New DTT between Romania and Bosnia & Herzegovina enters into force

Romania
UniCredit Bank S.A.
Summary: 
Summary: Starting with May 18th, 2018 the new Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income concluded between Romania and Bosnia & Herzegovina has entered into force.
Wed, 29/08/2018

According the new Treaty, the taxes will be applied for the income obtained starting with 1st of September 2019 and the new tax rates are as follows:

Dividends

(i) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;

(ii) 10 per cent of the gross amount of the dividends, in all other cases.

Interest

(i) 7 per cent of the gross amount of the interest.

Royalties

(i) 5 per cent of the gross amount.

 

Impact on investors: The new DTT between Romania and Bosnia & Herzegovina will create a favourable tax environment for eligible investors from both countries.