Bosnia and Herzegovina

Individual - Taxes on personal income

Last reviewed - 09 September 2020

Bosnia and Herzegovina consists of two entities: Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS), with a third region, the Brčko District (BD), being administered by both.

In the Federation of Bosnia and Herzegovina, personal income tax (PIT) payers are considered to be:

  • Residents, subjecting them to tax on their worldwide income.
  • Non-residents who perform independent business activity through a permanent place of business activities in the territory of the Federation of Bosnia and Herzegovina, subjecting them to tax on income generated from such permanent place of business.
  • Non-residents who perform dependent business activity in the territory of the Federation of Bosnia and Herzegovina, subjecting them to tax on income generated from such dependent business activity.
  • Non-residents who earn income from movable and immovable property, royalties, patents, licences, and capital investments where ownership of the underlying property is in the territory of the Federation of Bosnia and Herzegovina, subjecting them to tax on income earned from such property.

In Republika Srpska, PIT payers are residents, as well as non-residents who earn income in the territory of Republika Srpska.

Personal income tax rates

FBiH PIT rates

The PIT rate in the Federation of Bosnia and Herzegovina is a flat rate of 10%.

RS PIT rates

The PIT rate in Republika Srpska is a flat rate of 10%. Small entrepreneurs are taxed at a 2% rate on their total annual revenue, while foreign-source income is taxed at the prescribed absolute amount.

BD PIT rates

The PIT rate in Brčko District is a flat rate of 10%.