In the most general sense, it can be said that the tax is the instrument that the state collects the funds needed to finance state needs (state apparatus financing, education and training, financing of certain social benefits, financing of certain infrastructure projects, incentives and subsidies). In that sense, it may be said that public property taxes are used in various ways, but always mandatory and indirectly through state institutions.
As already mentioned, citizens by means of paying taxes provide funds to finance certain public goods (eg education, health, police, army, etc.) but do not get the right to receive a certain type of service in the proportion of the paid tax, for the payment of contributions for pension insurance, where the pension is determined by the amount of the paid contribution. Therefore, for taxes, it says that they are funded by certain public goods or general-purpose needs whose use can not be individually determined, either by scale or time, but because of their vital importance for the functioning of the society, it is prescribed as a statutory obligation, usually according to economic power Taxpayers with certain corrections that are socially motivated.
The FBiH tax system is regulated by several legal and subordinate regulations, and most important are:
- The Income Tax Law
- Law on Profit Tax
- The Value Added Tax Law (just in Bosnia and Herzegovina)
- Rulebook on Changes to the Income Tax Law
- Rulebook on the Application of the Law on Profit Tax
- Rulebook on the Application of the Law on Value Added Tax (just in Bosnia and Herzegovina)
- Law on Special Taxes
- Law on Accounting and Auditing