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Incentives and advantages for investors in RS and FBiH
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Companies registered in Republika Srpska (Teslić) are eligible for various forms of incentives: subsidies to encourage export, monetary incentives for agricultural and rural development, support for investment and employment, etc.

In the case of profit tax, through export, over 30% of the total profits for the current year are exempted from taxation.

Favourable loans are offered by the RS Investment Development Bank intended for companies and entrepreneurs. These are loans for start-up business activities, microbusiness loans in agriculture, agricultural loans, loans for entrepreneurs and enterprises, SME loans and loans for companies.

Through the Project to Support Employment in the Economy of Republika Srpska, grants are available for employment – 2.500,00BAM per new job created.

Advantages for investors in the Federation of BiH (Tešanj and Žepče) include:

  • If a company achieves over 30% of its total revenue through export, it will be exempted from having to pay profit tax for that year.
  • A company operating in FBiH that invests at least 20 million BAM into production in a period of 5 consecutive years is exempted from profit tax for a period of 5 years starting with the first year of investment when at least 4 million BAM must be invested.
  • A company where for more than one year, more than 50% of the employees are persons with disabilities or special needs is exempted from profit tax for the year when more than 50% of the employees were persons with disabilities or special needs.
  • A resident company – business unit founded or with its headquarters or business management outside the Federation, but within Bosnia and Herzegovina is exempt from profit tax for the profits achieved in the Federation.