Protocol - Protocol - Croatia

PROTOCOL At the signing of the Agreement between the Government of the Republic of Croatia and the Government of the Republic of India for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed that the following shall form an integral part of the Agreement. Ad Articles 10, 11, 12 and 13 (a) Notwithstanding the provisions of this Agreement, a company resident in a Contracting State in which persons who are not residents of that State hold, directly or indirectly, a participation of more than 50 per cent of the share capital, shall not be entitled to the relieves provided for by the Agreement in respect of dividends, interest, royalties and capital gains arising in the other Contracting State. This provision shall not apply where the said Company is engaged in substantive business operations, other than the mere holding of shares or property, in the Contracting State of which it is a resident. (b) A company which under the preceding subparagraph would not be entitled to the benefits of the Agreement in respect of the aforementioned items of income, could still be granted such benefits if the competent authorities of the Contracting States agree under Article 25 of the Agreement that the establishment of the company and the conduct of its operations are founded on sound business reasons and thus do not have as its primary purpose the obtaining of such benefits. IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Protocol. DONE in two originals at Zegreb this 12 th day of February 2014 in the Croatian, Hindi and English languages, all three texts being equally authentic. The case of divergence between the texts the English text shall prevail. FOR THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE GOVERNMENT OF THE REPUBLIC OF CROATIA (Smt. Preneet Kaur) (Mr. Slavko Linic) Minister of State for External Affairs Minister of Finance