(1) For the purposes of this Convention, unless the context otherwise requires:
- (a) The terms "a Contracting State" and "the other Contracting State" means, depending on the context, the Federal Republic of Germany or the Republic of Croatia. The terms "Federal Republic of Germany" or "Republic of Croatia" comprises the territory of that Contracting State including the areas situated outside the territorial waters, over which that Contracting State exercises its sovereign rights with respect to the seabed and subsoil and their natural resources in accordance with international law;
- (b) The term "person" includes individuals and companies;
- (c) The term "company" means any corporate body or any entity that is treated as a body corporate for tax purposes;
- (d) The terms "enterprise of a Contracting State" and "enterprise of other Contracting State" means an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State, respectively;
- (e) The term "international traffic" means any transport by sea or air operated by an enterprise whose place of effective management is situated in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
- (f) The term "resident" means:
- (i) In the Republic of Croatia, any individual possessing the nationality of the Republic of Croatia, legal persons, companies and associations constituted in accordance with the laws in force of the Republic of Croatia;
- (ii) In the Federal Republic of Germany, any individual possessing the nationality of the Republic of Germany, legal persons, companies and associations constituted in accordance with the laws in force in the Federal Republic of Germany;
- (g) The term "competent authority" means:
- (i) In the Republic of Croatia, the Minister of Finance or his authorized representative;
- (ii) In the Federal Republic of Germany, the Federal Ministry of Finance or its authorized representative.
(2) For the application of this Convention by a Contracting State, unless the context otherwise requires, any term not defined herein shall have the meaning that it has under the laws of that State with respect to taxes to which this Convention applies. The meaning given to the term under the applicable tax laws of that State shall prevail over the meaning given to it under other branches of law of that State.