Taxation in

Bosnia and Herzegovina Bosnia and Herzegovina ( sh, / , ), abbreviated BiH () or B&H, sometimes called Bosnia–Herzegovina and often known informally as Bosnia, is a country at the crossroads of south and southeast Europe, located in the Balkans. Bosnia and H ...

includes both federal and local taxes. Tax revenue in Bosnia and Herzegovina stood at 28.6% of GDP in 2013. Most important revenue sources include the

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

Social Security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...

contributions,

corporate tax A corporate tax, also called corporation tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at ...

, and the

value added tax A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end ...

, which are all applied on the federal level. Income tax is applied on a flat tax rate of 10% on income from both employment, interest, royalties, and capital gains. Social Security apply to most employment income. The employee pay 33% of gross salary, while the employer contribute 10.5% in addition. The Value-added tax in Bosnia is 17% as standard rate. Various Goods are services are exempt from VAT, including medical care, posting services, financial services, education and various smaller occasions. Stamp duties apply on various verifications of public documents. For incorporation purposes, stamp duties may range from EUR 50 to EUR 100. Corporate Taxes in Bosnia is levied at a flat rate of 10%.

History

Taxation in Bosnia has shifted over time, depending on the government that was in power. During the Yugoslav era taxation was similar to that of the Soviet, which typically relied heavily on a turnover tax and taxes paid by enterprises. In case of this two taxes they respectively made up 50% and 5% of total revenue in 1963.

References

{{Taxation in Europe

Economy of Bosnia and Herzegovina Government of Bosnia and Herzegovina