, contributing to increased overall economic activity between the countries. He also highlighted the importance of residency provisions, noting that pension and investment funds will be granted this status.

Under both agreements, profits will be taxed in the country where the company is resident. Airline and shipping companies engaged in international transport will pay tax exclusively in the Republic of Croatia on profits earned there. Bule also pointed out that direct communication channels have been established with local tax authorities, eliminating the need to rely on diplomatic or consular missions.

SDP MP Boris Lalovac asked when the agreement on the avoidance of double taxation with the United States would be ratified. Bule recalled that the agreement was signed four years ago but required further refinements.

“We expect the additional protocol to be signed next week in Dubrovnik. After ratification by both sides, the agreement should enter into force,” he said.

Dalibor Paus (IDS) asked about expectations for increased trade with Australia and New Zealand. Bule responded that strengthening economic cooperation-particularly given the large Croatian diaspora in those countries-is a key objective of the agreements.

Boris Piližota (SDP) questioned what the agreements mean for small entrepreneurs and craftsmen, not just large companies experienced in tax optimization. Bule noted that around 170,000 people of Croatian origin live in Australia, underlining the broader relevance of the agreements.

He added that the agreements are expected to come into force on 1 January next year.

Speaking on behalf of the HDZ parliamentary group, Danica Baričević emphasized that such agreements remove barriers caused by double taxation and encourage economic cooperation.

On behalf of the SDP, Boris Lalovac stressed the importance of resolving residency issues.

“These agreements are not only important for companies but also for encouraging the potential return of part of the Croatian diaspora. A key issue is ensuring that people living in Australia clearly understand what taxes apply to their pensions if they choose to retire in Croatia,” Lalovac said.

Independent MP Josip Jurčević (Most) focused on emigration, arguing that Croatia has yet to fully utilize the development potential of its diaspora. He questioned why such agreements are being introduced only now, particularly with countries hosting some of the largest Croatian communities. He also noted that negative stereotypes about emigrants persist, despite evidence of their significant financial, developmental, and economic contributions.