Law and regulation of Covid-19 tax relief in Bosnia & Herzegovina

Value Added Tax

  • Council of Ministers have adopted a Decision on indirect tax exemptions and tax refund of already paid indirect taxes on equipment and resources donated by domestic and international entities for prevention and suppression of COVID-19. This is related to masks, gloves, disinfectants, medical protection suits, ventilators and similar.

Corporate Income Tax

  • Both FBiH and RS tax authorities have extended deadlines for submission of annual tax returns. In FBiH, a new deadline is set to April 30, 2020, while RS has extended its deadline to June 30, 2020. In RS all payments can be made in installments.

Social Security Contributions or Payroll Tax

  • In FBiH – annual tax returns submission deadline is extended to April 30, 2020. Deadline for monthly payrol and social contributions returns for March are extended to April 30, 2020, while a new deadline for April, 2020 returns is May 31, 2020.
  • In RS – submission of annual PIT returns deadline is prolonged to June 30, 2020. Same is applicable to other taxes that will be due for payment on March 31, 2020. All payments can be made in installments.

Other relief measures

  • In both FBiH and RS Deadlines for submission of other direct taxes returns are extended mostly for one month.
  • In FBiH, all tax returns and other registration data forms are to be sent by post, e-mail or fax.
  • Per decisions of the banking agencies moratoriums and/or grace periods for loans is possible.

Additional comments

  • Numerous decisions which support or limit certain activities are adopted depending on the type of business.
  • Certain business incentives are planned.