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Some of the novelties in withholding tax ("WHT") regulations in Federation of Bosnia and Herzegovina

28/12/2016

New Law on corporate income tax in Federation of Bosnia and Herzegovina ("CIT FBiH") and the recently adopted Rulebook on application of the said Law have established some novelties in rules regarding withholding tax. Namely, pursuant to Article 38 of the CIT FBiH a list of services subject to WHT was expanded, whereby in addition to the previous one the following services are listed:

  • Entertainment services and sport event services;- Lease of movables and immovable property;
  • Telecommunication services;
  • Sale of shares and immovable.

It should be noted that some specific rules are introduced when it comes to services related to the sale of shares and immovable property. Accordingly, pursuant to such rules the non-residents are obliged to pay the WHT on his/her/its income from the sale of shares and sale of immovable within a period of 30 days after such income is generated.

In addition, the new legislation also provides other novelties that have to be taken into account in future cross border business operations.

Authors

Picture of Indir Osmic
Indir Osmić
Attorney-at-Law
Sarajevo