TAX SYSTEM IN BOSNIA AND HERZEGOVINA/THE REPUBLIC OF SRPSKA
There are two basic types of taxes in Bosnia and Herzegovina: Indirect taxes and Direct taxes.
Indirect taxes are those taxes that are paid when spending revenue and income. Unlike direct taxes, they tax the turnover or consumption of goods, so they do not tax the direct source from which they are paid.
Direct taxes directly tax the income, earnings, or property from which they are paid, hence the source itself.
• Personal Income tax
• Corporate tax
• Real estate tax
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Personal Income tax in Europe, as of January 2022
The non-taxable portion of Income in the Republic of Srpska is 500,00 EUR.
Corporate tax in Europe, as of January 2022
Corporate income tax in the Republika Srpska is calculated at the rate of 10%.
Real estate tax
Republic of Srpska – 0,10 % on real estate where production activity is perfomed. The tax base for the calculation of real estate tax is the estimated market value.
• Value-added tax
• Excise taxes
VAT Rates in Europe, as of January 2022
* A reduced VAT rate exists in some countries for certain products.
1. Special republic tax – the existence of a company or the performance of a certain activity is taxed.
2. Communal taxes – the use of public goods managed by the state is taxed.
Excise taxes are a special form of sales tax which, unlike VAT, taxes sales of a small number of specific products.
The subject of excise taxation is turnover:
a. Petroleum products;
b. Tobacco products;
c. Non-alcoholic beverages;
d. Alcohol and alcoholic beverages;
e. Beers and wines;
Customs duty is the basic import duty levied on goods imported into the customs territory of Bosnia and Herzegovina.
АPPLICABLE TRADE AGREEMENTS
The Stabilisation and Association Agreement (SAA), which entered into force on 1 June 2015, has granted free exports of almost all goods on the EU markets that meet standards, while at the same time the BiH market is gradually being opened for EU goods according to the dynamics agreed on by the annexes and protocols belonging to this part of this Agreement. The SAA has granted zero customs rate for industrial and agricultural products from BiH to the European Union except for: young beef, sugar, fish and fishery products.
The European Free Trade Association (EFTA) is an association that unites the markets of Switzerland, Norway, Iceland and Liechtenstein in the field of trade, established to provide a framework for liberalising trade in goods among its members. The free trade agreement between Bosnia and Herzegovina and the European Free Trade Association of EFTA came into force on 1 January 2015 and it abolishes all customs duties on industrial and processed agricultural products and fish originally from BiH.
Agreement on Amendment of and Accession to the Central European Free Trade Agreement (CEFTA 2006) was signed on 19 December 2006 in Bucharest.
With the signing of CEFTA 2006, the Parties expressed their commitment to improving the trade and investment policies of Southeast European countries. It establishes a Free Trade Area in accordance with the provisions of this Agreement and the World Trade Organization rules and procedures.