Taxation of international executives
Are there special residency considerations for short-term assignments?
Short term assignees must obtain a work permit in BiH. In order for the work permit to be issued short term assignees must be employed by a BiH company. Work permits are issued for the duration of up to one year; hence short-term assignments in BiH are treated equally as long-term assignments.
Are there special payroll considerations for short-term assignments?
What income will be taxed during short-term assignments?
All salary and all benefits-in-kind are considered taxable income (subject to tax residence rules and provisions of double taxation treaties).
Are there any additional considerations that should be considered before initiating a short-term assignment in Bosnia and Herzegovina?
Please consider double taxation treaty provisions.
If the assignment is for less than one year and if the assignment spans two calendar years, then if the assignee will be present in the FBiH for less than 183 days in each calendar year then the assignee will be a tax non-resident in each year under FBiH domestic tax law.