Republic of Srpska Amends Permanent Establishment and Transfer Pricing Rules

The National Assembly of the Republic of Srpska, Bosnia and Herzegovina has approved amendments to the Law on Profit Tax that apply from 1 January 2026. This includes amendments to clarify the determination and treatment of a permanent establishment (PE):

• A construction, installation, or assembly site (including related supervisory activities or natural resource exploration) will now be considered a PE if the work lasts longer than 12 months; and
• Profits attributed to a PE must be calculated…