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

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Gift this article