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Bosnia and Herzegovina Proposed Amendments to Individual Income Tax and Social Security Contributions

18 November 2021

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Proposed Changes

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Bosnia and Herzegovina

The government of the Federation of Bosnia and Herzegovina has reportedly proposed certain individual income tax amendments, including: An increase in the standard individual income tax rate from 10% to 13%; An increase in the basic personal allowance from BAM 3,600 to BAM 9,600 per year; and A 10% individual income tax rate on income from the sale of immovable property, gifts and inheritance, interest on long-term deposits, and income received from investment funds and bonds. The government has also proposed abolishing the employer social security contributions and revising upward the contributions of employees. This includes an increase in the...