Republic of Srpska: Amendments on Income Tax Law

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To the joy and satisfaction of many employees, the amendments to the Law on Income Tax of the Republic of Srpska are to increase the personal income of all workers. The minimum wage is now 540.00 KM, and the amount of non-taxable income is changed from 500 KM to 700 KM. 

The Law on Amendments to the Law on Income Tax that was published in the “Official Gazette of the Republika Srpska, No. 49/21″and enters into force on July 1^st, 2021,  increases the basic personal deduction of the personal income tax base from 6,000 to 8,400 KM per year, which amounts to 700 KM per month. 

On top of the above, the amount of the basic personal deduction of the tax base on the basis of dependent members of the immediate family has been increased from 900 to 1,800 KM per year, i.e. the monthly amount of personal deduction on the basis of dependent members of the immediate family will be from 150 KM from 75KM.  

Lastly, the Law on Amendments to the Law on Contributions, effective July 1st, 2021, stipulates that the base of contributions for employed persons cannot be lower than the lowest gross salary in the Republic of Srpska, determined in accordance with the regulations governing work, and which is valid in the month for which the contributions are calculated. 

For further information, please contact Ms. Andrea Tesic Peulic, Accountant and Payroll Assistant in Banja Luka, at banjaluka@eurofast.eu  

Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & the Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & the Middle East. 

3/6/21