Bosnia and Herzegovina has updated its withholding tax rules from 1 January 2026, clarifying payor obligations, expanding the scope of taxable services, and introducing a new Form POD-818 to strengthen reporting and compliance requirements.
The Federation of Bosnia and Herzegovina has introduced updated withholding tax legislation, effective 1 January 2026, aimed at clarifying taxpayer obligations and strengthening reporting requirements.
The amendments refine the definition of a payor to explicitly include both individuals and legal entities, and broaden the scope of taxable transactions by classifying payments for the rental of data-storage space and server resources used for website hosting as services subject to withholding tax.
As part of the reforms, the Tax Administration of the Federation of Bosnia and Herzegovina has released a new “Declaration for Withholding Tax on Other Income” (Form POD-818). Designed to capture detailed information on a wide range of income types—such as managerial, technical and telecommunications services, property rentals, and entertainment events—the form sets out structured sections for the payer, the income recipient, and the nature and timing of the income realised.
Form POD-818 also formalises the method for calculating the withholding tax, requiring payors to apply either the rate provided under an applicable tax treaty between Bosnia and Herzegovina and the recipient’s jurisdiction or, in the absence of treaty relief, the standard 10% rate under the Corporate Income Tax Law. The declaration must be supported by relevant documentation and completed with authorised signatures, underscoring its role as a key compliance instrument under the updated withholding tax regime.
