Signing of Double Taxation Convention between Ireland and Bosnia & Herzegovina
In Sarajevo on 3rd November 2009, Mr Patrick McCabe, Ambassador to Bosnia & Herzegovina on behalf of the Government of Ireland and Mr Fuad Kasumović, Deputy Minister of Finance and Treasury, on behalf of the Government of Bosnia & Herzegovina signed a Double Taxation Convention between Ireland and Bosnia & Herzegovina.
Negotiations for a Convention with Bosnia & Herzegovina took place in Dublin in July 2008.
The Convention is comprehensive in scope and generally follows the OECD Model Convention. It applies to taxes on income and gains imposed by both States.
The main purpose of the Convention is to avoid the taxation in both countries of the same income or gains. This is achieved by allocating exclusive taxing rights to one or other country, or where both countries retain taxing rights, by requiring the country of residence of the taxpayer to grant credit for the tax paid in the other country.
The Convention provides for no withholding taxes on dividends, interest and royalty payments.
Other important Articles in the Convention include the non-discrimination provisions, which protect nationals of each country from discriminatory tax provisions in the other and also the exchange of information provisions, which are necessary to counter tax evasion.
The Convention is expected to have a positive impact on trade and investment between Ireland and Bosnia & Herzegovina. Bosnia & Herzegovina is an emerging economy anxious to promote investment and economic development. The exemptions in withholding taxes and other fiscal benefits conferred in the Convention will significantly assist future Irish Business and investment in Bosnia & Herzegovina.
If, as expected, the provisions for ratifying the Convention are completed by both countries in 2010 it will enter into effect from 2011.
Ireland has currently 46 Double Taxation Treaties in effect with several others in the pipeline.
Text of the Convention (PDF, 136KB)
[Ends: 04/11/2009]