Tax Year

The tax year is the calendar year in the Federation of Bosnia and Herzegovina (FBiH) / Republic of Srpska (RS) / Brčko District (BD).

Tax Return Filing

A taxpayer is required to file, correctly and accurately, a complete tax return (declaration) and pay the tax due to the tax authorities by 31 March of the following year.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the tax administration of the Republic of Srpska (RS) extended the deadline for filing the annual corporate income tax return for the year 2019 from 31 March 2020 to 30 June 2020.

Tax Payments

A taxpayer shall pay corporate income tax pursuant to the final tax declaration. Advance corporate income tax is determined based on the tax return of the previous year and has to be paid monthly (by the last day of the month for the previous month in FBiH and by the 10th day of the month for the previous month in RS / BD).

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the tax administrations of the Republic of Srpska (RS), the Federation of Bosnia and Herzegovina (FBiH) and the Brčko District of Bosnia and Herzegovina (BD) announced the following relief measures:

• In the Republic of Srpska (RS), taxpayers may submit a written request to tax authorities for deferral of tax payment for the year 2019 to the end of 2020;
• In the Federation of Bosnia and Herzegovina (FBiH):
  • suspension of  the advance tax payments for companies for the year 2020;
  • subsidized social security contributions to employers that have settled the social security contribution and income tax obligation as of February 2020 and that have experienced a drop in turnover of at least 20% compared to the same month in 2019. The subsidized social security contribution is up to BAM 244.85 per employee from the April 2020 period until the month after the state of emergency is ended;
  • companies qualifying for the social security subsidies are also exempt from interest on tax debts until two months after the state of emergency is ended; and
  • reduced social security contributions for employees of labor-intensive industries, such as mining, textile, and leather industries for the period 1 January 2020 until 31 December 2022. The reduced basis applies for employees whose salary is less than 60% of the average net salary in the FBiH and is equal to 29% of the average monthly gross salary paid from January to September in 2019;
• In the Brčko District of Bosnia and Herzegovina (BD):
  • exemption from advance tax payments is allowed for businesses that are closed due to the state of emergency and for businesses primarily engaged in production for export that were required to stop production. The exemption applies during the period of closure only (previously, until two months following the closure);
  • suspension allowed for the payment of interest on outstanding tax debts during the state of emergency until three months after the end of the state of emergency is now removed from 28 October 2020; and
  • subsidized social security contribution is granted up to BAM 860 per employee from the April 2020 period until the state of emergency is ended. The subsidy is available for businesses that have been closed due to the state of emergency provided they have settled the social security contribution and income tax obligation as of February 2020 and have experienced a drop in turnover of at least 20% compared to the same month in 2019.

Availability of E-Filing

The electronic filing of tax returns has been made mandatory in the Republic of Srpska from 30 March 2019.