Page 13 - CEE Tax Guide 2025

VAT and other indirect taxes Amendments to the VAT rulebook have been
officially introduced as of August 2, 2020. The
Rulebook prescribes the conditions and manner
VAT options in
Bosnia and Herzegovina Applicable / limits in which VAT refunds for VAT paid by non-residents
in BiH can be claimed.
Distance selling No
Both custom duties and excise duties on goods
Call-off stock
imported into BiH constitute types of indirect
VAT group registration No taxation in BiH.
Cash accounting – yearly No
amount in EUR (approx.) Personal income tax /
Import VAT deferment No Social security system
Local reverse charge
In the FBiH, personal income is taxed at a flat rate
Option for taxation
of 10%, and is applicable for active income and
letting of real estate passive income. Dividends are not taxable in the BiH.
supply of used real estate No
In the RS, personal income is taxed at a rate of 8%,
VAT registration approx. EUR 51,129/year assignment fees at a rate of 13%, and all other
threshold
passive income at a rate of 10% (interest, real estate
rental, etc.).
The general rate is 17%. There are no reduced In the RS, employees contribute 31% of the gross
rates apart from the 0% rate. Main VAT-exempt salary. In the FBiH, employer contributions are set
services include banking services, insurance, at 10.5% and employee contributions at 31% of the
healthcare, etc. Export exemption and exemption gross salary.
for deliveries to free zones apply. Specific thresholds
are as follows.

Wage related taxes in Bosnia and Herzegoniva Minimum wage in FBiH Minimum wage in the RS
Exchange rate BAM/EUR 1.95 in EUR in BAM in EUR in BAM
799 1,562 688 1,345
Total wage cost 892 112.00% 688 100.00%
SSC (employer) 93 11.70% - -
Gross salary 799 100.00% 688 100.00%
SSC (employee) 248 31.00% 213 31.00%

PIT 40 5.00% 14 2.00%
Net salary 511 64.00% 461 67.00%

Wage related taxes in Bosnia and Herzegoniva Average wage in FBiH Average wage in the RS
Exchange rate BAM/EUR 1.95 in EUR in BAM in EUR in BAM
1,141 2,231 1,126 2,202
Total wage cost 1,274 112.00% 1,126 100.00%

SSC (employer) 133 11.70% - -
Gross salary 1,141 100.00% 1,126 100.00%
SSC (employee) 354 31.00% 349 31.00%
PIT 63 5.50% 49 4.35%
Net salary 724 63.00% 728 65.00%

Pere Mioč
Partner – Tax Services
Phone: +385 (0) 99 736 8746
E-mail: pere.mioc@forvismazars.com

Central and Eastern European tax guide 2025 Forvis Mazars 13