On 2 May 2025, the Croatian government approved the draft law for the ratification of the pending income and capital tax treaty with Saudi Arabia. The treaty, signed 4 December 2024, is the first of its kind between the two countries and will enter into force after the ratification instruments are exchanged. Taxes Covered The treaty covers Croatian profit tax, income tax, local income tax, and any other surcharge levied on one of these taxes. It covers Saudi income tax and Zakat. Permanent Establishment The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise...