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Only 10% income tax!
By starting a business in Bosnia, entrepreneurs can enjoy numerous tax benefits and savings. The Bosnian tax system is among the most favorable ones in Europe. However, remember that Bosnia is not a member of the European Union.
The income tax for legal persons is 10%: it is calculated on a tax base and it is applied to all companies that provide a continued economic activity by offering goods and services.
Companies, that are liable to corporate income tax are:
– companies situated and making a profit in Bosnia and Herzegovina and
– a subject nonresident but making a profit in Bosnia and Herzegovina.
Besides having a low tax system, Bosnia also offers numerous tax incentives:
– customary exporters (with an annual export turnover of more than 30%) will be entitled to an exemption;
– other benefits are offered to companies that for a period of 5 years continuously invest 20 million KM (app. 10 million EUR), however, the first year’s investment must not be inferior to 4 million KM (app. 2 million EUR);
– companies that are hiring employees with disabilities.
Joint ventures are entitled to certain benefits in the first few years of their activity if they meet specific terms: 100% in the first year, 70% in the second year and 30% in the third year. Laws on foreign investments, however, ensure profit repatriation of investments in Bosnia and Herzegovina for all foreign investors.
Starting a business in Bosnia can be easy and fast with the help of Taxofia. Call us on 00386 31 679 430!