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8.2.2. Withholding Taxes

The WHT rates levied on income received / derived by the non-residents from sources within Bosnia and Herzegovina are as below, which may be further reduced under the applicable tax treaty:

Dividend

Tax is withheld at 5% on dividends paid by FBiH / RS resident entities to non-residents. There is no WHT on dividend in BD.

Interest

Tax is withheld at 10% on interest paid by FBiH / RS / BD resident entities to non-residents.

Royalty Copyright

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Service Management

Tax is withheld at the rate of 10% on service technical fees paid to non-residents.

Service Technical

Tax is withheld at the rate of 10% on service technical fees paid to non-residents.

Other

Any other income earned by non-residents is subject to withholding tax at 10%.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 10.0 %
Dividends 5.0 %
Interest 10.0 %
Royalty Copyright 10.0 %
Royalty Patent 10.0 %
Royalty Trademark 10.0 %
Sales 0.0 %
Service Management 10.0 %
Service Technical 10.0 %

* Rates are current as of 25 September 2022