Page 13 - Central and Eastern European Transfer Pricing Review

Bosnia and Herzegovina | 13

Do tax authorities have If extensive, is the competent by the FBiH tax authority, KPMG in BiH
requirements or preferences authority effective in obtaining recommends having a local language
regarding databases for double tax relief? translation prepared in advance.
comparables? No experience in FBiH business practice
No. with application of competent authority The Republic of Srpska
proceedings.
What level of interaction do tax (RS)
authorities have with customs When may a taxpayer submit an
authorities? adjustment to competent authority? Basic information
Low to moderate. No formal rules. Tax authority name
Ministarstvo fnansija RS, Porezna
Are management fees deductible? May a taxpayer go to competent uprava RS (RS Ministry of Finance,
Yes, assuming documentary support authority before paying tax? tax authority of the RS).
exists and economic beneft can be No formal rules.
proven. Citation for transfer pricing rules
Advance pricing Article 9 of the RS CPT Law and
Are management fees subject to arrangements Article 37 and Article 38 of the
withholding?
RS CPT Regulation. Arms length
Yes, if provided in the FBiH. What APA options are available, principle applies.
if any?
Are year-end transfer pricing No APAs or advance rulings of any kind. Effective date of transfer pricing
adjustments permitted? rules
Yes. In accordance with the CPT Law Is there a fling fee for APAs? 1 January 2007.
of FBiH, adjustments for transfer prices Not applicable.
should be made in the CPT return at the What is the relationship threshold
end of the tax year. Does the tax authority publish APA for transfer pricing rules to apply
data either in the form of an annual between parties?
Other unique attributes? report or through the disclosure of The defnition of related parties
No. data in public forums? includes physical or legal entities that
Not applicable. directly or indirectly have greater than
Other recent 10 percent of shares in a legal entity.
developments Please provide some information Applies to transactions between
on how successful the APA program residents and non-residents.
Not applicable. is and whether there are any known
diffculties? What is the statute of limitations
Tax treaty/double tax Not applicable. on assessment of transfer pricing
adjustments?
resolution Statute of limitations is 5 years and it
What is the extent of the double tax Language commences from the date when the tax
treaty network? In which language or languages can return was submitted or from the date
Minimal. Treaties are negotiated on the documentation be fled? when the tax liability arose, counting
level of BiH, but are applicable to both Although there is a possibility from the date that comes later (e.g. for
entities. A number of tax treaties signed of maintaining transfer pricing the 2012 year the statute of limitations
by the former Socialist Federal Republic documentation in another language expires at the end of 2018).
of Yugoslavia apply. New treaties are and translating it upon a request issued
being signed by BiH.

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