Further to the amendments to the Corporate Income Law in Republic of Srpska, which entered into force as of 01 January 2017, the Ministry of Finance of Republic of Srpska adopted the corresponding Rulebook on Withholding Tax.
The new Rulebook prescribes the form of Statement on Income and Income Beneficiary to be used for the purpose of obtaining tax relief at source.
According to the Corporate Income Law in Republic of Srpska, in order to exercise the right for application of a lower tax rate or tax relief arising from an applicable DTT, foreign legal entities are required to provide the issuer with the following documents:
- Certificate of Tax Residence, not older than one year
- Signed and stamped Statement on Income and Income Beneficiary, whereby a separate one is required for each tax reduction / relief request.
The above Statement is not required if the income is only taxable in the country of tax residence of the beneficiary of thge income (the owner of the shares) - the Certificate of Tax Residence is sufficient in such case.
The Rulebook entered into force on 31 December 2017.
Impact on investors: The new Rulebook on Withholding Tax in Republic of Srpska introduced the form of Statement on Income and Income Beneficiary, which shall be used for the purpose of obtaining tax reduction, respectively tax relief at source.