background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


Dependent Personal Services

(1) Subject to the provisions of Articles 16 to 19 of this Convention, salaries, wages and other similar remuneration derived from employment by a resident of a Contracting State shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, the remuneration so derived may be taxed in that other Contracting State.

(2) Notwithstanding the provisions of paragraph (1) of this Article, remuneration derived by a resident of a Contracting State from employment exercised in the other Contracting State  shall be taxable only in the first-mentioned State if:

  • (a) The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days during any twelve-month period; and
  • (b) The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
  • (c) The expense for the remuneration is not borne by a permanent establishment or a fixed base that the employer has in the other State.

(3) The provisions of paragraph (2) shall not apply where remuneration derived for employment is under the professional employment agreement.

(4) Notwithstanding the preceding provisions of this Article, remuneration derived from employment exercised aboard a ship or aircraft or from operating trains or motor vehicles operated in international traffic, may be taxed only in the Contracting State in which the place of effective management of the enterprise operating the ships, aircraft, trains or motor vehicle is situated.

(5) Contributions made for employees in a Contracting State to the other Contracting State according to the rules in force in that State, under social security laws, shall be treated in the first-mentioned State for determination of taxable income in the same manner, under the same conditions and to the same extent as contributions made under the social security laws that are made and acknowledged as tax according to the laws of the first-mentioned State, assuming that:

  • (a) Such person was not a resident of this State immediately before performing his activity and receiving contributions that have already been paid under social security laws of the other Contracting State; and
  • (b) The competent authorities of the first mentioned State have noted that the institutions to which social security contributions are made generally correspond to those institutions that are recognized in that State as such for tax purposes.
  • For the purposes of this paragraph the term "social security laws" means
    • (i) For the Republic of Croatia: medial insurance, pension andunemployment insurance that have been paid to social security institutionsdefined under the law;
    • (ii) For the Federal Republic of Germany: medical insurance, superannuation, nursing care insurance and unemployment insurance that have been paid to social security institutions defined under the law.