Bosnia & Herzegovina: Bosnia & Herzegovina-Poland tax treaty approved

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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

Bosnia & Herzegovina: Bosnia & Herzegovina-Poland tax treaty approved

Vujasinovic-Igor-100

Igor Vujasinovic

On October 14 2015, the House of Peoples of Bosnia and Herzegovina (Upper House of the Parliament) approved the tax treaty signed between Bosnia & Herzegovina and Poland. The treaty was signed in June 2014, and was ratified by Poland on April 8 this year.

The taxes to which this treaty applies include the tax on income of individuals and the tax on profit of enterprises in Bosnia and Herzegovina and, on the Polish side, personal income tax and corporate income tax.

Per the treaty, withholding tax charged on dividends shall not exceed 5% of the gross dividend amount (in case of 25% participation) or 15% of the gross amount (in all other cases). As regards withholding tax on interests, the treaty stipulates a tax rate of 10%, with the same rate set to apply to withholding tax on royalties.

Article 22 of the treaty defines the method of avoiding double taxation. To prevent instances of double taxation, Bosnia & Herzegovina will allow a deduction from taxes in amount equal to the tax paid in Poland (not exceeding the amount of taxes calculated in Bosnia before such deduction is granted).

Given that both countries have ratified the agreement, it will be effective as of 2016. Once it is effective, the 1985 Agreement (concluded by Poland and the Socialist Federal Republic of Yugoslavia, which is still applicable) will be terminated.

Igor Vujasinovic (igor.vujasinovic@eurofast.eu)

Eurofast Global, Banja Luka Office /B&H

Tel: +387 51 961 610

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
The deal to acquire ITR's parent company is expected to complete by the end of May 2025
Gift this article