3 Law on Corporate Tax of F BiH

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The Law is published in the FBiH Official gazette no. 97/07, issued ece!be" #$, %007.

LAW ON PROFIT TAX

December 31, 2007



LAW ON PROFIT TAX

I BASIC PROVISIONS

1. Gener! Pr"#$%$"n%

Article 1

(1) Profit tax throughout the territory of the Federation of Bosnia and Herzegovina(hereinafter: the Federation) shall be determined and aid in accordance !ith the rovisionsof this "a! and regulations issued on the basis of this "a!#

($) %istribution and allocation of the revenues from the rofit tax shall be defined bysearate la!#

II TAXPA&'R

Article $

(1) A taxayer shall be an enterrise and other legal entities erforming an indeendent ermanent economic activity through the sales of goods and rovision of services on themar&et in order to ma&e rofit (hereinafter: taxayer)#

($) A taxayer from the Paragrah 1# of this Article shall be a resident of the Federation'ma&ing rofit on the territory of the Federation and abroad#

()A taxayer shall be a nonresident ma&ing rofit on the territory of the Federation#

1. Per%"n% n"( %)b*ec( (" +r"$( (- +men(

Article

(1) *he taxayers !ho shall not be sub+ect to rofit tax ayment are the follo!ing:

1) ,entral Ban& of Bosnia and Herzegovina$) Bodies of Federation' cantonal and local government'

) Federation' cantonal and local institutions' bureaus' religious communities' olitical arties' union' chambers' associations' artistic associations'firefighters- associations' tourist associations' sorts clubs and associations'foundations' trust funds' humanitarian organizations etc' on the basis of:income from the budget or ublic funds' sonsorshis or donations inmoney or goods' interest' dividends' membershi fees' income from sales or



transfer of goods excet goods being used or that !ere used for businessactivity erformance#

($) .hen the entities from the Paragrah 1' /tem ) of this article erform the activitynonrelated to their registered activity' they shall be sub+ect to tax ayment for the rofit

generated through erformance of that activity#

2. Re%$/en( n/ n"nre%$/en(

Article 0#

1# A esident in the sense of Art# $' Paragrah $# of this "a! shall be a legal entity !ith rincial lace of business (H2) (egistration) entered into the registry of enterrisesin the Federation or !ith actual management and suervision over the businessactivities in the Federation#

$# A 3onresident from the Art#$# Paragrah shall be a legal entity established and !ithH2 or actual management and suervision over the business activities outside of theFederation and business activities in the Federation are carried out through the branchoffice or temorary establishment#

3. B)%$ne%% )n$( " n"nre%$/en(

Ar($c!e .

1# Business unit of a nonresident from the article 0# Paragrah#$ shall be ermanent laceof business !here nonresident carries out' comletely or artially' ermanent activityin the territory of the Federation#

$# *he business unit of a nonresident shall be considered to be: Head4uarters of the management

field office branch office

factory !or&sho

lace of exloitation of natural resources construction site (buildings or refabricated buildings) !hen the !or& duration

exceeds 5 months roviding consulting and business services !hen duration exceeds continuous

months over the 1$month eriod agent acting indeendently on behalf of nonresident' related to the activities of

entering into contracts in the name and on behalf of nonresidents' &eeingstoc&s of goods delivered on behalf of nonresident#

Article #5

Business unit of a nonresident shall not be considered: remises used by a nonresident solely as a storage or for delivery of goods' location

!here the stoc&s of goods are &et solely for storage' exhibition or delivery or rocessing carried out by a third arty



lace of business used solely for urchase of goods' rearation or erforming auxiliaryactivities or gathering information#

III TAX BAS'

1. Gener! +r"#$%$"n%

Article 6

(1) *ax base shall be taxable rofit of the taxayer determined in tax balance#($) *axable rofit shall be determined by ad+usting taxayer rofit declared in the rofit

and loss sheet in the manner rescribed by this "a!# () *axable base shall include rofit from li4uidation(0) *axable base shall include caital gains (accumulated rofit) determined in balance

sheet#

2. '-+en/$()re% /*)%(men(

Article 7

%etermining taxable rofit shall recognize only exenditures in the amounts defined bythe rofit and loss sheet in accordance !ith the accounting regulations and /nternationalAccounting 8tandards (hereinafter: /A8)' excet the exenditures this "a! rescribes differentmanner of determining for#

Article 9

(1) aterial exenses shall be recognized in the amounts sho!n in rofit and loss sheet'in accordance !ith accounting regulations and /A8' by alying the method of average rice#

($) ,alculation of urchasing value of merchandize sold shall be erformed in themanner described in the Paragrah 1 of this article#

() .hen the material sulies and merchandize are recorded er calculation ricesdeviating from the urchase rices' the calculation of the deviation (difference) shall be done inthe manner bringing costs of materials' i#e# urchase values of goods sold on the amountsresulting from the alication of average rice method#

Article 1;

(1) ,osts of earnings' i#e# ersonal income of emloyees (comensations and other material receiving) not holding characteristics of salary' shall be recognized in the amountcalculated as business exenditures u the amount rescribed by secial regulations (er diem'use of rivate vehicle for business uroses' meals during !or&ing hours and transort to!or&####)#

($) /ncome of emloyees or other ersons' arising from distributions on the basis of theright to articiate in taxayers- rofit shall not be exenditures in the sense of tax balance#



Article 11

(1) eresentation costs' ertaining to business activity' shall be recognized as

exenditures in amount of ;< of reresentation costs#

($) %onations for humanitarian' cultural' educational' scientific and sorts uroses(excet rofessional sorts) shall be recognized as exenditure in amount of u to < of totalincome in tax eriod#

() =xenses of the membershi fees to the chambers shall be recognized asexenditure in the amount not exceeding ;#1< of total income in tax eriod if these membershifees are rescribed by the "a!#

(0) =xenses based on sonsorshi shall be recognized in amount of $< of total incomein tax eriod#

Article 1$

(1) >nly reservations rescribed in this article shall be recognized as exenditures intax balance#

($) /n accordance !ith the Paragrah 1 of this Article' as tax allo!able exenditureshall be recognized exenditures of reservation for ris&s and exenditures in accordance !ith thela!s and other regulations and reservations based on the contract for the follo!ing:

eservations for severance ay aid u to the rescribed amount' eservations for exenditures of natural resources rene!al' eservations for exenditures in guarantee timeframes' eservations for initiated court rocedures#

() /n the case !hen reservations from the Paragrah $ of this Article are not used !ithindue dates' the reservations shall be treated as income#

Article 1

1# All costs ertaining to research and develoment shall be recognized as exenditures intax balance#

$# *he exenses ertaining to roviding scholarshis to full time students shall berecognized as exenditures in tax balance#

Article 10

(1) *he exenses occurring based on the !riteoff of disutable and susectable billsreceivable shall be recognized in tax balance as exenditures#

($) eceivables are considedred as disutable if they are not collected !ithin 1$months from the due date' if taxayer initiated la! suit or filed re4uest to relevant court'enforced collection !as initiated' if these receivables are art of ban&rutcy rocedure of debtand if agreement !as reached !ith debtor in rocedure of ban&rutcy or li4uidation#

Article 1?



*he contributions aid by the emloyer' fees and other ublic duties that do not deendon business results shall be recognized as exenditures in tax balance#

Article 15

(1) eserves for general credit losses in ban&s that are formed in accordance !ith secialregulations shall be recognized as exenditures in tax balance#($) eserves that insurance and reinsurance comanies must form in accordance !ith

secial regulations shall be recognized as exenditures in tax balance# () *he reserves from the Paragrah 1 of this Article shall not exceed $;< of rofitdeclared in rofit and loss account#

Article 16

(1) *otal calculated interest shall be recognized as exenditure in tax balance excet:1) /nterest calculated at loans mar&ed !ith transfer rice that shall be reduced in themanner rescribed in the Article 07 of this "a!'$) /nterest calculated due to untimely ayment of taxes' contributions and other ublicduties#

($) Financial fines and enalties aid by the taxayer for the violations shall not berecognized in tax balance as exenditures#

() Profit tax on rofit of comanys aid as !ell as donations to olitical arties shallnot be recognized as exenditure in tax balance#

3. De+rec$($"n

Article 17

(1) %eduction based on dereciation shall be allo!ed only related to the roertysub+ect to dereciation#

($) %ereciation of fixed assets shall be recognized as exenditure in tax balance u theamount established by roortionate method of alication of the highest annual dereciationrates' rescribed by the regulatory act (byla!)#

() *he roerty being dereciated and of urchase value under 1';;; @ can be fullydeducted in the urchase year' conditioned that the roerty !as ut in function#

(0) Purchase value of comuter hard!are and soft!are can be deducted fully in theyear of urchase#

(?) %ereciated assets once dereciated shall not be reincluded in dereciationcalculation for the uroses of tax balance#

(5) =xenditures of dereciation shall be considered to be the increases in the value offixed assets due to the revalorization#

0# Acce!er(e/ De+rec$($"n



Article 19

(1) *he taxayer holds the right to accelerated dereciation of fixed assets under theconditions defined by this "a!#

($) Accelerated dereciation shall be conducted in the manner described in the Article17' Paragrah $' er rates that may exceed the rescribed rates by u to ?;<##

() ight to accelerated dereciation the taxayer shall hold for fixed assets used for the follo!ing:

1) Prevention of air' !ater and land ollution and noise reduction$) =ducation and training of staff

. Inc"me A/*)%(men(

Article $;

/ncome for assessment of taxable rofit shall be income from the sales of roducts'services' goods' materials and financial' extraordinary and other income calculated in the rofitand loss balance in accordance !ith accounting regulations and /A8#

Article $1

(1) %ividends realized based on articiation in the caital of other taxayer shall not beincluded in the tax base#

($) %ividends shall' in the sense of this "a!' be considered shares in the rofit of enterrise#

Article $$

/ncome on the basis of collected !ritten off debts in the case !hen these !ere includedin the income in revious eriod and !ere not sub+ect to tax allo!able or recognizedexenditure shall not be included in the tax base#

Article $

(1) /n the value of stoc&s of unfinished roduction' semiroducts and finished roducts for the calculation of taxable rofit the exenses of roduction shall be recognized inaccordance !ith accounting regulations and /A8#

($) alue of sulies calculated in accordance !ith the Paragrah 1 of this Article shallnot exceed sales value on the day of balance filing#

. T- Tre(men( " L"%%e%



Article $0

(1) .hen' uon tax base reduction for the rofit tax' the losses sho! in tax balance' thenthe loss declared in tax balance can be transferred against the rofit in future tax eriod' but

not exceeding five years#

($) *he loss from the Paragrah 1 of this Article that could not be deducted in the currentyear shall be comensated in the first consecutive year so that the tax base shall al!ays bereduced for the loss of rior date#

() *ax loss of legal entity occurring outside of the territory of the Federation' in theeublic of 8rs&a or Brc&o %istrict as !ell as abroad shall not be recognized#

IV TAX TR'AT'NT OF C4ANG' IN FOR OF COPAN& AND LI56IDATION OFTAXPA&'R

1# ,hange of form of comanyArticle $?

(1) /f taxayer changes legal form (merger' ac4uisition' division) and &ees recording boo&&eeing value of roerty and liabilities' change of legal form shall not haveimact on taxation#

($) /f boo&&eeing values are not used in the case from Paragrah 1' difference ofcaital that derives from change of legal form shall be considered as taxable rofit#

() ights and duties of taxayers !ho !ent through merger' ac4uisition or divisionshall be ta&en over by legal successor from tax legal relationshi#

(0) *axayers !ho are sub+ect of merger' ac4uisition or division shall send financialreorts and tax declaration !ith tax balance to the *ax Administration calculatingfrom the day before merger' ac4uisition or division#

Article $5

(1) /f there is continuity in taxation in case of merger' ac4uisition or division' taxayer' itshall be considered that taxayer continues activity and it shall not have imact on taxation#

($) ,ontinuity in taxation from Paragrah 1 of this Article exists if there is no change inestimate of roerty and liabilities in transfer to legal successor#

() Provisions of Paragrahs 1 and $ shall be alied regardless if it is one or morecomanies that did transfer i#e# ne!ly created comanies#

Article $6

(1) Profit determined in rocess of taxayer li4uidation shall be sub+ect to taxation#($) Profit of taxayer in the course of li4uidation rocess shall be determined by

comarison of net assets in the beginning and in the end of li4uidation rocess#() *axayer that is sub+ect of li4uidation rocess shall be obliged to close business boo&s

and reare li4uidation oening balance i#e# annual calculation on the day !henli4uidation rocess starts#

$# "i4uidation



Article $7

"i4uidation surlus (remaining net assets) that belongs to o!ner after taxation and ayment of boo&&eeing value of net assets shall be considered as dividend in terms of this"a!#

Article $9

.hen the accounting value of the share exceeds the amount of li4uidation surlus' theo!ner from the Article $5 of this "a! shall declare loss that shall not be recognized as taxallo!ed reduction of the tax base#

V TAX RAT'Article ;

Profit tax shall be aid er rate of 1;< onto the assessed tax base from the *axBalance#

VI TAX INC'NTIV'S

1# T- 4"!$/%

Article 1

A taxayer !ho shall realize the exorts exceeding ;< of total income (turnover)' !ithin thetax year rofit is determined for shall be exemt from rofit tax for that year#

Article $

1) A taxayer investing in roduction not less than $; million @ over the eriod of ?consecutive years in the Federation shall be exemt from rofit tax during the eriod of ? years' starting !ith the first year !hen taxayer has to invest at least four million@#

$) 8hall the taxayer from the Paragrah 1# of this Article' over the eriod of ? years failto reach rescribed investment amount' she shall lose the right to tax exemtion' andunaid rofit tax shall be determined according to the rovisions of this "a!' andincreased for the enal interest that shall be aid onto the untimely aid ublicrevenues#

Article

A taxayer emloying more than ?;< of disabled ersons and ersons !ith secial needs for more than one year shall be exemt from rofit tax for a year in !hich more than ?;< of disabled ersons and ersons !ith secial needs !ere emloyed#

Article 0

A taxayer C business unit of a nonresident' established !ithin or !ith the H2 or managementand suervision of business activities outside of the Federation' but !ithin Bosnia andHerzegovina' shall be exemt from rofit tax ayment for rofits realized in the Federation#



VII 'LIINATION OF D6BL' TAXATION OF PROFIT R'ALI'D O6TSID' T4'F'D'RATION, B6T WIT4IN BOSNIA AND 4'R'GOVINA

Ar($c!e 3

*axayer C resident shall be able to reduce calculated and aid rofit tax that his non resident business unit aid on rofit included in rofit of taxayer outside the Federation' but !ithinBosnia and Herzegovina

Article 5

*he taxayer from the Article ? shall be obliged to rovide the evidence on amount of rofitand rofit tax aid by the nonresident business unit to the authorized unit of the *axAdministration of the Federation (hereinafter: the *ax Administration)#

VIII8 TAX CR'DIT FOR TAX PAID O6TSID' BOSNIA AND 4'R'GOVINA

Article 6

(1) .hen a resident shall generate an income or rofit through the business activities erformed abroad (directly or through its business unit) and !hen the rofit tax is aid onto these' the tax aid to the other +urisdiction shall be credited against theFederation rofit tax' u to amount of rofit tax that !ould have been aid in theFederation for such rofit#

($) For recognition of tax aid abroad from Paragrah 1 of this Article' taxayer isobliged to rovide *ax Administration !ith evidence on ayment of tax abroad#

Article 7

atified treaties (agreements' conventions) on avoidance of double taxation' signed by Bosniaand Herzegovina shall be imlemented and revail over this "a! !hen taxing nonresidents#

Article 9

1) Profit tax calculated to the mother comany C resident of the Federation can bereduced for the amount corresonding to the amount aid by its nonresident

branch outside Bosnia and Herzegovina' on the rofit included into the overallincome of mother comany#

$) other comany' in the sense of this "a!' shall be a legal entity o!ning shares or stoc&s in other legal entities' under the conditions stiulated in this "a!#

) A Branch in the sense of this "a! shall be a legal entity articiating in the e4uityof other comany' under the conditions stiulated in this "a!#

Article 0;



other comany' o!ning $?< or more shares of a nonresident branch for at least one year rior to income statement filing' shall 4ualify for a tax credit from the Article 9##

IX WIT44OLDING TAX

Article 01

(1) /n terms of this "a!' !ithholding tax reresents a tax that is calculated on incomethat non resident generates in the Federation#

($) .ithholding tax shall be calculated and aid by the ayer at income ayment# *he ayer shall be obliged to file the reort to the *ax Administration !ithin 1; days uon the dayof the ayment on calculated and aid !ithholding tax#

() *he base !ithholding tax is calculated on is gross amount aid by the resident ofthe Federation to nonresident based on

interest' royalties and other intellectual roerty rights' comensations for mar&et research' tax advice' auditors- services' fun and sorts events '

insurance remiums for insurance or reinsurance in the Federation' Dd telecommunications services bet!een the Federation and abroad as !ell as all otherservices made in the Federation#(0) .ithholding tax shall be aid er rate of 1;<' and on dividends er rate of ?<##

?) .ithholding tax shall not be aid to the interest aid for:1) sales of e4uiment on credit that a taxayer urchases for doing business

$) sales of goods through installments to the taxayer ) the o!ners of the bonds' state and cororate' nonresident legal entities onto thedeosits# 0) on deosits

X GRO6P TAXATION

1. T- c"n%"!$/($"n

Article 0$

(1) other comany and its branches shall form the grou of comanies in the sense of this "a! !hen there is a direct or indirect control bet!een them in not less than 9;< share#

($) Erou of comanies shall hold the right to re4uest tax consolidation if allcomanies in the grou are residents of the Federation#

() e4uest for tax consolidation shall be filed to the authorized branch office of the*ax Administration by mother comany#

Article 0



(1) =ach grou member shall be obliged to file its tax balance and mother comany shallfile consolidated tax balance for the grou of comanies#

($) ,onsolidated tax balance shall offset losses of one or more comanies against the rofitof other comanies in the grou#

() /ndividual grou members shall be liable for the tax calculated er consolidated balance roortionately to the rofit from the individual tax balance and the ayer of calculated tax er consolidated balance shall be mother comany#

Article 00

(1) >nce aroved tax consolidation shall be alied for the consecutive eriod of not lessthan five years#

($) .hen one or several or all comanies in the grou later decide for individual taxation'all grou members shall be obliged to ay the difference roortionately on behalf of the tax

rivilege that they used#

2. Trn%er +r$ce%

Article 0?

(1) *ransfer rice shall be considered the rice occurring related to the transactions of assets or generating liabilities bet!een related ersons#

($) elated erson to the taxayer shall be considered that hysical erson or legalentity !hose relationshi !ith the taxayer creates ossibility of control or significantinfluencing of business decisions#

() >!nershi of more than half or individually the largest ortion of shares or stoc&sshall be considered to be enabled control#

(0) 8ignificant influence shall be considered mutual large volume of sales and urchases' technological deendence or in other manner obtained managing control#

(?) elated erson to the taxayer shall be considered that legal entity in !hich' as !ellas in the taxayer' the same hysical erson or legal entity directly or indirectly articiate inmanagement' control or caital in the manner stiulated under the Paragrahs and 0 of thisArticle#

Article 05

(1) *he taxayer shall be obliged to sho! the transactions from the Article 0?'Paragrah 1 of this "a! searately in its tax balance#

($) *he taxayer shall be obliged' +ointly !ith the transactions from the Article 0?'Paragrah 1 of this "a!' to sho! searately in its tax balance the values of the same



transactions er rices that !ould be generated in the mar&et of such or similar transactionshad it not been the case of related ersons (out of reach- rincile)#

Article 06

(1) *he difference bet!een the rice determined by alying the rincile out of reach-and transfer rice shall be included in tax base and it shall be taxed#

($) .hen determining the transaction rice er rincile out of reach- comarativemar&et rices shall be used' and !hen not ossible' method of costing enlarged for the usual

rofits#

Article 07

(1) /n the case of loan ta&en by the taxayer from creditor or !ith the status of related erson from the Article 0?' Paragrah $ of this "a!' the interest and belonging exensesrecognized as exenditures in tax balance shall not exceed those under !hich it is ossible tota&e such loan in the mar&et in the calculation eriod#

($) *he difference bet!een mar&et interest and interest er loan bet!een related ersons shall have status of dividend in the sense of this "a!#

XI ASS'SS'NT AND COLL'CTION OF PROFIT TAX

1. T- A%%e%%men(

1) *ax Assessment PeriodArticle 09

Profit tax shall be assessed uon the end of calendar year or other eriod of taxassessment for rofit tax according to tax base determined in that eriod#

Article ?;

(1) *ax assessment of rofit tax of comany shall be erformed by entering into the *axAdministration records amount of liability the taxayer assessed and in its tax return(declaration) declared#

($) =ntry into the *ax Administration records of the tax liability obtained through thetaxayer audit i#e# through rocessing of its tax return (declaration) and ad+ustment of the datafrom the tax balance shall be considered to be assessment as !ell#

() *he tax assessment shall be considered to be the entry into the records of the *axAdministration of the amount of tax liability determined based on the data from tax return(declaration) the *ax Administration filed on behalf of the taxayer#

(0) *ax assessment shall be voided or amended !hen the head of authorized tax officeor ,ommission for *ax Aeals determine that the assessment can be amended or void or !hen the auditors and other authorized *ax Administration officials order ayment of



additionally assessed tax liability through the decision and based on the records on erformedaudit#

2. T- Re()rn 9Dec!r($"n:

Article ?1

(1) A taxayer shall be obliged to file correctly and accurately filled out tax return(declaration) !ith the tax balance' to the authorized branch office of the *ax Administration nolater than !ithin the eriod of ; days uon the end of the timeframe rescribed for filing of annual calculation of business results#

($) .ith the tax return (declaration) and tax balance' the taxayer shall file an /ncome8tatement and other documents rescribed by this "a!#

() *he tax declaration !ith tax balance shall include data on taxayer-s incomegenerated by its ermanent branch office in the eublic of 8rs&a i#e# Brc&o %istrict' as !ellas the income generated outside of Bosnia and Herzegovina#

(0) *he rofit tax' !hich is the result of total business activities of comany shall becalculated and aid in accordance !ith rovisions of this "a!#

(?) Gon taxayers- re4uest or erformed suervision or based on other data on business activities of the taxayer available to the *ax Administration' the *ax Administrationman assess ne! amount of monthly advanced ayment of rofit tax or other eriod for advanced ayment through the decision#

(5) *he taxayer initiating business activities for the first time shall not be obliged tofile the declaration for advanced ayment of rofit tax for the first year of business activity#

(6) *he inister of Finance of FBiH shall rescribe the form of tax return (declaration)#

3. T- C"!!ec($"n

Article ?$

,ontrol' assessment and tax collection of rofit tax shall be done in the manner and er rocedure rescribed by the "a! on *ax Administration of the Federation of Bosnia andHerzegovina >fficial Eazette of the Federation of BiH- ;$' $7;0)

Article ?

(1) *he taxayer shall ay rofit tax for the rofit of comany throughout the year inmonthly installments declared in tax return (declaration)#

($) Gntil filing annual tax return (declaration) from the Paragrah 1 of this Article' thetaxayer shall be obliged to ay monthly advanced ayments of the rofit tax in the amountcorresonding to monthly advanced ayment from the revious eriod#



() onthly advanced ayment may be changed due to significant changes in ' changesof tax instruments or other circumstances having significant effects onto tax liabilities in themanner from Article ?1' Paragrah ?#

(0) *axayer !ho uses tax holidays from Articles 1' $ and and in case of carried

over losses stated in tax balance shall not be obliged to ay monthly advanced ayments of rofit tax#(?) onthly advanced ayment shall be aid until end of current month for revious

month#

Article ?0

(1) .hen the tax assessed and declared in annual tax declaration by the taxayer exceeds the amount of aid monthly advanced ayments of the rofit tax' the taxayer shall beobliged to ay the o!ing difference of taxes not later than by the end of legally defined duedate for tax declaration filing#

($) .hen the amount of aid monthly advanced ayments exceeds the amount of taxliability' excess taxes aid may be refunded or calculated as advanced ayment of rofit tax for the follo!ing eriod uon the re4uest of the taxayer' rovided there are no outstanding taxliabilities based on other taxes#

Article ??

*o the amount of rofit tax not aid !ithin legally defined eriod' the interest shall be aid as defined by the "a! on Amount of the ate of Penal /nterest onto Public evenues(>fficial Eazette of the Federation of BiH-' 07;1' ?$;1 and 0$;5)#

Article ?5

*he taxayer holds the right to refund of overaid or !rongly aid rofit tax' interestand enforced collection costs in accordance !ith the rovisions of the "a! on *axAdministration#

;. S(()(e " L$m$(($"n

Article ?6

(1) ight to assess and collect the tax' interest and costs of enforced collection andfinancial fines' sentenced in accordance !ith this la!' shall be sub+ect to five year limitation

eriod uon the end of the year !hen the assessment i#e# tax collection' interest' enforcedcollection costs and financial fines !ere due#

($) =xcetion to the Paragrah 1 of this Article' the right to assess and collect the tax'interest and costs of enforced collection and financial fines shall not be sub+ect to limitation!hen finding that the tax liability is assessed based on false tax return (declaration)#



XII B6SIN'SS R'CORDS

Article ?7

(1) For the assessment of tax base valid shall be business records &et in accordance!ith accounting regulations and /A8 and /8F/' !hich are reared based on those regulationsand regulations based on this "a!#

($) *he taxayer determines business results and declares those in the accounting basedon the accounting rincile of actual occurring of the event' i#e# business events are declared inaccounting !hen occurring and are declared in financial reorts for the eriod they ertain to#

XIII A6T4ORIATIONS

Article ?9

(1) Federal inister of Finance shall be authorized to rescribe uleboo& for theimlementation of this "a! !ithin 9;day eriod as follo!s: ethodology of determination of a rofit tax base in *ax BalanceI %ereciation atesI anner of accelerated dereciation and anner and duedates for filing tax returns and *axBalanceI forms for filing and calculation of !ithholding tax' Procedures for ac4uiring the rights on tax holidays etc#

XIV P'NAL PROVISIONS

Article 5;

iolations of the rovisions of this "a!' characterized as violations' shall have theresonsibilities and sanctions for violation rescribed as in the "a! on *ax Administration#

XV INT'RI AND FINAL PROVISIONS

Article 51

>n the day of this "a! becoming effective' the "a! on Profit *ax of ,omanies(>fficial Eazette of the Federation of BiH- $a96 and $9;;) shall seize to exist' excet the

rovisions ertaining to deductions to tax liability from the Art# $6' $7 and $9 that shall bealicable until the end of the eriod they !ere given for#

Article 5$

*his "a! shall be effected next day from the day of gazetting##

3 Law on Corporate Tax of F BiH

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Transcript of 3 Law on Corporate Tax of F BiH