Are you considering ceasing your tax residency in Bosnia and Herzegovina? Navigating the process can seem daunting, but with the right information, you can smoothly transition to non-residency status. Follow this step-by-step guide to ensure you meet all the legal requirements and properly terminate your tax residency.
Step 1: Determine Eligibility
To cease your tax residency in Bosnia and Herzegovina, you must first ensure that you meet the criteria for non-residency. This generally involves proving that you no longer have a permanent place of residence in the country, do not spend more than 183 days in a calendar year in Bosnia and Herzegovina, and have stronger personal and economic ties to another country.
Step 2: Notify the Tax Authorities
Inform the tax authorities of your intention to cease your tax residency. This involves submitting a formal notification to the local tax office where you are currently registered. The notification should include your personal details, the date of your departure, and evidence supporting your claim of non-residency.
Step 3: Settle Outstanding Tax Obligations
Before you can officially cease your tax residency, you must settle any outstanding tax liabilities. This includes paying any due income taxes, filing final tax returns, and ensuring that no tax debts are pending. Obtain a tax clearance certificate from the tax authorities as proof of settlement.
Step 4: Deregister from the Resident Register
Deregister from the local resident register in Bosnia and Herzegovina. This step is crucial as it officially removes you from the list of residents. Visit the local municipal office where you are registered and provide the necessary documentation to complete the deregistration process.
Step 5: Update Your Address
Update your address with all relevant institutions, including your bank, employer, and any other entities that have your Bosnian address on file. This ensures that all future correspondence is sent to your new address and reduces the risk of any legal complications.
Step 6: Confirm Non-Residency Status
After completing all the above steps, request a confirmation from the tax authorities regarding your non-residency status. This confirmation serves as official recognition that you are no longer considered a tax resident of Bosnia and Herzegovina.
Legal References
- Law on Personal Income Tax of the Federation of Bosnia and Herzegovina
- Law on Personal Income Tax of Republika Srpska
- Law on Personal Income Tax of Brčko District
- Rulebook on the Application of the Law on Personal Income Tax
Useful Links
- Ministry of Finance and Treasury of Bosnia and Herzegovina
- Tax Administration of the Federation of Bosnia and Herzegovina
- Tax Administration of Republika Srpska
