New Tax Opinions Regulation

The new Federation of Bosnia and Herzegovina (FBiH) Tax Opinions Regulation was published in Official Gazette of the Federation of Bosnia and Herzegovina No. 32/24 on 3 May 2024. The Regulation entered into force on 4 May 2024 and will become effective on 1 June 2024.

The Regulation aligns the local rules with EU directives and governs how the FBiH Tax Administration issues opinions and official interpretations of legislation on taxes, contributions, and fees it administers.

In the Regulation, a ‘tax opinion’ is defined as any advice, information, or instruction given to a taxpayer or a group of taxpayers in connection with their tax situation.

The rules differentiate between prior, general, and specific tax opinions.

Prior tax opinions are regulated in great detail. These are opinions that the Tax Administration issues with regard to a particular taxpayer and that set out the tax consequences of a transaction that is yet to occur, which the taxpayer may follow and reference in its actions and proceedings before the Tax Administration.

Pursuant to the Regulation, a prior opinion:

• Must comply with the positions of the Federal Ministry of Finance or the competent Cantonal Ministry of Finance;
• Is deemed confidential;
• Is binding on all units of the Tax Administration with regard to the taxpayer that sought the prior opinion;
• Pertains to the taxpayer that sought the prior opinion until circumstances or other material information change;
• Is subject to a fixed validity period;
• Is issued following an application that may pertain only to one single particular issue or matter;
• Is subject to a pre-defined set of requirements for application and reasons for denial;
• is issued within 30 days after an application is made, with the consideration period limited to at most 90 days if additional checks or consultations are required; and
• may be re-assessed within 15 days after being delivered.

A specific tax opinion is issued at the application of a taxpayer that concerns a particular issue from the remit of the Tax Administration in connection with the application of federal or cantonal rules. This response is for purposes of information only and is not binding for organizational units of the Tax Administration.

A general tax opinion is issued by the Federal Ministry of Finance following the request of the Tax Administration and is deemed to be the official stance of the Federal Ministry of Finance in the event when current regulations do not stipulate a clear course of action in a particular tax situation.