Bosnia and Herzegovina
Social security contributions
FBiH social security contributions
Mandatory social security contributions in the Federation of Bosnia and Herzegovina are due by the following rates:
|Type of contribution||Employee’s contributions (%)||Employer’s contributions (%)|
|Contribution for pension and invalid insurance||17.0||6.0|
|Contribution for health insurance||12.5||4.0|
|Contribution for unemployment insurance||1.5||0.5|
The base for calculation of social security contributions is the gross salary.
In the Federation of Bosnia and Herzegovina, the employer pays 0.5% of contribution for protection from natural and other disasters, as well as 0.5% of the water protection charge, calculated on net salary.
RS social security contributions
In Republika Srpska, the following rates of mandatory employee’s social security contributions have to be applied:
|Type of contribution||% of gross salary|
|Contribution for pension and invalid insurance||18.5|
|Contribution for health insurance||12.0|
|Contribution for unemployment insurance||1.0|
|Contribution for child protection||1.5|
In Republika Srpska, mandatory social security contributions are calculated on gross salary and have to be withheld by the employer, as an income payer. There are no employer’s social security contributions in Republika Srpska.
There is additional special contribution due in Republika Srpska for solidarity and repair of damages caused by floods in May 2014. This contribution is due in the amount of 3% of an employee’s net salary, where 50% of the contribution is borne by employee and the remaining 50% of the contribution is borne by employer.
BD social security contributions
Persons who are working in Brčko District can opt to which fund of pension insurance, either the fund of Republika Srpska or fund of the Federation of Bosnia and Herzegovina, they would like to pay pension and invalid insurance contributions.
Health insurance contributions are calculated in the amount of 12% on gross salary.
Value-added tax (VAT)
The standard VAT rate is 17%, and the VAT regime applies equally throughout the country of Bosnia and Herzegovina. There is no reduced VAT rate in Bosnia and Herzegovina.
See the Other taxes section in the Corporate summary for more information.
FBiH property taxes
In the Federation of Bosnia and Herzegovina, the cantonal laws determine the property tax rate according to the value and size of the immovable property.
RS property taxes
In Republika Srpska, a person who obtains ownership rights over immovable property is a taxpayer of property tax. When tax liability occurs, the taxpayer must submit an application for registration in the fiscal registry of immovable property to the tax authorities. The tax rate cannot be lower than 0.05% or higher than 0.5% of the evaluated value of immovable property. Municipalities shall publish property tax rates no later than 31 December of the current year for the following year. Property tax is to be paid in two parts, first by 30 June and second by 31 December of the current year for the previous year, based on the receipt issued by the tax authorities no later than 31 March of the current year.
BD property taxes
BD property taxes are imposed by the BD assembly. The annual tax rate is between 0.05% and 1% of the market value of the property. The rate is adopted by the assembly for every year based on the proposed annual budget.