Taxes and contributions
Direct taxes and contributions
Tax policy in the Republic of Srpska is among the most stimulating in the region:
|
YEAR OF 2023 |
RS |
FBIH |
SERBIA |
CROATIA |
MONTENEGRO |
NORTH MACEDONIA |
|
PERSONAL INCOME TAX RATE |
8% |
10% |
10% |
20% on revenues up to € 47.780,28 per year 30% on revenues above € 47.780,28 per year |
9% on gross earnings from €700 to €1.000 per month 15% on gross earnings over €1000 per month |
10% |
|
NON-TAXABLE PART OF INCOME (IN EUROS) |
511 |
153 |
185 |
528 |
gross earnings up to €700 are not taxed |
146 |
|
DIVIDEND TAX RATE |
– |
– |
20% |
10% |
15% |
10% |
|
CORPORATE INCOME TAX RATE |
10% |
10% |
15% |
10% for revenues up € 995.421,06 and 18% for revenues equal or higher than 7.500.000, 01 HRK |
9% on profit up to €100.000 9.000 € +12% on profit from €100.000 to €1.500.000 177.000 € +15% on profit over €1.500.000 |
10% |
|
CUMULATIVE CONTRIBUTION RATE TO GROSS SALARY |
31% |
41,5% |
35,05% |
36,5% |
21,5% |
28% |
|
VAT |
17% |
17% |
20%, 10% |
25%, 13%, 5%, 0% |
21%, 7%, 0% |
18%, 10%, 5% |
Direct taxes are the sole responsibility of the Entities and the Brčko District.
The personal income tax rate is 8%, while the self-employment income tax is calculated at the rate of 10%, and the income tax on copyright, rights related to copyright and industrial property rights, capital, capital gains and other income at the rate of 13 %.
The corporate income tax in the Republic of Srpska is calculated at a rate of 10%.
The 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%.
Detailed information on taxes and tax legislation in the Republic of Srpska is available on the website of the Tax Administration of the Republic of Srpska
The cumulative contribution rate in the Republic of Srpska is 31% of gross salary, of which: 18.5% is allocated for pension and disability insurance, 10.2% 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. More information is available on the website of the Indirect Taxation Authority of BiH.
