Tendencije u razvoju poreza na dobit u sistemu direktnog oporezivanja u Federaciji Bosne i Hercegovine
Tendencies in profit tax evolution within the direct taxation system of Federation of Bosnia and Herzegovina

Summary/Abstract: This paper tests tendencies in profit tax evolution within the direct taxation system of Federation of Bosnia and Herzegovina. By analyzing profit tax, it is possible to identify all weaknesses of financial system, which are the most prominent in the data presentation. We have tested the introduction of the profit tax through following two models: introducing profit tax law at the state level or at the lower level of authority such as entities' level, whereby the first one would be more appropriate in the case of Bosnia and Herzegovina. Possible changes in determining profit tax rates can include the introduction and implementation of a single rate at the state level, which can range from 15% to 20%. Harmonization in legal framework should respect objectives that are in line with improving competitiveness, fairness, neutrality of tax system as well as reaching greater effectiveness of tax collection. New regulations in the area of direct taxation should respect financial, economic, political and social principles, whereby it is irrelevant which one comes first in the practical implementation phase. All these principles are crucial in Bosnia and Herzegovina due to the current, irrational solutions in tax system and the system of public expenditures in Bosnia and Herzegovina.

• Details
• Contents