Tax and Financial Law Attorney in Bosnia and Herzegovina
Prnjavorac Law Office specializes in providing legal support in the field of tax and financial law. Our team of lawyers helps companies and individuals throughout Bosnia and Herzegovina navigate the complex tax system, take advantage of legal benefits, and protect their rights before tax and financial institutions. The Bosnia and Herzegovina tax system is characterized by a single VAT rate of 17% and a corporate income tax rate of 10%, making it one of the least burdensome in the region at the moment. However, harmonizing business with numerous regulations at the state and entity levels requires careful planning and professional legal advice. Below, we present how Attorney Prnjavorac as a tax and financial law attorney-at-law can help your business throughout Bosnia and Herzegovina.
Tax Law Attorney
As experienced tax lawyers, we provide comprehensive support that includes tax consulting and planning, representation during tax audits, international taxation, drafting objections and appeals, and optimization of tax liabilities. Key services of our office in the field of tax law include:
Tax Advisory and Optimization
Proactive tax planning is essential for the successful operation of any company. Our experts advise clients on how to fully comply with tax regulations, while at the same time taking advantage of all available benefits and exemptions. We provide guidance on the optimal business structure, the method of recording income and expenses, and the proper application of tax regulations so that the tax burden is legally minimized. The tax optimization we offer involves finding legal solutions to reduce the tax base – from the use of investment incentives to tax credits – thereby saving your company money and avoiding the risk of overpaying taxes. For example, tax regulations provide for a five-year exemption from corporate income tax for companies that invest over 20 million KM (BAM) in business development. Our team of lawyers will ensure that clients exercise their right to such benefits provided by law and make the most of all tax reliefs available to them.
International Taxation
Whether you are doing business with foreign partners or are part of an international group, we also provide professional assistance in the area of international taxation. We help companies implement double taxation agreements that Bosnia and Herzegovina has signed with many countries, in order to prevent double payment of taxes on the same income. We also advise on tax residency, transfer pricing and fulfilling obligations under foreign tax systems. A special aspect of international taxation is the correct application of VAT regulations for cross-border services and transactions. The standard VAT rate in Bosnia and Herzegovina is 17%, while the 0% rate is provided exclusively for the export of goods and certain services. This means that services that a Bosnian company provides to a foreign client, which are actually performed outside B&H, are not subject to VAT. Our office protects clients precisely in situations where the Indirect Taxation Authority of Bosnia and Herzegovina (ITA Bosnia and Herzegovina) incorrectly determines the obligation to pay VAT on such transactions. We react quickly – referring to relevant legal provisions (e.g. Article 15 of the VAT Law) and case law – to prove that the transaction is not taxable in B&H and thus exercise the client's right to VAT exemption in these cases.
Protection During Tax Inspections
Facing a tax inspection can be stressful for any company. Our tax lawyer provides complete legal support during tax audits – from preparing documentation and advising management, to attending inspections and responding on-site. Experience shows that during most inspections, tax inspectors find certain irregularities, but many can be clarified immediately with adequate explanations and documentation. That is why it is important to have a professional lawyer with excellent knowledge of the procedure and regulations. We ensure that the competent authorities respect your company's rights and prevent unjustified additional tax obligations or penalties during inspections. In practice, this means that we actively communicate with tax inspectors, provide the requested evidence and point out the relevant regulations as soon as we notice a misunderstanding, thus protecting your interests. If the inspectors do identify certain obligations, we immediately advise on the best next steps to minimize the consequences for your business.
Objections and Appeals Against Tax Rulings
In situations where the Tax Administration or the ITA B&H issues a decision retroactively determining a client's tax liability or imposes a penalty that you disagree with, we take over the entire legal protection procedure. We prepare detailed and well-argued objections to decisions made in the summary procedure, then appeals in the regular administrative procedure, as well as lawsuits before the competent courts (administrative dispute) if necessary. Through a thorough analysis of the facts and application of relevant regulations, we strive to achieve the cancellation or amendment of the disputed decision in favor of the client. Our team of lawyers has experience in successfully challenging tax claims, relying on the rich case law in Bosnia and Herzegovina in the field of taxes. We take every step in the procedure in a timely manner, carefully respecting the deadlines prescribed by law, so that our clients' rights are maximally protected. With our help, clients often manage to significantly reduce the amount of additionally determined liabilities or completely annul illegal decisions of tax authorities.
Our team has proven experience successfully challenging tax assessments, relying as needed on extensive BiH case law in tax matters. Every step is taken on time, with strict observance of statutory deadlines, to maximize protection of our clients’ rights. With our assistance, clients frequently reduce the amount of additionally assessed obligations significantly or fully overturn unlawful decisions of the tax authorities.
Financial Law Attorney
In addition to tax law, Prnjavorac Law Office has extensive experience in the field of financial (banking) law. Our lawyers provide legal services to leading domestic and foreign financial institutions, as well as companies, in various financial transactions and disputes. We represent clients before banks and regulatory agencies, and advise on complex financial contracts and regulations. Key services in the field of financial law include:
- Security Instruments: We advise on the selection of the best security instruments (mortgages, pledges, bank guarantees, bills of exchange, etc.) to protect the client's interests in financial contracts. We explain the advantages and risks of each security instrument, and prepare the necessary documentation (e.g. mortgage or pledge agreements) in accordance with applicable regulations.
- Debt Collection: On behalf of large international banks and funds, we conduct collection procedures for unpaid loans and other receivables from debtors in the territory of Bosnia and Herzegovina. We combine detailed knowledge of domestic law with foreign regulations when necessary – for example, in cases where a loan agreement is concluded under foreign law, we can apply the relevant provisions of that law in proceedings before domestic courts. By efficiently implementing enforcement procedures, we help clients to realize their financial claims in the shortest possible time.
- Disputes and Regulatory Compliance. We represent clients in disputes against banks or other financial institutions, particularly in cases of violations of banking and financial regulations. We also provide advice on compliance with financial regulations in Bosnia and Herzegovina – including the Banking Law, the Financial Business Law, the Law on the Prevention of Money Laundering and Financing of Terrorism, and other relevant regulations. Our mission is to ensure that clients operate in compliance with the law, while minimizing legal risks in the financial sector.
With a specialized team and deep experience in both tax and financial law, the Prnjavorac Law Office is ready to provide comprehensive legal support to your company/business operations or to you as an individual/physical person. Whether you need tax planning and optimization advice or legal assistance in a complex financial transaction, we are at your disposal. As your tax and financial law lawyer in Bosnia and Herzegovina, our aim is to protect your interests, ensure legal compliance at every step, and contribute to your company’s long-term security and success.
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