Bosnia and Herzegovina: Tax Treaty between Bosnia & Herzegovina and Azerbaijan
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

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

Bosnia and Herzegovina: Tax Treaty between Bosnia & Herzegovina and Azerbaijan

topic.jpg

Dajana Topic

A tax treaty between Bosnia & Herzegovina (B&H) and Azerbaijan for the avoidance of double taxation and the prevention of fiscal evasion (DTT) related to income and capital taxes was concluded on October 18 2012. Following ratifications from both parties, the DTT entered into force on December 26 2013 and became aplicable as of January 1 2014. The treaty is generally based on the OECD Model Convention.

In B&H, the treaty covers the tax on income of physical persons, the tax on profit of legal entities and the tax on property.

On the other hand, in Azerbaijan the treaty applies to the tax on income of individuals, tax on profit of enterprises, the tax on property and the land tax.

Dividends (such as income from shares, founders' shares or other rights excluding debt-claims, participation in profits) arising in one state and paid to a resident of the other state, may be taxed in that other state and vice versa. The treaty defines that the tax levied on dividends shall not exceed 10% of the gross amount of the dividends, in case if the beneficial owner of the dividends is a resident of the other contracting state.

In regards to interests, the treaty generally stipulates a tax rate of 10%. Interest arising in one state shall be exempt from tax in that state if the payer of the interest is the government of that state or a political or administrative-territorial subdivision or a local authority or Central Bank, or if the interest is paid to the government of the other state (including political, administrative or territorial subdivisions, local authorities or Central Bank) or if the recipient of the interest is a financial institution fully owned by the other state.

The royalty withholding tax rate has been set at 10%. Again, as in the case of interest, an exemption applies if the royalties are derived by the state, government, or a payer resident of that state.

Dajana Topic (dajana.topic@eurofast.eu)

Eurofast Global, Banja Luka Office

Tel: +387 51 340 680

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

Experts from TP tech provider Aibidia also warned ITR that companies ignoring pillar two is a ‘huge issue’ and a ‘red flag’
Hanno Berger was originally handed an eight-year sentence over an estimated $11 billion tax fraud; while in other news, France calls for minimum tax on the super-rich
Amount B is meant to increase simplicity and reduce uncertainty, but US TP specialists claim it may lead to controversy
Tax Foundation economist Alan Cole also signalled that pillar two has a 'considerable chance' of failing
The Labour Party is working hard to convince business that it will bring stability to tax policy if it wins the next UK general election. But it will be impossible to avoid creating winners and losers
Burrowes had initially been parachuted into the role last summer to navigate the fallout from the firm’s tax leaks scandal
Barbara Voskamp is bullish on hiring local talent to boost DLA Piper’s Singapore practice, and argues that ‘big four’ accountants suffer from a stifled creativity
Chris Jordan also said that nations have a duty to scrutinise the partnership structures of major firms, while, in other news, a number of tax teams expanded their benches
KPMG has exclusive access to the tool for three years in the UK, giving it an edge over ‘big four’ rivals
But the US tax agency’s advice is consistent with OECD guidance and shouldn’t surprise anyone, other experts tell ITR
Gift this article