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Establishing a branch office of a foreign legal entity within the territory of Federation of Bosnia and Herzegovina (“FBiH”)

Tax news, February 2017

In this issue: Establishing a branch office of a foreign legal entity within the territory of Federation of Bosnia and Herzegovina (“FBiH”)

Pursuant to the Companies Act (“Official Gazette of FBiH”, no. 81/15), foreign legal entities are enabled to establish branch offices within the territory of FBiH. Although the Companies Act provided such possibility, foreign legal entities were unable to register branch offices within the territory of FBiH in practice, due to technical implications i.e. lack of adequate software at the competent court registry.

However, according to the latest information, the technical issue is resolved and it is now possible to register a branch office of a foreign legal entity within the territory of FBiH, hence enter the branch office into the competent court registry.

In that context, we emphasize the obligation of resident taxpayers in FBiH, as stipulated in the Rulebook on Corporate Income Tax Act (“Official Gazette of FBiH”, no. 88/16”), to notify the Tax Authority of FBiH in written on establishing business relations with non-resident legal entities in case when a non-resident legal entity has a branch office / permanent establishment within the territory of FBiH.

Contact:

In case of any additional questions, please do not hesitate to contact us:

Haris Jašarević, MA
Manager
Tax & Legal Practice
T: +387 (0)33 277 560
M: +387 (0)61 161 102
hjasarevic@deloittece.com

Emir Ibišević
Senior Manager
Tax, Legal & BPS Services
T: +387 (0)33 277 560
M: : +387 61 396 047
eibisevic@deloittece.com

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