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-Right to refund part of salary contributions- 

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The National Assembly of the Republic of Srpska adopted the Law on Amendments to the Law on Incentives in the Economy of the Republic of Srpska. After two years, an analysis of the application of the Law on Incentives in the Respublika Srpska economy was carried out, proving how essential interventions are in the law to improve the process of awarding incentives.

Accordingly, the current concept of the initial amount of salary, as a constant, is replaced with the concept of the initial amount of salary, as a variable element in the process of awarding incentives; that is, the initial amount of salary represents the amount of the employee’s salary for the month of December in the calendar year, which precedes the calculation period for which the application for the incentive is submitted.

The amendments to the law stipulate that the business entity realizes incentives individually per worker, in an amount corresponding to the value of 70% of the paid contributions to increase the worker’s salary, and the maximum number of incentives in one accounting period is prescribed at 1,000 KM per worker.

In addition, the procedure for submitting a request for an incentive for a salary increase was simplified, by which the obligation to submit an employment contract was abolished. In relation to the previous provision of the law, according to which the condition for obtaining incentives for direct investments of special importance was the employment of at least 100 workers, this amendment also introduces a minimum amount of investment, as an alternative option for exercising the right to the said incentive.

For additional information or assistance from our local advisors, please contact our Accountant and Payroll specialist, Ms. Andrea Peulic, at our Eurofast office in Banja Luka, Bosnia at banjaluka@eurofast.eu

Eurofast is a regional business advisory organization employing local advisors in over 24 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Audit –Advisory & Corporate. 
Andrea Peulic Eurofast

Andrea Peulic
Accountant & Payroll Assistant
Eurofast Banja Luka
banjaluka@eurofast.eu