Bosnia and Herzegovina legal and accounting and tax considerations in 2024

Bosnia and Herzegovina corporate taxation

  1. Corporate tax in Bosnia and Herzegovina is imposed at a standard rate of 10%. However, a lower rate of 2% applies to companies with i) not more than 9 employees and ii) annual turnover not exceeding US$65,000, not more than half of which is from one source. All business entities must register with the Bosnia and Herzegovina Tax Authority and file annual tax returns by end of March of the year following the end of the fiscal year;
  2. Capital gains in Bosnia and Herzegovina is treated as business profits and taxed at the rate of 10%;
  3. The Value Added Tax (VAT) in Bosnia and Herzegovina is levied at a standard rate of 17%. All companies planning to conduct profit making activities must register for VAT and file returns by 10th of the month following the taxable month;
  4. Withholding tax on dividends paid to non-resident companies is applicable at the rate of 5% only to companies established in the Federation of Bosnia and Herzegovina. Companies within Republic of Srpska are however exempt from withholding tax on dividends;
  5. A 10% withholding tax is applicable on i) interests ii) royalties and iii) technical services fees, paid to non-resident companies. This can however be reduced or exempted under a double tax treaty;
  6. Employers in Bosnia and Herzegovina must submit a monthly social security contribution of 10.5% of their employee’s gross salary;
  7. Business losses in Bosnia and Herzegovina can be carried forward for a period up to 5 years. A carryback of losses is however not permitted;
  8. Groups of resident companies directly or indirectly owned by one legal person may file consolidated tax returns only if they are i) 90% owned for companies in the Federation of Bosnia and Herzegovina or ii) 80% owned for companies within Republic of Srpska;
  9. Bosnia and Herzegovina has so far only concluded about 32 double tax treaties with different jurisdictions including the United Kingdom, France, China, UAE, Ireland, Malaysia among others;
  10. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our accounting and tax services in Bosnia and Herzegovina, please contact our in-house country expert, Ms. Janyl Irsalieva, directly:
Consultant at HC - janyl
  • Ms. Janyl Irsalieva
  • Client Relationship Manager
  • Contact me!
bh-cefta foreign trade chamber of bosnia and herzegovina bh-tax government of federation of B&H bh-foreign investment promotion agency bh-central bank