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Bosnia and Herzegovina/August 2015

In order to control payment of contributions and salary taxes, the Government of Republic of Srpska has announced the possibility of introducing a control system.

The proposed system will function through the commercial banks and will effectively link the net salary payments with the social contribution payments. With the system, the payout of the net salary will not be possible without the payment of social contributions. According to Ministry of Finance, this system has proven to be efficient in the neighboring countries in a way that salary payers are required to electronically submit payroll calculations to the Tax Administration which then performs overall control and creates the electronic payout orders to the banks.

This would ensure the regularity of the salary payments, enabling the interconnection of the entire system as well as the possibility that banks are involved in the control of contributions thus guaranteeing the complete coverage of all employees.

Igor Vujasinovic
Senior Accountant of Eurofast in Bosnia
igor.vujasinovic@eurofast.eu