3_111
Unesi simbol:Pretraga
 Site Language Minimize
English site Bosna i Hercegovina
 Portal Search Minimize

VAT- Value Added Tax

 

Just recently, January 2006, Bosnia and Herzegovina has introduced Value added tax. The VAT rate in BIH is unique and the rate is 17%. It is applied equally to both entities in BIH. Entities are eligible taxpayer of VAT if they are a legal entity and have turnover in goods and services equal or expected to exceed the amount of BAM 50,000,00 (app. EUR 25,000,00) in 2005.

 

No VAT rate (0%) is applied to the turnover of goods and services in:

 

Ø       Post services,

Ø       Medical services and social insurance,

Ø       Education services,

Ø       Financial and cash services,

Ø       Lease of apartments or business property,

Ø       Insurance and reinsurance,

Ø       Trading of securities, management of Investment Funds, banking services

 

 

 

 

Foreign (Non-resident)

BIH(Resident)

Interest income:

Legal Entities

Private individual

Legal Entities

Private individual

RS

FBiH

RS

FBiH

RS

FBiH

RS

FBiH

Government Bonds/T-Bills

N/A

 

N/A

 

N/A

 

N/A

 

Corporate Bonds

N/A

 

N/A

 

N/A

 

N/A

 

Dividend income:

 

 

 

 

Cash

0%

15%

0%

15%

0%

15%

0%

15%

 

May be reduced by double tax treaty (see table)

May be reduced by double tax treaty (see table)

 

 

In form of shares

Ratios are decided by the issuer

Not practiced in the market

Ratios are decided by the issuer

Not practiced in the market

Ratios are decided by the issuer

Not practiced in the market

Ratios are decided by the issuer

Not practiced in the market


 

Country

Dividends

Interest

Royalties

Croatia

5 / 10

10

10

Serbia and Montenegro

5 / 10

10

10

Slovenia

5 / 10

7

5

Moldavia

5 / 10

10

10

Pakistan

10

20

15

United Kingdom; North Ireland

5 / 15

10

10

Netherlands

 

 

 

Sweden

5 / 15

 

 

Finland

5 / 15

 

10

Cyprus

 

 

 

Italy

10

10

10

Germany

 

 

 

Norway

15

 

10

Hungary

 

 

 

Egypt

 

 

 

Belgium

 

 

 

Poland

 

 

 

Slovakia

 

 

 

Romania

 

 

 

France

 

 

 

Denmark

5 / 15

 

10

Iran

 

 

 

 

*If the recipient company holds at least 25% of the paying company, the lower of two rates shown applies.

 

 

Countries with double taxation treaties at different stages of parliament procedures:

Country

Dividends

Interest

Royalties

Greece

5 / 15

10

10

Czech Republic

5

 

10

UAE **

5 / 10

 

5

Jordan

5 / 10

10

10

Malaysia***

5 / 10

10

8

Macedonia

5 / 15

10

10

Spain***

5 / 10

7

7

Russia

5 / 15

10

10

Austria

5 / 10

5

5

Katar

5 / 15

7

5

Turkey

5 / 15

10

10

Kuwait

 

 

 

Byelorussia

 

 

 

 

 

 

                       Capital gain

There are no taxes on capital gain in Federation of BIH.

 

 

                       Dividend Tax

 

Tax rate for dividend payments in FBIH is 15 %. This rate applies to residents and non residents (private and legal entities). Residents receive gross dividend and they are obliged to file for taxes with tax authorities in FBIH. Non residents receive net dividend and they are responsible for declaring themselves for reclaiming the tax.