Encouraging Tax Policy

Tax policies in the Republic of Srpska are among the most stimulating in the region, with low income tax rate, profit tax rate and total contributions rate. Value added tax rate is also very stimulating.

Income tax
A uniform income tax rate of 10% is applied in the Republic of Srpska.

Profit tax
Profit tax in the Republic of Srpska is calculated at 10% rate.

Value added tax
In BiH, that is in the RS, a uniform value added tax rate of 17% is applied.

Contributions rates
Total contributions rate is 33% on gross salary, of which:
• 18,0% goes for pension-disability insurance,
• 12,5% for health insurance,
• 1,5% for child protection and
• 1,0% for insurance from unemployment