TAXES AND CUSTOMS
Direct taxes and contributions
Tax policy in the Republic of Srpska is among the most stimulating in the region.
| YEAR OF 2021 | RS | FBIH | SERBIA | CROATIA | MONTENEGRO | NORTH MACEDONIA |
|---|---|---|---|---|---|---|
| PERSONAL INCOME TAX RATE | 10% | 10% | 10% for revenues up to 5.974.848 dinars
15% for revenues higher than 5.974.848 dinars |
20% on tax base up to 360.000 HRK per year 30% on tax base above 360.000 HRK per year |
9% and 11% on the amount of income above the average monthly gross earnings realized in the previous year | 10% on tax base up to 1.080.000 MKD per year
108.000 MKD + 18% on tax base above 1.080.001 MKD per year |
| NON-TAXABLE PART OF INCOME (IN EUROS) | 358 | 153 | 155 | 531 | 0 | 130 |
| DIVIDEND TAX RATE | – | – | 15% | 10% | 9% | 10% |
| CORPORATE INCOME TAX RATE | 10% | 10% | 15% | 10% for revenues up to 7.500.000 HRK
18% for revenues equal or higher than 7.500.000, 01 HRK |
9% | 10% |
| CUMULATIVE CONTRIBUTION RATE TO GROSS SALARY | 32,8% | 41,5% | 36,55% | 36,5% | 32,3% | 28% |
| VAT | 17% | 17% | 20%, 10% | 25%, 13%, 5% | 21%, 7% | 18%, 5% |
Direct taxes are the sole responsibility of the Entities and the Brčko District.
The uniform income tax rate is 10%
Income tax in the Republic of Srpska is calculated at a rate of 10%.
Real estate tax – Each local self-government unit determines the real estate tax rate on its territory and it can amount to a maximum of 0.20%. Exceptionally, the tax rate for real estate in which the production activity is directly performed is up to 0.10%.
The cumulative contribution rate in the Republic of Srpska is 32.8% of gross salary, of which: 18.5% is allocated for pension and disability insurance, 12% for health insurance, 1.7% for child protection and 0.6% for unemployment insurance.
Indirect taxes
The VAT rate of 17% is among the lowest in Europe.
Indirect taxes include value-added tax (VAT), excises (special taxes paid on petroleum products, tobacco and tobacco products, soft drinks, alcohol, alcoholic beverages and natural fruit brandy, beer and wine, coffee), tolls, customs duties.
Customs
Customs regulations are implemented uniformly in BiH. The customs tariff contains a rate range of 0-15%. The Indirect Taxation Authority of BiH is responsible for collecting all customs duties. There are 4 main regional centers for customs clearance of goods in BiH: Customs Office Banja Luka, Customs Office Sarajevo, Customs Office Tuzla, and Customs Office Mostar. Border crossings: Novi Grad, Kostajnica, Kozarska Dubica, Gradiška, Brod, Šamac, Rača, Popovi (Pavlovića most), Karakaj, Klobuk, Deleuša, Vardište, Zupci, Uvac, Ivanica, Bratunac, Donja Gradina. Customs crossings: Novi Grad, Kozarska Dubica, Gradiška, Brod, Rača, Popovi (Pavlovića most), Karakaj, Klobuk, Deleuša, Vardište.
The signing of the Stabilisation and Association Agreement enabled the free export of almost all goods to the EU that meet the standards, and at the same time gradually opened the BiH market for EU goods according to the dynamics agreed in the annexes and protocols that are part of this Agreement.
BiH is also a signatory to the CEFTA Free Trade Agreement with the countries: Albania, Montenegro, Macedonia, Moldova, Serbia and UNMIK / Kosovo. The CEFTA agreement replaces but also supplements the existing free trade agreements with individual countries in the region. This enables greater transparency and rules of the game closer to EU standards, as well as access to a market of around 30 million people. Also, the Free Trade Agreement with Turkey, the Preferential Trade Agreement with Iran, and the Free Trade Agreement with the EFTA countries (Switzerland, Liechtenstein, Norway and Iceland) were signed.
Indirect taxes, as well as customs policy, are the responsibility of the joint institutions of BiH.
