Bosnia and Herzegovina

Bosnia and Herzegovina - Civil Law
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Bosnia and Herzegovina taxes

If you want to start a business in Bosnia and Herzegovina, you have to know about taxation for a LLC (DOO) which is the most common company type in Bosnia and Herzegovina.

Bosnia and Herzegovina taxes income on a worldwide basis. The established percentage for offshore income, from our research, and your results may vary, is 10%. Bosnia and Herzegovina does not have known exemptions to bring in offshore income made internationally. Taxes are quite low in Bosnia and Herzegovina as the rate which a LLC (DOO) will pay tax is 10%. This ranks Bosnia and Herzegovina as 31st overall with regards to corp. taxation rate internationally.

The valued added tax rate in BA is 17.00%, that ranks Bosnia and Herzegovina as 109th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will contribute 10.5% to the equivalent of a social security fund and an employee will contribute 31%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 81hours. Contributing to this is the number of yearly labor tax payments, which is 11 in BA.

Thin capitalization standards are in force. Thin capitalisation refers to any sort of laws on companies' debt-to-asset ratios. Dividends received from a resident entity are tax-exempted. Dividends from foreign entities are usually subject to CIT, but foreign tax expenses may be credited against total tax liability. A dividend is a payment of a company profit, decided by the board of directors, to a particular class of shareholders. Dividends can be either stock, cash, or property. Capital Gains are included in Corporate Income Tax base. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. This means that the tax authorities expects LLC (DOO)'s to withhold 10% of interest payments made to non-residents. The dividends withholding tax rate is 5%. This should be interpreted that usually the relevant tax authorities expects LLC (DOO)'s to pay 5% tax of dividend payments to non-residents. The royalties withholding tax rate is 10%. This means that the relevant tax authorities expects legal entities to pay 10% tax of royalty payments remitted abroad. Taxes may be reduced or exempted under a tax treaty.
There is no known tax on wealth in Bosnia and Herzegovina. There are inheritance, transfer and real property taxes in Bosnia and Herzegovina. We are not aware of any frequently implemented R&D initiatives that provide tax relief in this country.

The above is not tax or legal advice for your individual facts and circumstances. We are able to to point you to a tax advisor in Bosnia and Herzegovina who can help you. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

It takes approximately 68 hours to file and prepare documents for a Bosnia and Herzegovina Civil Law.
The corporate tax is approximately 10% which is 35 in the world.

Owners of a company in Bosnia and Herzegovina are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.

The vat rate in Bosnia and Herzegovina is 17% which ranks 109 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
27Tax treaties
10%Offshore Tax
10%Corp rate
-Loss carryback years
68Corporate time
17%VAT rate
10%Capital gains
NoAEOI planned

Read this to learn about incorporating a company in
Bosnia and Herzegovina

We can help you form a company in Bosnia and Herzegovina. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Bosnia and Herzegovina, which is required by law.

Bosnia and Herzegovina Tax Treaties

CountryTypeDate signed
DTC 1983-09-01
Czech Republic
DTC 2007-11-20
DTC 1974-03-28
DTC 2007-06-21
DTC 1987-03-26
DTC 2012-10-18
DTC 1982-02-24
DTC 2006-05-16
DTC 2004-06-07
DTC 2008-02-05
DTC 1985-01-10
DTC 2010-12-16
DTC 2010-07-21
DTC 1981-11-02
DTC 1985-10-17
DTC 1982-02-22
DTC 2008-06-17
DTC 1980-06-18
DTC 1986-05-08
DTC 1988-12-02
United Kingdom
DTC 1981-11-06
DTC 1980-11-21
DTC 2004-08-24
DTC 2005-02-16
DTC 2009-11-03
DTC 1986-04-29
United Arab Emirates
DTC 2006-09-18

Country Info

National Flag of
Bosna i Hercegovina (bos)
Bosna i Hercegovina (hrv)
Боснa и Херцеговина (srp)
Area Code
Southern Europe
Native Languages