Income tax applies to crypto trading in Bosnia, says tax administration
The taxation of crypto assets is not clearly stipulated by the current legislation of Bosnia, but the matter was re-addressed by the country’s authority yesterday in a communication with the Ministry of Finance. The latter is responsible for introducing amendments to tax rules. The FENA news agency noted in a report that the cryptocurrency has shown an increase in media coverage in the Balkan nation whose capital city is soon to launch its first bitcoin ATM, and the aspect of taxation also comes to the fore. Already happened.
According to this Tax Administration of the Federation of Bosnia and Herzegovina, natural persons – independent entrepreneurs and private citizens will have to pay income tax on their capital gains from cryptocurrency transactions based on the relevant provisions and regulations in the Income Tax Law as suggested .
In particular, the authority referred to section 12 and section 1 of the Act as governing taxation of self-employed persons engaged in a separate activity of their primary or secondary occupation ordinarily for the purpose of generating income. There are people involved in this business and independent events and activities such as independent work and others. The tax authorities also made statements to express the position of the Federal Ministry of Finance in January and March last year when the department indicated that cryptocurrency weddings could be viewed as an independent method aimed at obtaining income. Is. Recognizing that some rules remain unclear, the Bosnian tax administration has highlighted that the executive power in Sarajevo is working towards resolving the issue and that, for example, if we talk about The Cabinet of Ministers decided in November 2022 to set up a crypto working group under the Ministry of Security.
The body has been tasked with assessing the risk of money laundering and terrorism financing using virtual assets and crypto service providers in Bosnia in accordance with a methodology developed by the Council of Europe, and with this report it asks the group to address the current challenges. We expect to submit an action plan to deal with the same.
