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of <h1>Article 23 of DTAA: Croatia and India residents can deduct foreign taxes to avoid double taxation, impacting tax rates.</h1> Article 23 of the Double Taxation Avoidance Agreement (DTAA) between Croatia and India addresses the elimination of double taxation. It stipulates that each country will allow residents to deduct taxes paid in the other country from their domestic tax liabilities. For Croatia, residents can deduct Indian taxes from Croatian taxes, up to the amount attributable to income taxed in India. Similarly, Indian residents can deduct Croatian taxes from Indian taxes, up to the amount attributable to income taxed in Croatia. Additionally, income not taxed in a Contracting State may still influence the tax rate applied in that state.
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