Summary: New DDT between Bosnia and Herzegovina and Macedonia became effective as of 01 January 2015.
Please be kindly informed that The Double Tax Treaty (DTT) between Bosnia and Herzegovina and Macedonia, signed on 24 September 2013 and ratified on 8 May 2014, became effective as of 1 January 2015. The agreement is applicable to the income, profit and assets of private and legal entities.
According to the DTT, dividend and interest income can be subject to withholding tax in the country of residence of either the issuer or the beneficial owner. If the withholding tax is applied in the country of residence of the beneficial owner, the maximum applicable tax rates are as follows:
Dividends:
- 5% if the beneficial owner is a non-resident company with minimum share of 25%
- 15% for all other beneficial owners
Interest Income:
- 10% for all beneficial owners
Please take note that:
- in the Federation of Bosnia and Herzegovina, dividend income received by non-resident legal entities is subject to withholding tax at the rate of 5%, while dividend income of private individuals is not taxable
- in Republic of Srpska, dividend income received by non-resident private individuals are subject to withholding tax at the rate of 10%, while dividend income of legal entities are is not taxable
- interest income is not subject to withholding tax in Bosnia and Herzegovina
The updated DTT Countries List is available in Documents section within our country's section on the UniCredit GSS website. ( http://gss.unicreditgroup.eu/markets/bosnia-and-herzegovina/documents )
Impact on investors: The Double Taxation Treaty between Bosnia and Herzegovina and Macedonia entered into force on 01 January 2015. The agreement is applicable to the income, profit and assets of private and legal entities.