News from Bosnia & Herzegovina

  • Bosnia and Herzegovina ratifies updated treaty with Romania
    On 27 June 2017, the Prime Minister of Bosnia and Herzegovina adopted a decision ratifying the income tax treaty between Bosnia & Herzegovina and Romania, which was signed on 6 December 2016. When it becomes effective (pending Romania’s ratification), the treaty will replace the former Yugoslavia - Romania Income and Capital Tax Treaty dated 1986. The Treаty provides for the...
  • Amendments to Air Protection Law in Republic of Srpska of Bosnia and Herzegovina
    The National Assembly of the Republic of Srpska (RS) adopted the amendments to the Air Protection Law (the Law) on 27 April 2017. With the amendments, the new Law is now harmonized with the European Union acquis communautaire. “In order to prevent, reduce and to a possible extent, stop the pollution caused by the industrial activities and follow the principles...
  • To Petya or NotPetya; this is how to protect yourself!
    A new ransomware has risen and is spreading across Europe like wild fire. This new malware is creating chaos across businesses, from supermarkets to shipping ports, ad agencies and law firms. The new ransomware - code named “NotPateya” - shares some very similar characteristics to a very recent malware “Wannacry”. About NotPateya NotPateya gets its name from an older malware...
  • Law on Financial Operations in the Federation of Bosnia and Herzegovina (FBiH)
    The Law on financial business activities in FBiH was published in the Official Gazette of FBiH No. 48/16 in June 2016, while it became effective as of December 30, 2016. The Law is the result of harmonization of BiH’s legislation with the EU directives on combating late payments. The main purpose of the Law, however, is to attempt to protect...
  • Amendments to Profit Tax Law in Republic of Srpska of Bosnia and Herzegovina
    The National Assembly of the Republic of Srpska (RS) adopted amendments to the Profit Tax Law on 28 December 2016. The main changes have become effective as of 1 January 2017 and will be briefly presented in this article. With the amendments, the Law clarifies the definition of "taxable person" and harmonizes the concept of residence with the Profit Tax...
  • Bosnia and Herzegovina: Rulebook on indirect tax control amended
    Pursuant to Article 14 of the Law on Indirect Taxation System in Bosnia and Herzegovina (BiH) ("Official Gazette", No. 44/03, 52/04, 34/07, 4/08, 49/09 and 32/13), the Governing Board of the Indirect Taxation Authority (ITA) adopted amendments to the Rulebook on the Limited Control of Indirect Taxes, at the 12th session held on September 2, 2016. This Regulation entered into...
  • Transfer Pricing in Bosnia and Herzegovina
    Bosnia and Herzegovina (BiH) consists of two territorial and administrative entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republic of Srpska (RS), as well as the District of Brcko (BD). The effective dates for introduction of the initial transfer pricing rules were for FBiH the 1st of January, 2008 and for RS the 1st of January, 2007, although...
  • Non-residents subject to capital gains tax in Federation of Bosnia and Herzegovina
    The amendments to the Corporate Income Tax Law of the Federation of Bosnia and Herzegovina (FBiH) entered into force on March 6, 2016. The new updates are effective as of January 1, 2016 and provide that non-resident companies are taxed on capital gains derived from the sale of shares,  immovable property or interests in equity, unless otherwise provided by a...
  • Counteracting money laundering and terrorist financing – rules amended
    The Council of Ministers of Bosnia & Herzegovina adopted the Rulebook on application of the Law on Preventing Money Laundering and Terrorist Financing (the Law), which entered into force on 29 May 2015. A year later, on 29 June 2016, certain amendments to this Law entered into force. The amendments relate to the Indirect Taxation Authority (ITA), which controls the...
  • Federation of Bosnia & Herzegovina amends Profit Tax Law
    The Official Gazette of the Federation of Bosnia & Herzegovina (FBIH), no. 15/16 as published on February 26th, 2016 included the new Profit tax Law applicable in FBIH. The Law entered into force eight days after its publication. Some of the most significant amendments in the new law include: • A taxpayer for income generated in FBiH is now also...
  • Bosnia & Herzegovina: Instruction on indirect tax exemption under Instrument for Pre-Accession Assistance Programme II
    Bosnia & Herzegovina | March 2016 | On November 11th, 2015, a new Instruction issued by the Director of the Indirect Tax Authority of Bosnia and Herzegovina entered into force. The Instruction was published in the Official Gazette of Bosnia and Herzegovina on November 30th, 2015. Under the title "Instruction on claiming customs duties and taxation payment exemption in accordance...
  • Changes to Property Tax Law in Republic of Srpska
    On 22 October 2015, the National Assembly of the Republic of Srpska adopted amendments to the Law on Property Tax. The Law entered into force on 1 January 2016. The most significant change introduced with the amendments is the decrease of the maximum property tax rate. The Law authorizes municipal assemblies to determine the annual tax rate on a municipality...
  • Benefits of moving your business to free zones of Bosnia
    Bosnia & Herzegovina/November 2015 In today’s difficult market businesses are constantly searching for ways to reduce their expenses and utilize existing resources in order to improve or at least maintain capacities. More and more companies see a viable strategy to do so by investing and moving to a more favorable location and more specifically to specially-designated industrial zones. Companies that...
  • Tax treaty between Bosnia & Herzegovina and Poland
    Bosnia & Herzegovina/October 2015 On 14 October 2015, the House of Peoples of Bosnia and Herzegovina (Upper House of the Parliament) approved the Tax Treaty signed between Bosnia & Herzegovina and Poland. The treaty was signed in June of 2014 and ratified by Poland on 8 April 2015. The taxes to which this Treaty applies include the tax on income...
  • Bosnia and Herzegovina’s Corporate Income Tax Bill under review
    Bosnia and Herzegovina/September 2015 In accordance with the conclusions by the House of Peoples of the Federation of B&H arising from the session held on 15.07.2015, the Federal Ministry of Finance has opened a public debate on the Draft of the Law on Corporate Income Tax. Public consultations of the Law are opened until October 31 2015. All interested parties...
  • Republic of Srpska (B&H) announces possibility for control of contribution payments
    Bosnia and Herzegovina/August 2015 In order to control payment of contributions and salary taxes, the Government of Republic of Srpska has announced the possibility of introducing a control system. The proposed system will function through the commercial banks and will effectively link the net salary payments with the social contribution payments. With the system, the payout of the net salary...
  • New threshold for large VAT taxpayers in Bosnia & Herzegovina
    Bosnia & Herzegovina/August 2015 On June 16th 2015, in accordance to Articles 7 and 8 of the Law on Indirect Taxation System in BIH (Official Gazette No. 44/03, 52/04, 34/07, 4/08, 49/09 and 32/13) in conjunction with Article 25 of the Law on the Indirect Taxation Authority (Official Gazette 89/05) the Director of Indirect Taxation, with prior approval of the...
  • Special methods of tax debt payment for companies in Republic of Srpska declared unconstitutional
    Bosnia & Herzegovina/March 2015 The Constitutional Court of Republic of Srpska (RS) held its 191st regular session on December 22nd, 2014. On this session, in accordance with the Constitution and the Law competencies, decisions were made on the compliance of laws and other legal acts with the Constitution and Laws of RS. Constitutional Court has ruled that certain regulations of...
  • Changes to Law on Cash Registers in Republic of Srpska entity, Bosnia and Herzegovina
    Bosnia & Herzegovina/October 2014 The National Assembly of the Republic of Srpska (RS) on 15 July 2014 adopted the amendments to the Law on Cash Registers, which entered into force on 1 August 2014. The changes have been announced in the Official Gazette of RS, edition number 65, dated 24 July 2014. The Law provides for an exemption from the...
  • Law on Excises amended in Bosnia and Herzegovina
    Bosnia/September 2014 In the beginning of 2014, the prices of cigarettes in Bosnia and Herzegovina (B&H) increased due to the Decision on the rate of specific excise duty and the overall minimum excise duty on cigarettes. Six months later, in June 2014, the Bosnian parliament adopted another set of amendments to the Law on Excise, which entered into force in...
  • Amended law on Tax Procedures in Republic of Srpska
    Bosnia&Herzegovina/July 2014 Amendments to the Law on Tax Procedures in the Republic of Srpska (RS) have been adopted by the National Assembly on 8 April 2014. The amendments were published in the Official Gazette on 24 April 2014 and entered into force on 2 May 2014. The major amendments include: • Comprehensive exchange of information in accordance with a special...
  • Bosnia and Herzegovina ratifies double tax treaty with FYR Macedonia
    Bosnia&Herzegovina/June 2014 Pursuant to Article IV.4.d) of the Constitution of Bosnia and Herzegovina (B&H), the Parliamentary Assembly of B&H on the 62nd session of the House of Representatives held on 23 January 2014, and the 36th session of the House of Peoples held on 12 March 2014, adopted the decision on approval for ratification of the Agreement between B&H and...
  • FYR Macedonia ratifies double tax treaty with Bosnia & Herzegovina
    Bosnia & Herzegovina/May 2014 On February 3, 2014, the FYR Macedonian parliament has ratified the tax treaty with Bosnia & Herzegovina signed on September 24, 2013 in Sarajevo. The ratification law was published in the Official Gazette No. 29 of 6 February 2014. Pending ratification of the treaty by Bosnia & Herzegovina and its subsequent entry into force, the agreement...
  • Law on Property Tax Rate – Changes for 2014 in Brcko District
    Bosnia & Herzegovina/March 2014 Non-residents, either physical persons or legal entities, can claim all property rights including possession of real estate, in the same manner as the domestic residents on the entire territory of Bosnia and Herzegovina (B&H).  Therefore, foreign investors are given full legal protection and undisturbed transfer abroad of their profits originating from investment in B&H. The Assembly...
  • Tax Treaty between Bosnia & Herzegovina and Azerbaijan
    Bosnia & Herzegovina/March 2014 A Tax Treaty between Bosnia & Herzegovina (B&H) and Azerbaijan for the avoidance of double taxation and the prevention of fiscal evasion related to income and capital taxes was concluded on 18 October 2012. Following ratifications from both parties, the DTT entered into force on 26 December 2013 and became aplicable as of 1 January 2014....
  • Law on special modalities for tax debt servicing has entered into force
    Bosnia/December 2013 The Law on special modalities for tax debt servicing (the Law) in Bosnian entity Republic of Srpska entered into force on 14 August 2013. The Law governs special modalities and procedure for tax debt servicing. The main objective is to ease the financial position of companies affected by economic crisis, to maintain current solvency, and stimulate employment. The...
  • Business Registration Reforms in Bosnia and Herzegovina-Republic of Srpska Entity
    Bosnia/November 2013 The government of the Bosnian entity Republic of Srpska (RS) has adopted a set of laws, which constitute a legal framework for the implementation of the reform of business registration. This way the RS government tends to create the legal requirements for establishment of new companies with easier and low cost procedure. These changes are significant incentives for...
  • Double Tax Treaty Agreements Update
    Bosnia/November 2013 During the last few years, Bosnia and Herzegovina (BiH) has been quite active when it comes to bilateral relations, especially regarding the signing of new double tax treaty agreements. In 2013, BiH negotiated new double tax treaties with; -    Switzerland, which the Swiss Federal authorities announced in February that the negotiations are underway. -    Poland, which was announced...
  • Income Tax Law amended in Federation of Bosnia and Herzegovina
    Bosnia/ May 2013 The amendments to the Law on Personal Income Tax that the parliament of the Federation of Bosnia and Herzegovina (FBIH) adopted on 20 December 2012, entered into force on 2 February 2013. The tax rate remained unchanged at 10% and it applies to both residents and non-residents. The main changes affect the definition of residents, deductions and...
  • New Tax Treaty negotiations between Bosnia and Herzegovina and Poland
    Bosnia/May 2013 Negotiations for an income and capital tax treaty between Bosnia and Herzegovina (B&H) and Poland are underway. Once signed and in force, the new treaty will replace the former Yugoslavia - Poland Income and Capital tax treaty concluded on January 10 1985, in relations between B&H and Poland. Below is a brief review of some terms agreed back...
  • Fiscal System in Bosnia and Herzegovina
    Bosnia/ March 2013 A country's fiscal system is the complete setup of government revenue and expenditures and the way in which government agencies carry them out. This system is governed by fiscal policy, which comes from decisions made by the governing body. The law on fiscal systems in the Republika Srpska came into effect at the end of 2008. While...
  • Free trade zones in Bosnia and Herzegovina
    Bosnia/ February 2013 Free trade zones are part of the customs territory of Bosnia and Herzegovina (BiH) managed by the founder of the free zone. The users of free zones do not pay taxes and contributions, with the exception of those related to salaries and wages. Investors are free to invest capital in the free zone, transfer their profit and...