This article provides a focused overview of corporate tax for companies in Bosnia and Herzegovina (country code: BA) based solely on the latest available data. It presents the current flat tax rate, assessment basis, and other vital details that international professionals and business owners must know for 2025.
Corporate Tax Regime in Bosnia and Herzegovina
The corporate tax system in Bosnia and Herzegovina is defined by its flat rate structure, applying uniformly across corporate taxpayers. Below is a summary of the regime’s critical features for 2025:
| Tax Feature | Value (BAM) | Value (USD)* |
|---|---|---|
| Tax Rate | 10% | 10% |
| Tax Type | Flat | Flat |
| Assessment Basis | Corporate | Corporate |
| Currency | BAM | $ (USD) |
| Progressive Brackets | Not applicable | Not applicable |
| Surtaxes | None | None |
| Minimum Holding Period | Data not available | Data not available |
| Maximum Holding Period | Data not available | Data not available |
*Conversion rate for exchange: 1 BAM ≈ $0.55 USD (2025)
Flat Tax Rate: What This Means for Companies in 2025
Bosnia and Herzegovina applies a flat 10% corporate income tax rate on companies. This means all qualifying corporate profits are taxed at the same rate, without any tiered brackets or progressive increases as income grows. This straightforward structure simplifies tax planning and compliance for both domestic and international businesses.
Assessment Basis
The corporate tax is assessed on the company level, targeting corporate profits as defined by local law. There are no additional published thresholds, progressive tiers, or special holding period requirements available for 2025.
Additional Charges and Surtaxes
There are no corporate surtaxes applied. In other words, the effective corporate tax rate for qualifying companies remains at a consistent 10% across relevant corporate income. This can be a notable advantage for organizations that value predictability and transparent tax planning.
Specific Notes on Data Availability
Publicly available data for minimum or maximum holding periods that may impact capital gains or dividend treatment is not disclosed by Bosnia and Herzegovina at this time. Similarly, there is no indication of alternate tax brackets or graded rates for special sectors or company types. This typically indicates a uniform regime, although businesses should always review the official Bosnia and Herzegovina tax authority page for regulatory details and updates.
How Bosnia and Herzegovina’s Corporate Tax Compares (2025)
The 10% flat corporate tax rate puts Bosnia and Herzegovina among the countries with moderate corporate tax burdens. The regime is simple, uniform, and free of complex progressive brackets, making it appealing for business owners aiming for tax transparency and ease of compliance.
Key Takeaways for International Professionals
- The only tax applied at the corporate level, per current data, is the flat 10% rate.
- No information has been published for sectoral exceptions or additional local corporate tax surcharges.
- The currency used for tax assessment and payment is the Bosnia and Herzegovina Convertible Mark (BAM). Conversion to USD should be done based on the prevailing rate at the time of tax calculation.
Pro Tips for Managing Corporate Tax in Bosnia and Herzegovina
- Confirm current rates before filing: Consult with the official Bosnia and Herzegovina tax authority or a local advisor for the most up-to-date regulations, as legislative changes may impact your obligations.
- Structure your business for simplicity: The absence of brackets or surtaxes means straightforward reporting, but ensure all corporate structures and subsidiaries comply uniformly with the flat rate.
- Keep financial records in BAM: Since tax payments are required in BAM, maintaining accurate dual-currency records facilitates smoother compliance and audit processes.
- Watch for updates on holding period policies: Although no minimum or maximum holding period is published, monitor regulatory guidance for any future adjustments impacting dividends or capital gains.
- Factor in indirect and local taxes: While the corporate income tax regime is flat and predictable, be aware of other local, municipal, or sectoral taxes that may apply separately.
Official Resources
For authoritative updates and additional guidance, refer to the Bosnia and Herzegovina Tax Authority.
In summary, Bosnia and Herzegovina follows a uniform, flat 10% corporate tax regime for companies in 2025. There are no published progressive brackets or surtaxes, and all recognized companies are assessed on a corporate basis. The tax environment is moderate, relatively transparent, and may be attractive for businesses seeking straightforward compliance. As always, review official channels or consult with a qualified local specialist before any filing or strategic moves, particularly if your corporate structure involves complex cross-border elements or industry-specific considerations.