Bosnia and Herzegovina Corporate Income Tax

Corporate income tax rates, base and withholding

Corporate income tax is levied at a flat 10% in both entities and the Brcko District on accounting profit adjusted for tax purposes. Withholding tax applies to certain payments to non-residents and differs between FBiH and RS.

• Standard CIT rate — 10% (FBiH, RS and Brcko District) percent (FBiH / RS Corporate Income Tax Laws)
• Tax base — Accounting profit per financial statements, adjusted for non-deductible expenses and tax incentives (FBiH / RS Corporate Income Tax Laws)
• Scope for residents — Resident companies taxed on worldwide profit; non-residents taxed on profit attributable to a BiH permanent establishment / BiH-source income (FBiH / RS Corporate Income Tax Laws)
• Withholding tax on dividends (FBiH) — 5% percent (FBiH Corporate Income Tax Law)
• Withholding tax on interest and royalties (FBiH) — 10% percent (FBiH Corporate Income Tax Law)
• Withholding tax on dividends, interest and royalties (RS) — 10% on dividends, interest, royalties, IP, professional/entertainment services and other payments to foreign entities percent (RS Corporate Income Tax Law)
• Withholding tax on dividends (Brcko District) — No WHT due on dividend payments; 10% on most other payments to non-residents percent (Brcko District Corporate Income Tax Law)
• Treaty relief on withholding tax — Reduced rates available under BiH double tax treaties (e.g. 0% with Ireland; many treaties require 25% direct ownership for the lower dividend rate) (BiH Double Taxation Treaties)
• CIT return and payment deadline — By end of March following the tax year (with annual financial statements) ((approx — confirm exact date per entity)) (FBiH / RS Corporate Income Tax Laws)
• CIT advance payments — Monthly advance instalments based on prior-year liability, with final settlement on the annual return ((approx — confirm)) (FBiH / RS Corporate Income Tax Laws)