Bosnia and Herzegovina: Bosnia and Herzegovina ratifies updated treaty with Romania

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bosnia and Herzegovina: Bosnia and Herzegovina ratifies updated treaty with Romania

intl-updates-small.jpg

On June 27 2017, the Prime Minister of Bosnia and Herzegovina adopted a decision ratifying the income tax treaty between Bosnia and Herzegovina and Romania, which was signed on December 6 2016. When it becomes effective (pending Romania's ratification), the treaty will replace the former Yugoslavia–Romania income and capital tax treaty of 1986.

The new treaty provides for the following withholding tax reliefs:

  • Dividends may be taxed up to 5% of the gross amount paid in cases of participations exceeding 25% in the distributing entity, or at a 10% rate in all other cases;

  • The interest withholding tax rate is limited to 7% (previously 7.5%) of the interest income. Full relief may be available in cases of a government authority beneficiary; and

  • The new treaty defines a 5% withholding tax on royalties (previously 10%).

The updated treaty is expected to enable faster and easier flow of capital, goods, services and knowledge, and to improve both tax compliance and trade exchange between the countries, which amounted to €150 million ($178 million) in 2016.

tadic.jpg

Stevo Tadic (stevo.tadic@eurofast.eu), Banja Luka/Sarajevo

Eurofast Global, Bosnia and Herzegovina

Tel: +387 51 961 610

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

In an exclusive interview with ITR, Ian Gary calls for a central public CbCR database and bemoans the US’s lack of involvement in international tax transparency
Reckitt Benckiser is to divest its Essential Home business, which includes more than 70 brands, to private equity firm Advent International
In the first of a new series of weekly opinion pieces, ITR Editor Tom Baker reflects on the OECD’s attempts to sanitise the US’s brazen pillar two negotiations
The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
The tax agency has increased compliance yield from wealthy individuals but cannot identify how much tax is paid by UK billionaires, the committee also claimed
Saffery cautioned that documentation requirements in new government proposals must be limited if medium-sized companies are not exempted from TP
The global minimum tax deal is not viable without US participation, Friedrich Merz has argued
Section 899 of the ‘one big beautiful’ bill would have spelled disaster for many international investors into the US, but following its shelving, attention turns to the fate of the OECD’s pillars
Gift this article