The Federation of BiH Ministry of Finance has adopted amendments to the rulebook on the implementation of Corporate Income Tax Law in the FBiH. The amendments came into force as of 16 February 2017.
The most notable changes are:
- With respect to documentation requirements where the corresponding Double Tax Treaty (DTT) stipulates tax relief at the source
- In order to exercise rights stated in the DTTs, foreign institutional investors are required to provide the issuer with the following documentation:
- Declaration for purposes of tax relief at source signed and stambed by the investor and the competent authority in the investor´s country, or
- Declaration for purposes of tax relief at source signed and stambed by the investor and the Certificate of Tax Residence (not older than one year) if verification by the compentent authority is not possible
Amendments have introduced the updated declaration for purposes of tax relief at the source.
Prevously, a Certificate of Tax Residence was mandatory. Statements of beneficial ownership of the shares is not a requirment anymore.
Related Newsflash: Rulebook on Implementation of Corporate Income Tax Law in FBiH
Impact on investors: Documentation requirements for applications of DTTs in FBiH have changed.