Recommendation for a COUNCIL DECISION concerning the accession of Croatia to the Convention of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises
Date: 2013-08-13
Institutions: European Commission
Subjects: Croatia, accession to an agreement, corporation tax, double taxation, tax exemption, tax on profits of self-employment













EUR-Lex - 52013PC0586R(01) - EN











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52013PC0586R(01)

Recommendation for a COUNCIL DECISION concerning the accession of Croatia to the Convention of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises /* COM/2013/0586 final/2 - 2013/0308 (CNS) */









EXPLANATORY MEMORANDUM
Article 3(4) of the 2011 Act of Accession
of Croatia to the European Union provides that Croatia accedes to the
conventions and protocols listed in Annex I to the Act of Accession and that
those conventions and protocols shall enter into force in relation to Croatia on the date determined by the Council. According to Article 3(5) of the Act of
Accession the Council, acting unanimously on a recommendation by the Commission
and after consulting the European Parliament, shall decide to make all
adjustments required by reason of the accession of Croatia to these conventions
and protocols and to publish the adapted texts in the Official Journal of the
European Union.
The list of conventions and protocols in
Annex I to the Act of Accession includes Convention 90/436/EEC of 23 July 1990
on the elimination of double taxation in connection with the adjustment of
profits of associated enterprises (Arbitration Convention), the Convention of
21 December 1995 on the accession of Austria, Finland and Sweden to the
Arbitration Convention, the Protocol of 25 May 1999 amending the Arbitration
Convention and the Convention of 8 December 2004 on the accession of the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia
and Slovakia to the Arbitration Convention. The Arbitration Convention was
amended by the Protocol of 25 May 1999 and the Conventions of 21 December 1995
and of 8 December 2004. 
Bulgaria and Romania acceded to the Arbitration Convention by virtue of the Act of Accession of 2005. Decision
2008/492/EC of 23 June 2008 made the adjustments required by reason of the
accession of Bulgaria and Romania to the Arbitration Convention and determined
the date of its entry into force, as amended, with relation to Bulgaria and
Romania.
This Commission Recommendation for a
Council Decision is intended to make the adjustments required by reason of the
accession of Croatia to the Arbitration Convention and to determine the date of
its entry into force, as amended, with relation to Croatia, in accordance with
Articles 3(4) and 3(5) of the Act of Accession of 2011.
2013/0308 (CNS)
Recommendation for a
COUNCIL DECISION
concerning the accession of Croatia to the
Convention of 23 July 1990 on
the elimination of double taxation in connection with the adjustment of profits
of
associated enterprises
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on European
Union,
Having regard to the Treaty on the
Functioning of the European Union,
Having regard to the Act of Accession of Croatia,
and in particular Articles 3(4) and 3(5) thereof,
Having regard to the recommendation from
the European Commission[1],
Having regard to the opinion of the
European Parliament[2],
Whereas:
(1)       Convention 90/436/EEC[3] (hereafter referred to as
"the Arbitration Convention") was signed at Brussels on 23 July 1990 and
entered into force on 1 January 1995.
(2)       The Arbitration Convention
was amended by a Protocol[4]
signed on 25 May 1999, by a
Convention signed on 21 December 1995[5],
a Convention signed on 8 December 2004[6],
as well as by Decision 2008/492/EC of 23 June 2008[7].
(3)       Article 3(4) of the Act of
Accession of 2011[8]
provides that Croatia accedes to the conventions and protocols concluded
between the Member States listed in Annex I to the Act of Accession. They are
to enter into force in relation to Croatia on the date determined by the Council.
(4)       In accordance with Article
3(5) of the Act of Accession of 2011 the Council is to make all adjustments
required by reason of the accession to those conventions and protocols and to
publish the adapted texts in the Official Journal of the European Union,
HAS ADOPTED THIS DECISION: 
Article 1
The
Arbitration Convention is amended as follows:
(1) In Article 2(2), points (i) to (xxvii) are
replaced by the following:
‘(i) in Belgium:
(a) impôt des personnes
physiques/personenbelasting
(b) impôt des sociétés/vennootschapsbelasting
(c) impôt des personnes
morales/rechtspersonenbelasting
(d) impôt des non-résidents/belasting der
niet-verblijfhouders
(e) taxe
communale et la taxe d'agglomération additionnelles à l'impôt des personnes
physiques/aanvullende gemeentebelasting en agglomeratiebelasting op de
personenbelasting
(ii) in Bulgaria:
(a) данък върху доходите на физическите лица
(b) корпоративен
данък
(iii) in the Czech Republic:
(a) daň z přijmů fyzických osob
(b) daň z přijmů právnických osob
(iv) in Denmark:
(a) indkomstskat til staten
(b) den kommunale indkomstskat
(c) den amtskommunale indkomstskat
(v) in Germany:
(a) Einkommensteuer
(b) Koerperschaftsteuer
(c) Gewerbesteuer, in so far as this tax is based
on trading profits
(vi) in Estonia:
(a) tulumaks
(vii) in Ireland:
(a) Cáin Ioncaim
(b) Cáin Chorparáide
(viii) in Greece:
(a) φόρος
εισοδήματος
φυσικών
προσώπων 
(b) φόρος εισοδήματος νομικών προσώπων
(c) εισφορά
υπέρ των
επιχειρήσεων
ύδρευσης και
αποχέτευσης
(ix) in Spain:
(a) Impuesto sobre la Renta de las Personas
Fisicas
(b) Impuesto sobre Sociedades
(c) Impuesto sobre la Renta de no Residentes
(x) in France:
(a) impôt sur le revenu
(b) impôt sur les sociétés
(xi) in Croatia:
(a) porez na dohodak
(b) porez na dobit 
(xii) in Italy:
(a) imposta sul reddito delle persone fisiche
(b) imposta sul reddito delle società
(c) imposta regionale sulle attività produttive
(xiii) in Cyprus:
(a) Φόρος
Εισοδήματος
(b) Έκτακτη
Εισφορά για την
Άμυνα της yημοκρατίας
(xiv)
in Latvia:
(a) uzħēmumu ienākuma nodoklis
(b) iedzīvotāju ienākuma nodoklis
(xv)
in Lithuania:
(a) Gyventojų pajamų mokestis
(b) Pelno mokestis
(xvi) in Luxembourg:
(a) impôt sur le revenu des personnes physiques
(b) impôt sur le revenu des collectivités
(c) impôt commercial, in so far as this tax is
based on trading profits
(xvii) in Hungary:
(a) személyi jövedelemadó 
(b) társasági adó 
(c) osztalékadó
(xviii) in Malta:
(a) taxxa fuq l-income
(xix) in the Netherlands:
(a) inkomstenbelasting
(b) vennootschapsbelasting
(xx) in Austria:
(a) Einkommensteuer
(b) Körperschaftsteuer
(xxi) in Poland:
(a) podatek dochodowy od osób fizycznych
(b) podatek dochodowy od osób prawnych
(xxii) in Portugal:
(a) imposto sobre o rendimento das pessoas
singulares
(b) imposto sobre o rendimento das pessoas
colectivas
(c) derrama para os municípios sobre o imposto
sobre o rendimento das pessoas colectivas
(xxiii) in Romania:
(a) impozitul pe venit
(b) impozitul pe profit
(c) impozitul pe veniturile obținute din
România de nerezidenți
(xxiv) in Slovenia:
(a) dohodnina
(b) davek od dobička pravnih oseb
(xxv) in Slovakia:
(a) daň z príjmov právnických osôb
(b) daň z príjmov fyzických osôb
(xxvi) in Finland:
(a) valtion tuloverot/de statliga inkomstskatterna
(b) yhteisöjen tulovero/inkomstskatten för
samfund
(c) kunnallisvero/kommunalskatten
(d) kirkollisvero/kyrkoskatten
(e) korkotulon lähdevero/källskatten å
ränteinkomst
(f) rajoitetusti verovelvollisen
lähdevero/källskatten för begränsat skattskyldig
(xxvii) in Sweden:
(a) statlig inkomstskatt
(b) kupongskatt
(c) kommunal inkomstskatt
(xxviii) in the United Kingdom:
(a) Income Tax
(b) Corporation Tax.’
(2) In Article 3(1), the list is replaced by
the following:
‘– in Belgium:
De Minister van Financiën or an authorised
representative,
Le Ministre des Finances or an authorised
representative,
– in Bulgaria:
Министъра
на финансите
или негов
упълномощен
представител,
– in the Czech Republic:
Ministr financí or an authorised
representative,
– in Denmark:
Skatteministeren or an authorised
representative,
– in Germany:
Der Bundesminister der Finanzen or an authorised
representative,
– in Estonia:
Rahandusminister or an authorised
representative
– in Ireland:
The Revenue Commissioners or an authorised
representative,
– in Greece:
Ο
Υπουργός των
Οικονομικών or an authorised representative,
– in Spain:
El Ministro de Economía y Hacienda or an
authorised representative,
– in France:
Le Ministre chargé du budget or an authorised
representative,
– in Croatia: 
Ministar financija or an authorised
representative,
– in Italy:
Il Capo del Dipartimento per le Politiche Fiscali
or an authorised representative,
– in Cyprus:
Ο Υπουργός Οικονομικών or an authorised representative,
– in Latvia:
Valsts ieņēmumu dienests,
– in Lithuania:
Finansu ministras or an authorised
representative,
– in Luxembourg:
Le Ministre des Finances or an authorised
representative,
– in Hungary:
a pénzügyminiszter or an authorised
representative,
– in Malta:
il-Ministru responsabbli għall-finanzi or an
authorised representative,
– in the Netherlands:
De Minister van Financiën or an authorised
representative,
– in Austria:
Der Bundesminister für Finanzen or an authorised
representative,
– in Poland:
Minister Finansów or an authorised
representative,
– in Portugal:
O Ministro das Finanças or an authorised
representative,
– in Romania:
Preşedintele Agenţiei Naţionale
de Administrare Fiscală sau un reprezentant autorizat,
– in Slovenia:
Ministrstvo za finance or an authorised
representative,
– in Slovakia:
Minister financií or an authorised
representative,
– in Finland:
Valtiovarainministeriö or an authorized
representative,
Finansministeriet or an authorized
representative,
– in Sweden:
Finansministern or an authorized
representative,
– in the United Kingdom:
The Commissioners of Inland Revenue or an
authorised representative.’
Article 2
The texts of the Arbitration Convention and
the Protocol of 25 May 1999, together with the Conventions of 21 December 1995
and of 8 December 2004 and Decision 2008/492/EC drawn up in the Croatian
language[9]
shall be authentic under the same conditions as the other language versions of these
texts.
Article 3
The Arbitration Convention, as amended by
the Protocol of 25 May 1999, the Conventions of 21 December 1995 and of 8
December 2004, Decision 2008/492/EC, as well as this Decision, enters into
force on XXX[date] between
Croatia and each of the other Member States of the European Union.
Article 4
This Decision shall take effect on the day
following that of its publication in the Official Journal of the European
Union.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L […], […], p. […].
[2]               OJ L […], […], p. […].
[3]               Convention on the elimination of double taxation in
connection with the adjustment of profits of associated enterprises (OJ L 225,
20.8.1990, p. 10).
[4]               Protocol amending the Convention of 23 July 1990 on
the elimination of double taxation in connection with the adjustment of profits
of associated enterprises (OJ C 202, 16.7.1999, p. 1).
[5]               Convention on the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the Convention on the
elimination of double taxation in connection with the adjustment of profits of
associated enterprises (OJ C 26, 31.1.1996, p. 1).
[6]               Convention on the accession of the Czech Republic,
the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the
Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the
Republic of Poland, the Republic of Slovenia and the Slovak Republic to the
Convention on the elimination of double taxation in connection with the adjustment
of profits of associated enterprise (OJ C 160, 30.6.2005, p. 1).
[7]               Council Decision of 23 June 2008 concerning the
accession of Bulgaria and Romania to the Convention of 23 July 1990 on the
elimination of double taxation in connection with the adjustment of profits of
associated enterprises (OJ L 174, 3.7.2008, p. 1).
[8]               Act concerning the conditions of accession of the Republic of   Croatia and the adjustments to the Treaty on European Union, the Treaty on
the Functioning of the European Union and the Treaty establishing the European
Atomic Energy Community (OJ L 112, 24.4.2012, p. 21).
[9]               The Croatian texts of the Conventions and Protocol and
of Decision 2008/492/EC shall be published in a special edition of the Official
Journal at a later date.