Bosnia and Herzegovina

Corporate - Significant developments

Last reviewed - 08 February 2024

The newest changes to the corporate income tax (CIT) regulations in the Federation of Bosnia and Herzegovina (FBiH) relate to tax treatment of depreciation expense of the assets with the right to use in accordance with IFRS 16. The changes introduced full tax deductibility of such depreciation expenses calculated under the accounting depreciation rates. In other words, the depreciation expense is tax deductible for the period from commencement of a lease until the end of the useful life of the lease.