Bosnia and Herzegovina Adopts Amendments to Law on Profit Tax Including for Thin Capitalization and Depreciation

On 16 January 2020, the government of the Federation of Bosnia and Herzegovina adopted amendments to the Law on Profit Tax. Key amendments include:

• Changes in the thin capitalization rules to exclude leasing companies from the interest deduction limitations (banks and insurance companies already excluded); and
• Changes in depreciation rules for tax purposes to provide that both owned and leased assets are considered depreciable fixed assets in accordance with International Financial Reporting…