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Bosnia/December 2013 The Law on special modalities for tax debt servicing (the Law) in Bosnian entity Republic of Srpska entered into force on 14 August 2013. The Law governs special modalities and procedure for tax debt servicing. The main objective is to ease the financial position of companies affected by economic crisis, to maintain current solvency, and stimulate employment. The Law provides for the following special forms for payment of tax debt: a)One-off deferral of payment of tax debt, for a period of up to one year or equal monthly installments for the period of up to 60 months maximum: Deferral of payment of tax debt by one-off deferral of payment for a period of up to one year can be approved to tax debtor whose debt has been established byway of tax declaration or tax decision document, given the following terms have been met: –    Tax debt was due for payment no later than in the year preceding the year in which deferral request is being filed according to the criteria specified in the law; –    Tax debt is secured by various methods prescribed by this law; and –    Obligations have been met relating to retirement and disability insurance of employees who are eligible to enjoy specific rights arising from retirement and disability insurance during the deferral period. b)Conversion of tax debt into shares in ownership in a company: Subject to conditions, all tax debtors established as companies shall be entitled to service their tax debt through conversion of tax debt into share in ownership. The book value will apply to conversion of tax debt into share in ownership using the data from the financial statement of the tax debtor for the last completed business year. The Ministry, on behalf of the government, shall be the creditor for the entire tax debt in the procedure of conversion. c)Payment of the entire amount of principal debt, with interest write-off Servicing of tax debt byway of payment of the principal tax debt with interest write-off shall be available to all tax debtors in case that by 30 June 2014 they will have paid the entire principal tax debt which was due for payment no later than 30 June 2013. In this case, the entire amount of interest calculated to debt shall be written-off. Tax debtors, who fail to service the entire principal debt by above stated deadline, shall not be entitled to interest write-off. Eurofast Global, Banja Luka Office bosnia@eurofast.eu Tel.: +387 51 340 680 www.eurofast.eu