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

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 from across our site

This week European Commission officials consider legal loopholes to secure minimum corporate taxation, while Cisco and Microsoft shareholders call for tax transparency.
The fast-food company’s tax settlement with French authorities strengthens the need for businesses to review their TP arrangements and documentation.
The full ALP model will be adopted through a new TP regime, which is set to boost the country’s investments and tax certainty.
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.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree