Transfer prices

If you do business with related legal entities, in accordance with the Law on Profit Tax of the Federation of Bosnia and Herzegovina, you are required to conduct a transfer pricing study once a year.

Related persons to a taxpayer are considered to be:

a) natural persons – citizens who are related through family relationships: spouses and common-law partners, adopted descendants and descendants of adoptees, parents, adoptive parents, siblings and their descendants, grandparents and their descendants as siblings and parents of a spouse or common-law partner;

b) a legal entity and any natural person who directly or indirectly owns 25% or more of the value or number of shares or voting rights in that legal entity;

c) two or more legal entities if one natural person or a third party directly or indirectly owns 25% or more of the value or number of shares or voting rights in each legal entity.

In addition to the above, a related person is also considered to be a person who is determined to knowingly enter into a business relationship with the taxpayer with the aim of transferring profit. In such cases, the individual transaction is executed under related party circumstances.

If you require a transfer pricing study, please contact our team via our website or by phone, whichever is more convenient for you.

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