Taxes in Bosnia and Herzegovina


Taxes in Bosnia and Herzegovina, Taxation in Bosnia and Herzegovina, Taxes system in Bosnia and Herzegovina

There are three separate states and administrative units in Bosnia and Herzegovina: the Federation and RS Ko District this year. Tax rates and tax credits are different in all three entities and there is no central tax administration. centrally managed system of VAT was introduced at the state level on 1 January 2006, and changes were made in 2008 harmonization of corporate tax and income tax. Corporation tax Tax rate in the Federation was amended with effect from 1 January 2008 to equal 10% rate in the RS and the Br ko District. Non-Resident subject to 5% tax on dividends, as well as the 10% withholding tax, which includes gains from interest license fees, tax, insurance and telecommunications. All permits granted under the old regime remain force throughout the period in which they were granted (see general tax incentives, below). Income Tax Br ko District has a modern system of income tax from individuals, which was introduced in 2004 and provides a lump sum 10%. Federation adopted the new Income Tax Law for 2008, also calls for a linear tax amounting to 10% and provides for deductions including to mirror as financial and invalidity pensions. Before the end of this law, the income tax imposed by Federation depending on the type of income. RS maintains this structure, in which income tax is from 0% to 15% of net income. Country Report for Investors and Exporters of Bosnia and Herzegovina Seite 9 VAT VAT is charged jointly on behalf of all three entities in the state in 17% of the January 1, 2006. This tax applies to turnover of sales of goods and services as well as import goods. Small and medium-sized businesses with an annual turnover of less than 50,000 hp are exempt from VAT. VAT must be paid every month, in which VAT paid is deductible. Excise Duties Oil and petroleum products, tobacco and tobacco products, alcohol and alcoholic beverages, soft drinks and coffee excise duty. The rules make no distinction between the import and export. Property Taxes Cantons are responsible for the acquisition of real property taxation. The rates differ only slightly, and ranges from 5 to 8%. In addition, there is a tax on net assets regulated by the cantons. Municipal Taxes municipal taxes include a number of charges, such as rental income, interest, royalties, profits of the company. General Tax Incentives The current system provides generous tax incentives, including a total exemption in the free zones in the first five years. Different rules apply to the Federation and the RS. Companies that are wholly owned by foreign entities are exempt Income tax for the first five years. Joint ventures with foreign participation of over 20% receive tax benefits in both Federation and RS, which are based on the ratio of foreign investment. investment assets are exempt from tax in RS. Customs and Trade Barriers Tariffs in Bosnia and Herzegovina, range from 0% to 15%. Most of Bosnia and Herzegovina are given duty free status in the EU on the basis of the preferential status granted in 2000.





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