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Bosnia and Herzegovina: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 29 March 2020

Deferral of corporate income tax liabilities in Republika Srpska

In the Official gazette of Republika Srpska (“RS”), no. 28/20 from 27 March 2020, the Decision on temporary deferral of payment of tax liabilities has been enacted. The temporary deferral of payment of tax liabilities is a measure to lessen the consequences and difficulties that businesses are experiencing due to measures enacted to prevent the spreading of COVID-19 in RS. Taxpayers that are impacted by the measures and which are facing difficulties in settling their due tax liabilities, were given the possibility to submit a written Statement for the temporary deferral of payment of tax liabilities in relation to:

  • Corporate income tax.
  • Fee for improvement of useful functions of forests.
  • Fee for prevention of fires.
  • Personal income tax, as per the annual tax return for 2019.

In accordance with the decision, the above mentioned liabilities which are due by 31 March 2020 are temporarily postponed until 30 June 2020. The above mentioned liabilities shall be payable after 30 June 2020 in installments until the end of the year.

Correction of advance CIT payments

The Corporate Income Tax Law of the Federation of Bosnia and Herzegovina provides for the correction of corporate income tax (CIT) advance payments assessed based on the prior year’s taxable profit and tax liability in circumstances of natural and other disasters. The Government of the Federation of Bosnia and Herzegovina pronounced the state of disaster caused by COVID-19 on 16 March 2020. The request to reduce CIT advance payments for 2020 must be filed with the Tax Administration of Federation of Bosnia and Herzegovina and the Tax Administration should issue its Decision.  

Filing deadline extended in Federation of Bosnia and Herzegovina to 30 April 2020.

On 24 March 2020, the Tax Administration of Federation of Bosnia and Herzegovina announced the extension to, inter alia, the individual income tax return filing deadline and the corporate income tax return filing deadline from the end of March to 30 April 2020. The Tax Administration provided the detailed instructions on the filing mechanism by email and appealed to taxpayers not to visit the Tax Administration unless specifically invited by the Tax Administration.