Europe · Tax guide
Bosnia and Herzegovina
Bosnia and Herzegovina charges a single VAT rate of 17% across the whole country, while company profits are taxed at 10% by each entity: the Federation, Republika Srpska and Brčko District.
At a glance
- Corporate income tax
- 10%
- VAT
- 17%
- VAT registration
- KM 100,000
- Withholding on payments abroad
- 10%
All three entities
Single rate, state level
Annual turnover
Interest, royalties, services
Corporate income tax
Each entity has its own tax administration and law, but all tax profits at 10%. Monthly advances are paid and the annual return is due by 31 March.
VAT
VAT is a state-level tax run by the Indirect Taxation Authority, at a single rate of 17% with no reduced rates. Registration is required once annual turnover exceeds KM 100,000. Returns are filed monthly by the 10th.
Payments abroad
Interest, royalties and services paid to non-residents carry 10% withholding, with different dividend rules in each entity, unless a treaty lowers it.
Key dates
- By the 10th of each monthVAT return
- MonthlyIncome tax advances
- 31 MarchAnnual corporate income tax return
Figures and sources
4 figures- VAT rate (single rate)17%Under professional review
- Corporate income tax rate (Federation, Republika Srpska and Brčko)10%Under professional review
- Annual turnover above which VAT registration is requiredKM 100,000Under professional review
- Withholding on interest, royalties and services paid to non-residents (5% on dividends in the Federation)10%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Bosnia and Herzegovina based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Bosnia and Herzegovina (a local tax adviser in Bosnia and Herzegovina) before making compliance decisions.