Headquarters Company and its subsidiaries may form a group of companies for filing consolidated tax returns in FBiH subject to certain conditions. Following conditions are to be met for filing consolidated tax return:

• All entities in the group are residents of the FBiH
• Parent entity / head office company holds either directly or indirectly atleast 50% of its subsidiaries
• Parent entity must file a request for consolidated tax return with the authorized branch of the tax authorities
• Each entity in the group is required to file its tax balance and the parent entity is required to file the consolidated tax balance

Losses of one or more entities are allowed to set off against profits of other entities in the group. Each entity is liable for their share of tax calculated in the consolidated tax balance proportionate to their individual tax balance profits and the parent entity is liable to pay tax computed on consolidated balance. Once tax consolidation is approved by the tax authorities, then consolidated return must be filed for a minimum period of 5 years.

There is no provision of group taxation under the laws of RS.

An affiliated / associated group of companies located in BD can file consolidated tax return. Affiliated group includes one or more legal entities in BD connected through ownership of stock and have a common parent entity. The parent entity holds at least 80%of the stock in one of the legal entities which is a part of the affiliated group.