Bosnian Tax Officials Inform the Finance Ministry That Income Tax Is Owed on Profits From Cryptocurrency Trades
Although Bosnia's present statute does not expressly forbid the taxation of digital assets, the country's tax office has discussed the issue with the finance ministry. The latter is in charge of bringing about changes to the tax laws.
The Balkan country has experienced an increase in media coverage of cryptocurrencies, and its capital city will soon get its first bitcoin ATM, according to a report from the FENA news agency. The topic of taxes has also gained attention against this background.
The Tax Administration of the Federation of Bosnia and Herzegovina claims that in accordance with the applicable provisions of the Income Tax Law, natural persons, including independent contractors and private citizens, are required to pay income tax on their capital gains from cryptocurrency transactions.
The authorities specifically cited Article 12, Paragraph 1 of the statute, which governs how self-employed people are taxed. These are typically individuals that engage in a variety of activities as their main or secondary career with the goal of making money, including trade, freelancing, or other independent pursuits.
Tax officials also highlighted Federal Ministry of Finance comments from January and March of last year that expressed the department's stance that bitcoin trading might be seen as an autonomous business with the aim of making money.
The Bosnian tax administration noted that, despite the fact that some regulations are still unclear, the executive branch in Sarajevo is working to find a solution. For instance, in November 2022, the Cabinet of Ministers voted to create a crypto working group under the Ministry of Security.
