Bosnia Income Tax

Bosnia and Herzegovina Income Tax -- Personal/Self-Employed Skill v0.1

Tier 2 (research-verified). Confidence: medium. Figures are sourced from PwC Worldwide Tax Summaries (2025), the FBiH Official Gazette / Orbitax / Unija legislative summaries, WageIndicator, and the Indirect Taxation Authority (UINO). Several figures carry explicit [RESEARCH GAP — reviewer to confirm] markers and MUST be confirmed against the entity-level statutes before filing.

Section 0 -- READ THIS FIRST: There Is No National Income Tax

• No national income tax — Bosnia and Herzegovina does NOT levy a single national personal income tax. Direct taxes (personal income tax and social contributions) are administered at the entity/district level by three separate systems with different rates, allowances, and contribution structures. (PwC Worldwide Tax Summaries, Bosnia and Herzegovina – Individual – Taxes on personal income (2025), https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/taxes-on-personal-income)

Entity/district PIT systems table (PwC Worldwide Tax Summaries, Bosnia and Herzegovina – Individual – Taxes on personal income (2025))

System	Authority	PIT rate	Website
Federation of B&H (FBiH)	Porezna uprava FBiH (Tax Administration of the Federation)	Flat 10%	www.pufbih.ba
Republika Srpska (RS)	Poreska uprava RS (Tax Administration of RS)	Flat 8%	www.poreskaupravars.org
Brčko District (BD)	Brčko District Tax Administration	Flat 10%	—

• VAT is only state-level tax — Indirect tax (VAT / PDV) is the only state-level direct-revenue tax, administered by the Indirect Taxation Authority (Uprava za indirektno oporezivanje / UINO) at 17% (www.uino.gov.ba). (PwC Worldwide Tax Summaries (2025))
• Determine entity before computing — You MUST determine the taxpayer's entity before computing anything. If the entity is unknown, see the Conservative Defaults (Section 1) — default to FBiH and flag for the reviewer. (PwC Worldwide Tax Summaries (2025))

Section 1 -- Quick Reference

Quick reference table

Field	Value
Country	Bosnia and Herzegovina
Tax	Personal Income Tax (porez na dohodak) + mandatory social contributions (doprinosi)
Currency	BAM (convertible mark; pegged to EUR at ~1.95583 BAM = 1 EUR)
Tax year	Calendar year (1 January -- 31 December)
Primary legislation (FBiH)	Zakon o porezu na dohodak FBiH; Zakon o doprinosima FBiH (amended eff. 1 July 2025)
Primary legislation (RS)	Zakon o porezu na dohodak RS; Zakon o doprinosima RS
Primary legislation (BD)	Law on Personal Income Tax of Brčko District
Indirect tax	State Law on VAT, administered by UINO; 17% single rate
Tax authorities	FBiH: Porezna uprava FBiH · RS: Poreska uprava RS · BD: Brčko District Tax Admin · VAT: UINO
Annual PIT return deadline	FBiH & RS: 31 March of following year; BD: 28 February (only where withholding insufficient)
Validated by	Pending — requires sign-off by a B&H tax adviser / certified accountant
Validation date	Pending
Skill version	0.1

Personal Income Tax Rates (2025)

PIT rates table (PwC, Individual – Taxes on personal income (2025))

Jurisdiction	Type	Rate	Base
Federation of B&H (FBiH)	Flat	10%	Taxable personal income (worldwide for residents; FBiH-source for non-residents)
Republika Srpska (RS)	Flat	8%	Taxable personal income
Republika Srpska — small entrepreneurs (paušalci)	Flat lump-sum on revenue	2%	Total annual revenue, if below the qualifying threshold
Brčko District (BD)	Flat	10%	Taxable personal income

• No progressive brackets — All three systems use flat rates (no progressive brackets — there is no "cumulative tax" table to compute). (PwC, Individual – Taxes on personal income (2025))
• RS paušal threshold research gap — [RESEARCH GAP — reviewer to confirm] the qualifying annual-revenue threshold for the RS 2% paušal regime, and whether it is elective or mandatory — not confirmed from an authoritative source. (PwC, Individual – Taxes on personal income (2025))

Personal Allowances (2025)

Personal allowances table (PwC, Individual – Deductions (2025), https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/deductions)

Jurisdiction	Personal allowance	Dependent additions
FBiH	300 BAM/month (3,600 BAM/year)	Spouse +150/mo; 1st child +150/mo; 2nd child +270/mo; 3rd+ child +90/mo each; dependent parent (income ≤300 BAM/mo) +90/mo
RS	6,000 BAM/year (500 BAM/month)	Dependent family members +900 BAM/year each; mortgage interest fully deductible; life insurance and voluntary pension contributions up to 1,200 BAM each
BD	6,000 BAM/year (500 BAM/month)	[RESEARCH GAP — reviewer to confirm] BD dependent allowances not separately captured

Conservative Defaults

Conservative defaults table (PwC (2025); Unija, Amendments to the Law on Contributions in the FBiH (eff. 1 July 2025), https://unija.com/en/amendments-to-the-law-on-contibutions-in-the-fbih/)

Ambiguity	Default
Unknown entity (FBiH / RS / BD)	Default to FBiH (larger by population); apply 10% PIT + FBiH allowances/contributions. FBiH 10% > RS 8%, so this avoids understating tax. Flag for reviewer.
FBiH employer cost, date unknown in 2025	Use period-appropriate rate: ~10.5% social-fund total before 1 July 2025; 5.0% from 1 July 2025
RS individual, paušal status unconfirmed	Default to 8% standard rate, NOT the 2% lump-sum regime
Unknown dependents	Apply personal allowance only (no dependent additions)
Unknown business-use % (vehicle, phone, home)	0% deduction
Unknown expense category	Not deductible
Unknown VAT registration	Assume not registered until turnover confirmed ≥ 100,000 BAM

Section 1A -- Social Contribution Tables (doprinosi)

Arithmetic note: every "total" row below is the exact sum of its component rows. Verify before relying on it.

FBiH Contributions (% of gross salary)

FBiH contributions table (PwC, Individual – Other taxes (2025), https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/other-taxes; employer reduction per Unija/Orbitax (Official Gazette FBiH, 7 May 2025; effective 1 July 2025).)

Contribution	Employee	Employer (from 1 July 2025)
Pension and disability insurance	17.0%	2.5% (reduced from 6.0%)
Health insurance	12.5%	2.0% (reduced from 4.0%)
Unemployment insurance	1.5%	0.5% (unchanged)
TOTAL on gross	31.0%	5.0%

FBiH employer levies on net salary table (PwC, Individual – Other taxes (2025))

Employer levy (base = net salary)	Rate
Protection from natural and other disasters	0.5%
Water protection charge	0.5%

• Component checks — Component check (employee): 17.0 + 12.5 + 1.5 = 31.0% ✓ Component check (employer social funds): 2.5 + 2.0 + 0.5 = 5.0% ✓ (PwC, Individual – Other taxes (2025))
• Pre-1 July 2025 employer rates — Pre-1 July 2025 employer rates (for H1 2025 computations): pension/disability 6.0%, health 4.0%, unemployment 0.5% = ~10.5% (social-fund total cited variously as 10.0% on the three funds, or ~10.5% including the two 0.5% net-salary levies). [RESEARCH GAP — reviewer to confirm] the exact pre-July employer total against the entity Law on Contributions text. (PwC (2025))

RS Contributions (% of gross salary) — employee bears ALL

RS contributions table (PwC, Individual – Other taxes (2025))

Contribution	Employee	Employer
Pension and disability insurance	18.5%	0%
Health insurance	12.0%	0%
Unemployment insurance	0.6%	0%
Child protection	1.7%	0%
TOTAL on gross	32.8%	0%

• Component check RS — Component check: 18.5 + 12.0 + 0.6 + 1.7 = 32.8% ✓ RS has no employer social contributions; the employee carries the full 32.8%. (PwC, Individual – Other taxes (2025))

Brčko District Contributions

BD contributions table (PwC, Individual – Other taxes (2025))

Contribution	Detail
Pension	Employee may elect to contribute to either the RS or FBiH pension fund; rate depends on the chosen fund
Health insurance	12.0% of gross

• BD employer/employee split research gap — [RESEARCH GAP — reviewer to confirm] the exact BD employer/employee split, which follows the chosen entity fund. (PwC, Individual – Other taxes (2025))

Contribution Base Notes (self-employed / entrepreneurs)

• FBiH self-employed contribution base coefficients — FBiH self-employed/entrepreneur contribution bases are set by coefficient multiples of the published average salary (e.g. ~1.1 liberal professions, 0.65 crafts, 0.55 without books, 0.29 sole traders with books). The monthly base BAM amounts are published annually by the Federal Minister of Finance by 31 December. [RESEARCH GAP — reviewer to confirm] the exact 2025 BAM base figures from the official Službene novine — not obtained. No explicit monthly contribution ceiling was confirmed for either entity for 2025; the minimum base is effectively tied to the minimum wage. (PwC (2025) + caveats)

Required Inputs

• Minimum viable — Minimum viable — the taxpayer's entity (FBiH / RS / BD), gross monthly salary or annual income, and number/type of dependents.
• Recommended — Recommended — full-year payslips or bank statement, monthly payroll specifications (MIP-1023 / Obrazac 1002), confirmation of resident vs non-resident status, prior-year annual return, and (for self-employed) the contribution base/coefficient applied.
• Ideal — Ideal — complete income and expenditure records, asset register, deductible items (RS mortgage interest, life-insurance / voluntary-pension up to 1,200 BAM each), VAT registration status (UINO), and confirmation of period for any H1/H2 2025 employer-rate split.
• Refusal if minimum missing — Refusal if minimum is missing — SOFT WARN. No entity = hard stop (the rate, allowances, and contributions differ entirely between systems). Income without supporting documents = proceed with reviewer warning: "This computation was produced from limited data. The reviewer must verify the entity, contribution base, and allowable deductions."

Refusal Catalogue

• R-BA-1 — Entity unknown. "Bosnia and Herzegovina has three separate income-tax systems (FBiH, RS, Brčko District) with different rates (10% / 8% / 10%), allowances, and contributions. This skill cannot compute tax without the taxpayer's entity. Please confirm before proceeding."
• R-BA-2 — RS small-entrepreneur (paušal) regime. "The RS 2% lump-sum regime is threshold-gated and the qualifying revenue limit is unconfirmed. Do not apply 2% without confirming eligibility. Default to 8% standard and escalate to a B&H adviser."
• R-BA-3 — Non-resident / cross-border income. "Non-resident and dual-residence taxation, and inter-entity allocation, have different rules. Out of scope. Escalate to a B&H tax adviser."
• R-BA-4 — Capital gains / property disposals. "Capital gains and property-transfer taxation require specialised entity-level analysis. Escalate to a B&H tax adviser."
• R-BA-5 — Arrears / enforcement. "Client has outstanding tax/contribution arrears or is subject to enforcement. Default interest and entity-specific fines apply. Do not advise. Escalate immediately."
• R-BA-6 — VAT / PDV return requested. "This skill covers personal income tax and payroll contributions only. B&H VAT is a separate state-level tax under UINO. Use a dedicated VAT skill."
• R-BA-7 — Mid-2025 FBiH employer-rate period unknown. "FBiH employer contributions changed on 1 July 2025. For an employer-cost computation, confirm whether the period is before or after that date before applying a rate."

Section 3 -- Transaction Pattern Library

This is the deterministic pre-classifier. When a bank-statement transaction matches a pattern below, apply the treatment directly. Match by case-insensitive substring on the counterparty name or description. If multiple patterns match, use the most specific. If none match, fall through to Tier 1 rules in Section 5. Bosnian/Serbian/Croatian terms (Latin and Cyrillic where relevant) are given alongside English.

3.1 Income Patterns (Credits)

Income patterns table

Pattern	Treatment	Notes
PLATA, PLAĆA, ПЛАТА, SALARY, NETO PLATA	Employment income	Net salary credit; gross-up to recompute PIT + contributions
HONORAR, NAKNADA, FEES, PROFESSIONAL FEES	Other income / self-employment	Service fee — check entity treatment
UPLATA, DOZNAKA, TRANSFER IN, PAYMENT RECEIVED	Business income	If self-employed; match to invoices
STRIPE PAYOUT, PAYPAL, WISE, REVOLUT PAYOUT	Business income	Platform payout — match to underlying invoices
KIRIJA, ZAKUP, RENT RECEIVED	Rental income	Separate income category
KAMATA, КАМАТА, INTEREST	Investment income	Interest income
DIVIDENDA, ДИВИДЕНДА, DIVIDEND	Investment income	Dividend income
POVRAT POREZA, TAX REFUND	EXCLUDE	Prior-year tax refund — not income
POTICAJ, SUBVENCIJA, GRANT	Check nature	Capital grants EXCLUDE; revenue grants = income

3.2 Expense Patterns (Debits) — potentially deductible (self-employed)

Potentially deductible expense patterns table

Pattern	Category	Treatment	Notes
ZAKUP UREDA, NAJAM, OFFICE RENT	Office rent	Deductible	Dedicated business premises
KNJIGOVODSTVO, RAČUNOVODSTVO, ACCOUNTANT	Accountancy fees	Deductible
ADVOKAT, PRAVNE USLUGE, LEGAL	Legal fees	Deductible	Must be business-related
MARKETING, GOOGLE ADS, META ADS, OGLAŠAVANJE	Marketing	Deductible
OBUKA, SEMINAR, KONFERENCIJA, TRAINING	Training/CPD	Deductible	Must relate to current business
BANKARSKA NAKNADA, BANK FEE, PROVIZIJA	Bank charges	Deductible	Business account only
GOOGLE WORKSPACE, MICROSOFT 365, ADOBE, ANTHROPIC, OPENAI	Software subscription	Deductible	Recurring operating expense
DOMAIN, HOSTING, AWS, CLOUD	IT infrastructure	Deductible

3.3 Expense Patterns (Debits) — utilities, may need apportionment

Utilities expense patterns table

Pattern	Category	Tier	Notes
ELEKTROPRIVREDA, STRUJA, ELECTRICITY	Electricity	T2 if home office	100% if dedicated office; proportional if home
VODOVOD, VODA, WATER	Water	T2 if home office
BH TELECOM, M:TEL, HT ERONET, TELEKOM, INTERNET	Telecoms/broadband	T2	Business-use portion only; default 0% if mixed
MOBILNI, MOBILE	Phone	T2	Business-use portion only

3.4 Expense Patterns (Debits) — travel

Travel expense patterns table

Pattern	Category	Treatment	Notes
AVIO, RYANAIR, WIZZ, FLIGHT	Flights	Deductible if business	Must be wholly business purpose
HOTEL, BOOKING.COM, SMJEŠTAJ	Accommodation	Deductible if business
TAXI, BOLT, PREVOZ	Local transport	Deductible if business
GORIVO, BENZIN, FUEL, PETROL	Vehicle fuel	T2 — business % only	Requires mileage log
PARKING	Parking	T2 — business % only

3.5 Expense Patterns (Debits) — NOT deductible

Not deductible expense patterns table

Pattern	Category	Treatment	Notes
RESTORAN, RUČAK, REPREZENTACIJA, ENTERTAINMENT	Entertainment	NOT deductible	Personal/representation
TRGOVINA, MARKET, KONZUM, BINGO, GROCERIES	Personal	NOT deductible	Private living costs
KAZNA, PENAL, FINE	Fines/penalties	NOT deductible	Public policy
POREZ NA DOHODAK, INCOME TAX PAYMENT	Tax payment	NOT deductible	Income tax cannot reduce income
ISPLATA VLASNIKU, DRAWINGS	Drawings	NOT deductible	Not an expense

3.6 Capital Items

Capital items table

Pattern	Category	Notes
LAPTOP, RAČUNAR, COMPUTER, MACBOOK	Computer hardware	Capitalise per entity depreciation rules — [RESEARCH GAP — reviewer to confirm] B&H individual capital-allowance rates not captured
OPREMA, EQUIPMENT, NAMJEŠTAJ, FURNITURE	Equipment/furniture	Capitalise; reviewer confirms rate
VOZILO, AUTO, VEHICLE	Motor vehicle	Capitalise; business % only

3.7 Exclusions (Neither Income nor Expense)

Exclusions table

Pattern	Treatment	Notes
INTERNI TRANSFER, OWN ACCOUNT, IZMEĐU RAČUNA	EXCLUDE	Own-account transfer
KREDIT, OTPLATA KREDITA, LOAN REPAYMENT	EXCLUDE	Loan principal movement
DOPRINOSI, CONTRIBUTIONS, PIO, ZDRAVSTVO	Contribution payment	Withheld payroll item — not a Box 2 business expense
PDV, VAT PAYMENT	EXCLUDE	VAT liability payment to UINO, not an expense

3.8 B&H Banks — Statement Format Reference

Bank format reference table

Bank	Common Patterns	Notes
UniCredit Bank	UPLATA, ISPLATA, NAKNADA, TRANSFER	PDF/CSV; date format DD.MM.YYYY
Raiffeisen Bank BiH	TRANSFER, DD, NAKNADA	PDF/CSV; counterparty in description
Intesa Sanpaolo Banka	PLAĆANJE, UPLATA, PROVIZIJA	PDF
NLB Banka	TRANSFER, TROŠAK	PDF/CSV
Nova banka (RS)	UPLATA, ISPLATA, КАМАТА	PDF; may use Cyrillic
Addiko Bank	PAYMENT, TRANSFER, FEE	CSV available

Section 4 -- Worked Examples

All figures recomputed end-to-end below. BAM throughout.

Example 1 — FBiH minimum-wage employee (sanity check)

Input: Single FBiH employee, gross 1,562 BAM/month (2025 minimum wage gross), no dependents.

Reasoning:

• Employee contributions: 31.0% × 1,562 = 484.22
• Income after contributions: 1,562 − 484.22 = 1,077.78
• Personal allowance: 300
• PIT base: 1,077.78 − 300 = 777.78
• PIT @ 10%: 777.78 × 0.10 = 77.78
• Net pay: 1,077.78 − 77.78 = 1,000.00

Cross-check: This reconciles to the published FBiH 2025 minimum wage of 1,000 BAM net (WageIndicator). ✓ Source: WageIndicator, Minimum Wage FBiH from 01 Jan 2025; PwC (2025).

Example 2 — FBiH single employee, gross 3,000 BAM

Input: Single FBiH employee, gross 3,000 BAM/month, no dependents. Payment date in H2 2025 (employer rates from 1 July 2025).

Reasoning (employee side):

• Employee contributions: 31.0% × 3,000 = 930.00
• After contributions: 3,000 − 930 = 2,070.00
• Personal allowance: 300 → PIT base: 2,070 − 300 = 1,770.00
• PIT @ 10%: 177.00
• Net pay: 2,070 − 177 = 1,893.00

Employer cost (from 1 July 2025):

• Social funds 5.0% × 3,000 = 150.00
• Natural-disaster levy 0.5% × net 1,893 = 9.47
• Water protection 0.5% × net 1,893 = 9.47
• Total employer cost ≈ 3,000 + 150 + 9.47 + 9.47 = 3,168.94

[RESEARCH GAP — reviewer to confirm] the exact base for the two 0.5% levies ("net salary" definition). Source: PwC (2025); Unija (eff. 1 July 2025).

Example 3 — FBiH married employee, 2 children, gross 4,000 BAM

Input: Married FBiH employee, gross 4,000 BAM/month, spouse dependent, 2 children.

Reasoning:

• Employee contributions: 31.0% × 4,000 = 1,240.00
• After contributions: 4,000 − 1,240 = 2,760.00
• Allowances: personal 300 + spouse 150 + 1st child 150 + 2nd child 270 = 870.00
• PIT base: 2,760 − 870 = 1,890.00
• PIT @ 10%: 189.00
• Net pay: 2,760 − 189 = 2,571.00

Source: PwC, Deductions (2025) for the dependent allowance schedule.

Example 4 — RS single employee, gross 2,000 BAM

Input: Single RS employee, gross 2,000 BAM/month. RS has NO employer contributions.

Reasoning:

• Employee contributions: 32.8% × 2,000 = 656.00
• After contributions: 2,000 − 656 = 1,344.00
• Personal allowance: 6,000/year = 500/month → PIT base: 1,344 − 500 = 844.00
• PIT @ 8%: 844 × 0.08 = 67.52
• Net pay: 1,344 − 67.52 = 1,276.48
• Employer cost: 2,000.00 (gross only — RS employer contributions = 0%)

Source: PwC, Other taxes and Deductions (2025).

Example 5 — RS small entrepreneur (2% lump-sum)

Input: RS sole trader confirmed eligible for the paušal regime, total annual revenue 50,000 BAM.

Reasoning:

• Lump-sum PIT @ 2% × 50,000 = 1,000.00 for the year.

WARNING: Apply 2% ONLY if paušal eligibility is confirmed. [RESEARCH GAP — reviewer to confirm] the qualifying revenue threshold and whether the regime is elective. If unconfirmed, default to RS standard 8%. Source: PwC (2025).

Example 6 — Entity unknown (conservative default)

Input: Gross 3,000 BAM/month, entity NOT stated.

Reasoning: Default to FBiH (10%, larger entity, higher of 10% vs RS 8% — avoids understating tax). Compute as Example 2: net pay 1,893.00. Flag: "Entity assumed FBiH under conservative default — reviewer must confirm; RS would yield a different result (8% PIT, 32.8% employee contributions, no employer contributions)."

Source: PwC (2025) per Conservative Defaults (Section 1).

5.1 Determine the Entity First

• Entity determination rule — No computation is valid without the entity. FBiH = 10% PIT + 31.0% employee / 5.0% employer (H2 2025) contributions. RS = 8% PIT + 32.8% employee / 0% employer. BD = 10% PIT + 12% health + elective RS/FBiH pension. (PwC (2025))

5.2 Residence and Source

• Worldwide vs source income — FBiH residents are taxed on worldwide income; non-residents on FBiH-source income. Confirm residence before applying worldwide treatment. (PwC, Taxes on personal income (2025))

5.3 PIT Base = Income − Contributions − Allowances

• PIT base formula — The PIT base is gross income reduced by mandatory employee social contributions and the applicable personal/dependent allowances. Apply the flat entity rate to the resulting base. (See Worked Examples for the order of operations.)

5.4 Personal and Dependent Allowances

Personal and dependent allowances table (PwC, Deductions (2025))

Entity	Personal	Dependents
FBiH	300/mo	Spouse 150; 1st child 150; 2nd child 270; 3rd+ child 90 each; dependent parent (income ≤300/mo) 90
RS	6,000/yr	Family members 900/yr each; mortgage interest (full); life insurance + voluntary pension up to 1,200 each
BD	6,000/yr	[RESEARCH GAP — reviewer to confirm]

5.5 Withholding (PAYE-style)

• Withholding rule — Employers withhold PIT and employee contributions monthly and remit them with salary. FBiH: salary-tax specification due the same day as payment, no later than 1 day after. RS: monthly specification due by the 10th of the following month. (PwC, Tax administration (2025))

5.6 FBiH Employer-Rate Change (1 July 2025)

• FBiH employer rate change — FBiH employer social contributions were cut effective 1 July 2025: pension/disability 6.0% → 2.5%, health 4.0% → 2.0%, unemployment 0.5% unchanged — taking the social-fund total from ~10.0% to 5.0%. The employee 31.0% is unchanged and net pay is unchanged. Always apply the period-appropriate rate. (Unija/Orbitax (Official Gazette FBiH, 7 May 2025))

5.7 RS Has No Employer Contributions

• RS no employer contributions — In RS the employee bears the full 32.8%; there are no employer social contributions. (PwC, Other taxes (2025))

5.8 Wholly-and-Exclusively (self-employed deductions)

• Wholly and exclusively rule — For self-employed/entrepreneur taxpayers, only expenses incurred wholly and exclusively for business are deductible; mixed-use items must be apportioned and documented. Entertainment/representation, personal living costs, fines, and the income tax itself are not deductible. (Apportionment items are Tier 2 — Section 6.)

5.9 VAT (PDV) Interaction

• VAT interaction rule — VAT is state-level (UINO) at 17%, single rate, no reduced rate. Registration threshold is 100,000 BAM annual taxable turnover (raised from 50,000 BAM on 2 Dec 2023); non-resident digital-service (ESS) suppliers register via a VAT representative at the same 100,000 BAM threshold. VAT collected on sales is not income; recoverable input VAT is not an expense. (UINO; vatcalc; Deloitte (2025))

5.10 Annual Returns and Deadlines

Annual returns and deadlines table (PwC, Tax administration (2025))

Entity	Return	Deadline
FBiH	Annual PIT return (GPD-1051 / godišnja prijava poreza na dohodak)	31 March of following year
RS	Annual income tax return (godišnja poreska prijava)	31 March of following year
BD	Annual PIT return (only where withholding insufficient)	28 February of following year

• Form codes research gap — [RESEARCH GAP — reviewer to confirm] exact form codes against the current entity authority forms. (PwC, Tax administration (2025))

5.11 Monthly Payroll Specifications

Monthly payroll specifications table (PwC, Tax administration (2025))

Entity	Form	Deadline
FBiH	Monthly salary tax/contributions specification (Specifikacija MIP-1023)	Same day as salary payment, no later than 1 day after
RS	Monthly salary tax/contributions specification (Obrazac 1002)	By the 10th of the following month

• Form codes research gap — Form codes drawn from common practice — [RESEARCH GAP — reviewer to confirm]. (PwC, Tax administration (2025))

5.12 Corporate Context (incorporation comparison)

• Corporate income tax rate — Corporate income tax is 10% across FBiH, RS, and BD — relevant when a self-employed individual considers incorporation. (PwC, Corporate – Taxes on corporate income (2025))

6.1 Home Office Deduction (self-employed)

• Home office deduction — Apportion rent, electricity, water, internet by dedicated-space percentage; dual-use space does not qualify. Conservative default: 0% until reviewer confirms the arrangement.

6.2 Motor Vehicle Business Use

• Vehicle business use — Only business-use % of fuel, insurance, maintenance, depreciation is deductible; requires a mileage log. Conservative default: 0% business use until log provided.

6.3 Phone / Internet Mixed Use

• Phone/internet mixed use — Business-use portion only; reasonable documented estimate required. Conservative default: 0% until confirmed.

6.4 FBiH H1/H2 2025 Employer-Rate Split

• FBiH H1/H2 split — For an employer-cost computation spanning the 1 July 2025 change, split the year: ~10.0% social funds Jan–Jun, 5.0% Jul–Dec. [RESEARCH GAP — reviewer to confirm] the exact pre-July total.

6.5 RS Paušal (2%) Eligibility

• RS paušal eligibility — Confirm the small-entrepreneur revenue threshold and elective/mandatory status before applying 2%. [RESEARCH GAP — reviewer to confirm].

6.6 Self-Employed Contribution Base (FBiH coefficients)

• FBiH coefficient bases — Bases are coefficient multiples of the published average salary (~1.1 liberal professions, 0.65 crafts, 0.55 without books, 0.29 sole traders with books); the 2025 BAM base amounts are published by the Federal Minister of Finance. [RESEARCH GAP — reviewer to confirm] the 2025 figures from Službene novine.

6.7 RS Deductible Items

• RS deductible items — Mortgage interest (full), life insurance and voluntary pension up to 1,200 BAM each, dependent family member 900/yr — confirm documentation. (PwC, Deductions (2025))

6.8 Capital Allowances (individuals)

• Capital allowances research gap — B&H individual capital-allowance/depreciation rates were not captured. [RESEARCH GAP — reviewer to confirm] entity depreciation rules before capitalising assets.

Section 7 -- Excel Working Paper Template

BOSNIA AND HERZEGOVINA INCOME TAX -- WORKING PAPER
Tax Year: 2025
Entity: FBiH / RS / Brčko District   (MUST be confirmed)
Client: ___________________________
Marital/dependent status: __________
Payment period (FBiH only): H1 (pre-1 Jul) / H2 (from 1 Jul)

A. GROSS INCOME
  A1. Gross monthly salary (BAM)                 ___________
  A2. Other income (rent, interest, dividends)   ___________
  A3. TOTAL gross                                ___________

B. EMPLOYEE SOCIAL CONTRIBUTIONS
  FBiH: 31.0% of gross  |  RS: 32.8% of gross
  B1. Contribution rate applied (%)              ___________
  B2. Employee contributions (A1 × rate)         ___________

C. INCOME AFTER CONTRIBUTIONS (A1 - B2)          ___________

D. ALLOWANCES
  D1. Personal allowance                         ___________
       (FBiH 300/mo · RS & BD 500/mo)
  D2. Dependent allowances                       ___________
  D3. TOTAL allowances                           ___________

E. PIT BASE (C - D3)                             ___________

F. PIT
  F1. Rate (FBiH 10% · RS 8% · BD 10% ·          ___________
       RS paušal 2% on revenue — if confirmed)
  F2. PIT (E × rate)                             ___________

G. NET PAY (C - F2)                              ___________

H. EMPLOYER COST (informational)
  H1. Employer social funds                      ___________
       (FBiH 5.0% from 1 Jul / ~10.0% before · RS 0%)
  H2. FBiH natural-disaster 0.5% of net          ___________
  H3. FBiH water protection 0.5% of net          ___________
  H4. TOTAL employer cost (A1 + H1 + H2 + H3)    ___________

REVIEWER FLAGS:
  [ ] Entity confirmed (FBiH / RS / BD)?
  [ ] Resident vs non-resident confirmed?
  [ ] Dependent allowances confirmed?
  [ ] FBiH employer period (H1/H2 2025) confirmed?
  [ ] RS paušal eligibility confirmed (if 2% used)?
  [ ] Self-employed contribution base/coefficient confirmed?
  [ ] T2 apportionment items flagged?
  [ ] VAT registration status (≥100,000 BAM) confirmed?

B&H Bank Statement Formats

Bank statement formats table

Bank	Format	Key Fields	Notes
UniCredit Bank	PDF, CSV	Datum, Opis, Duguje, Potražuje, Saldo	Date format DD.MM.YYYY
Raiffeisen Bank BiH	PDF, CSV	Datum, Opis, Iznos, Saldo	Counterparty in description
Intesa Sanpaolo Banka	PDF	Datum, Opis, Isplata, Uplata
NLB Banka	PDF, CSV	Datum, Opis, Iznos
Nova banka (RS)	PDF	Датум, Опис, Износ	May use Cyrillic
Addiko Bank	CSV	Date, Description, Amount, Balance	English available

Key B&H Banking / Tax Terms

Key banking/tax terms table

Term	English	Classification Hint
PLATA / PLAĆA / ПЛАТА	Salary	Employment income (gross-up for PIT + contributions)
UPLATA	Credit / inbound payment	Potential income
ISPLATA	Debit / outbound payment	Potential expense
DOPRINOSI / ДОПРИНОСИ	Social contributions	Withheld payroll item (PIO, zdravstvo, nezaposlenost)
PIO	Pension & disability insurance	Contribution
ZDRAVSTVO	Health insurance	Contribution
POREZ NA DOHODAK	Personal income tax	Tax withheld — not deductible
LIČNI ODBITAK	Personal allowance	Reduces PIT base
NAKNADA / PROVIZIJA	Fee / commission	Bank charge (deductible if business)
KAMATA / КАМАТА	Interest	Interest income or bank charge
KIRIJA / ZAKUP	Rent	Rental income or office-rent expense
PDV	VAT	UINO liability — exclude

Section 9 -- Onboarding Fallback

If the client provides records but cannot answer onboarding questions immediately:

1. Classify all transactions using the pattern library (Section 3).
2. Mark all Tier 2 items as "PENDING — reviewer must confirm".
3. Apply conservative defaults (Section 1) — including defaulting to FBiH if entity unknown.
4. Generate the working paper (Section 7) with clear flags.
5. Present the following questions to the client:

ONBOARDING QUESTIONS -- BOSNIA AND HERZEGOVINA INCOME TAX
1. Which entity/district? Federation of B&H (FBiH), Republika Srpska (RS), or Brčko District?
2. Employee or self-employed? If self-employed, which contribution base/coefficient applies?
3. Resident or non-resident of B&H?
4. Marital status and number of dependent children / dependent parent?
5. (RS) Are you registered as a small entrepreneur (paušalac)? What is annual revenue?
6. (FBiH employer cost) Is the period before or after 1 July 2025?
7. Gross monthly salary (BAM)?
8. Any other income (rental, interest, dividends)?
9. (RS) Mortgage interest, life insurance, or voluntary pension contributions paid?
10. VAT (PDV) registered with UINO? Annual taxable turnover ≥ 100,000 BAM?

Key Figures and Their Sources

Key figures and sources table

Item	Value	Source
FBiH PIT rate	10% flat	PwC, Taxes on personal income (2025)
RS PIT rate	8% flat	PwC (2025)
RS paušal rate	2% on revenue (threshold unconfirmed)	PwC (2025) — [RESEARCH GAP] threshold
BD PIT rate	10% flat	PwC (2025)
FBiH personal allowance	300 BAM/mo (3,600/yr)	PwC, Deductions (2025)
RS / BD personal allowance	6,000 BAM/yr	PwC, Deductions (2025)
FBiH employee contributions	31.0% (17.0 + 12.5 + 1.5)	PwC, Other taxes (2025)
FBiH employer contributions (from 1 Jul 2025)	5.0% (2.5 + 2.0 + 0.5) + 0.5% disaster + 0.5% water on net	PwC (2025); Unija/Orbitax (Gazette 7 May 2025)
RS employee contributions	32.8% (18.5 + 12.0 + 0.6 + 1.7)	PwC, Other taxes (2025)
RS employer contributions	0%	PwC (2025)
BD health insurance	12% of gross	PwC (2025)
FBiH minimum wage 2025	1,000 BAM net / 1,562 BAM gross/mo	WageIndicator (eff. 1 Jan 2025)
RS minimum wage 2025 (tiered)	900 net (1,344.26 gross) basic → 1,300 net (2,000 gross) higher-education	WageIndicator (eff. 1 Jan 2025)
VAT (PDV) rate	17% single rate	UINO (official)
VAT registration threshold	100,000 BAM turnover (raised from 50,000 on 2 Dec 2023)	vatcalc; UINO
Corporate income tax	10% (all entities)	PwC, Corporate (2025)
FBiH/RS annual return deadline	31 March	PwC, Tax administration (2025)
BD annual return deadline	28 February	PwC, Tax administration (2025)
Penalties	Entity-level fines + default interest; ranges not captured	PwC (2025) — [RESEARCH GAP] figure-level

Authorities and Legislation

Authorities and legislation table

Topic	Reference
FBiH PIT	Zakon o porezu na dohodak FBiH (Porezna uprava FBiH, www.pufbih.ba)
FBiH contributions	Zakon o doprinosima FBiH (amended eff. 1 July 2025)
RS PIT	Zakon o porezu na dohodak RS (Poreska uprava RS, www.poreskaupravars.org)
RS contributions	Zakon o doprinosima RS
BD PIT	Law on Personal Income Tax of Brčko District
VAT	State Law on VAT — Indirect Taxation Authority (UINO), www.uino.gov.ba

Primary Sources

1. PwC Worldwide Tax Summaries — Bosnia and Herzegovina – Individual – Taxes on personal income — https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/taxes-on-personal-income
2. PwC — Individual – Other taxes — https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/other-taxes
3. PwC — Individual – Deductions — https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/deductions
4. PwC — Individual – Tax administration — https://taxsummaries.pwc.com/bosnia-and-herzegovina/individual/tax-administration
5. PwC — Corporate – Taxes on corporate income — https://taxsummaries.pwc.com/bosnia-and-herzegovina/corporate/taxes-on-corporate-income
6. Orbitax — FBiH Approves Cut in Employer Social Security Contribution Rates — https://orbitax.com/news/archive.php/Federation-of-Bosnia-and-Herze-58893
7. Unija — Amendments to the Law on Contributions in the FBiH (eff. 1 July 2025) — https://unija.com/en/amendments-to-the-law-on-contibutions-in-the-fbih/
8. WageIndicator — Minimum Wage FBiH from 01 Jan 2025
9. WageIndicator — Minimum Wage Republika Srpska from 01 Jan 2025
10. UINO (official) — General information on VAT system in B&H — https://www.uino.gov.ba/portal/en/vat/general-information-on-vat-system-in-bosnia-and-herzegovina/
11. vatcalc — B&H VAT registration threshold increase — https://www.vatcalc.com/bosnia-and-herzegovina/bosnia-and-herzegovina-vat-registration-rise/

Test Suite

Test 1 — FBiH minimum wage reconciliation. Input: FBiH, single, gross 1,562 BAM, no dependents. Expected: contributions 484.22; after-contributions 1,077.78; allowance 300; base 777.78; PIT 77.78; net 1,000.00 (matches published net minimum wage).

Test 2 — FBiH single, gross 3,000. Input: FBiH, single, gross 3,000, H2 2025. Expected: contributions 930.00; after 2,070.00; base 1,770.00; PIT 177.00; net 1,893.00. Employer cost ≈ 3,168.94 (150 social + 9.47 + 9.47 levies).

Test 3 — FBiH married, 2 children, gross 4,000. Input: FBiH, married, spouse + 2 children, gross 4,000. Expected: contributions 1,240.00; after 2,760.00; allowances 870.00 (300+150+150+270); base 1,890.00; PIT 189.00; net 2,571.00.

Test 4 — RS single, gross 2,000. Input: RS, single, gross 2,000. Expected: contributions 656.00; after 1,344.00; allowance 500; base 844.00; PIT @8% 67.52; net 1,276.48. Employer cost 2,000.00 (RS employer = 0%).

Test 5 — RS paušal 2%. Input: RS sole trader, confirmed paušal, revenue 50,000. Expected: PIT 2% × 50,000 = 1,000.00. Only if eligibility confirmed — else default to 8%.

Test 6 — Entity unknown. Input: gross 3,000, entity not stated. Expected: default FBiH → net 1,893.00; flag entity assumption for reviewer (RS would differ: 8% PIT, 32.8% employee, 0% employer).

Test 7 — VAT threshold. Input: sole trader, annual taxable turnover 120,000 BAM. Expected: above 100,000 BAM → VAT registration required with UINO at 17%. (Out of scope for PIT computation — escalate per R-BA-6.)

PROHIBITIONS

• NEVER compute B&H income tax without first confirming the entity (FBiH / RS / Brčko District) — the systems differ entirely.
• NEVER apply the RS 2% paušal rate without confirming eligibility and the revenue threshold.
• NEVER apply post-1-July-2025 FBiH employer rates to an H1 2025 period (or vice versa).
• NEVER add RS employer social contributions — RS has none (employee bears 32.8%).
• NEVER treat B&H as having a single national income tax.
• NEVER allow entertainment/representation, personal living costs, fines, or income tax itself as a deduction.
• NEVER include VAT collected on sales as income, or recoverable input VAT as an expense.
• NEVER present any figure marked [RESEARCH GAP] as confirmed — flag it for the reviewer.
• NEVER present tax calculations as definitive — always label as estimated and require professional sign-off.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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