All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Bosnia and Herzegovina: Special methods of tax debt payment for companies in Republic of Srpska declared unconstitutional


Dajana Topic

The Constitutional Court of the Republic of Srpska (RS) held its 191st regular session on December 22 2014. During this session, in accordance with constitutional and legal frameworks, decisions were made on the compliance of laws and other legal acts with the constitution and laws of RS. The Constitutional Court has ruled that certain regulations of the special methods of debt payment, which stipulate that the tax debt can be settled by payment of the entire amount of the principal debt in cash with the write-off of interest, are not constitutional, as well as converting the tax debt into equity in the assets of the tax debtor.

The Court has explained this decision with the fact that disputed regulations violated the principle of equality under article 10 of the Constitution. Namely, this created an unequal position for taxpayers who already paid their tax liabilities incurred in that period. This was, according to the Constitutional Court, an unequal relationship among taxpayers in respect of the same debt and it provided benefits for those who do not fulfill their obligations.

Generally speaking, payment of corporate income tax in Bosnia is supposed to be performed in monthly installments, while calculated according to the previous year's taxable profit.

In RS and Brcko district, monthly advance payments of tax are made by the tenth day of the current month for the previous month's liabilities. Final tax payments have to be made by the deadline for filing the annual tax return.

A taxpayer in RS may submit a request for tax assessment if the calculated income is above or below that of the previous year.

In the Federation of Bosnia and Herzegovina (FBiH) the tax due must be paid by the end of the current month for the previous month.

Dajana Topic (

Eurofast Global, Banja Luka Office/B&H

Tel: +387 51 961 610


More from across our site

Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
This week the Biden administration has run into opposition over a proposal for a federal gas tax holiday, while the European Parliament has approved a plan for an EU carbon border mechanism.
12th annual awards announce winners
Businesses need to improve on data management to ensure tax departments become much more integrated, according to Microsoft’s chief digital officer at a KPMG event.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree