8.1.2. Other Taxes
The following table provides an overview of other taxes that may be imposed on a company doing business in the country.
| Tax Type | Rate(s) | Notes |
|---|---|---|
| Capital Duty | NIL | There is no capital duty in Bosnia and Herzegovina. |
| Payroll Tax (FBiH/RS/BD) | NIL | There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees. |
| Social Security Employer Contribution | Varies based on the gross salary of the employee | The following contributions, calculated based on the gross salary, are to be made by the employer in FBiH: Pension and invalidity insurance: 6%; Health insurance: 4%; Unemployment insurance: 0.5%; Contribution for protection from natural and other disasters: 0.5% of the net salary; Water protection: 0.5% of the net salary. There are no social security contributions to be made by an employer in RS. There are no social security contributions to be made by an employer in BD, except where the employee opts to pay pension and invalidity insurance as per FBiH, i.e., 6%. In response to the COVID-19 pandemic, FBiH has provided subsidized social security contributions (see Sec. 14.3.). |
| Social Security Employee Contribution | Varies based on the gross salary of the employee | The following contributions are to be made by the employee, which are withheld from the salaries by the employer: FBiH Pension and invalid insurance - 17%, Health insurance - 12.5%, Unemployment insurance: 1.5%, RS Pension and invalid insurance - 18.5%, Health insurance - 10.2%, effective 1 January 2022 (previously 12%), Unemployment insurance - 0.6% (previously 1%), Child protection - 1.7% (previously 1.5%). BD Employee may opt to contribute pension and invalid insurance either to FBiH or to RS fund and accordingly, the rate of pension and invalid insurance would be - 17% / 18.5% respectively, Health insurance - 12%, Unemployment insurance - 1.5%. |
| Stamp Duty | NIL | FBiH / RS / BD does not have any stamp duty. |
| Transfer Tax (Tax on transfer of land and real estate) | Varies as per canton | In FBiH, transfer tax is imposed on the acquisition of real estate, levied at the canton level. The tax base is the value of the property at the time of the transaction. Either the seller or the buyer is liable to pay the tax, depending on the law prevalent in the particular canton. However, the tax cannot be higher than 5%. There is no transfer tax in RS and BD. |
| Property Tax (Real estate) | Varies | FBiH Property taxes are imposed at the cantonal level, and the rates, as well as the taxpayers differ as per the cantons. The tax rate ranges between BAM 0.5 to BAM 3 per square meter. RS Property tax is imposed at the entity level annually. The annual tax rate is 0.20% of the market value of the property and is determined by municipalities. BD Property tax is imposed by BD assembly annually. The tax rate ranges from 0.05% to 1% of the market value of the property. The tax rate for the years 2021 and 2022 is set at 0.05%. |
| Custom Duty | Varies | The customs policy law and the rates of customs tariffs to be applied exist and are largely based on European Union standards. In response to the COVID-19 pandemic, Bosnia and Herzegovina provided for exemption from customs duty on the import of vaccines, drugs, medical devices, and other medical countermeasures procured through the Agreement on Joint Public Procurement of Medical Countermeasures, the Vaccine Procurement Agreement with the Global Vaccine Alliance (GAVI) (concluded on 18 September 2020), and other such contracts. Further, an exemption from customs duty is also provided to the public institutions in RS, FBiH, and BD for direct procurement of medical countermeasures against the COVID-19. The exemption is subject to the condition that the BIH competent authorities provide a confirmation that the medicines were procured for non-commercial purposes, i.e., for free and voluntary immunization. |
| Excise Tax | Varies based on products | The single excise tax regime is followed in all districts of Bosnia and Herzegovina and the rate varies as per product. Effective from 1 January 2019, a proportional excise tax is levied at the rate of 42% on the retail price of cigarettes, and specific excise taxes are also levied at the rate of BAM 0.75 per pack of 20 cigarettes. An exemption from excise tax is also provided to the public institutions in RS, FBiH, and BD for direct procurement of medical countermeasures against the COVID-19. The exemption is subject to the condition that the BIH competent authorities provide a confirmation that the medicines were procured for non-commercial purposes, i.e., for free and voluntary immunization. |