Amendment of the Rulebook on the Application of the Law on Income Tax

Official Gazette of the Federation of Bosnia and Herzegovina, number 5/23, 25 January 2023. years

Based on Article 31, paragraph (1), Article 36, paragraph (2) and Article 48 of the Law on Income Tax (“Official Gazette of the Federation of BiH”, No. 10/08, 9/10, 44/11, 7/ 13 and 65/13), Federal Minister of Finance-Federal Minister of Finance, passes

RULEBOOK

on amendments to the rulebook on the application of the law on income tax

Article 1.

In the Rulebook on the Application of the Law on Income Tax (“Official Gazette of the Federation of Bosnia and Herzegovina”, no. 48/21, 77/21, 20/22 and 57/22) in Article 12, a new paragraph (2) is added after paragraph (1) ) which reads:

“(2) The payer of income in the name of compensation that is regulated by a special regulation, with the exception of the compensation from Article 20, paragraph (1) of this rulebook, for a person undergoing professional training from Article 34 of the Labor Law (“Official Gazette of the Federation of BiH” No. 26 /16, 89/18 and 44/22), is obliged to calculate, suspend and pay advance income tax, and report to the Tax Administration within five days from the day of payment on Form APR-1036.”

The previous paragraph (2) to (5) become par. (3) to (6)

In the previous paragraph (5), which becomes paragraph (6), the words: “(2) and (4)” are replaced by the words: “(2) to (5)”

Article 2.

In Article 14, paragraph (2), after point d), a new point e) is added, which reads:

“e) non-resident taxpayers who are employed by a foreign legal entity, and earn income by performing work on the territory of Bosnia and Herzegovina, i.e. the Federation of Bosnia and Herzegovina,”

The previous point e) becomes point f).

Article 3.

In Article 20, a new paragraph is added after paragraph (9). (10), (11) and (12) which read:

“(10) Fees for accommodation and separate living of persons referred to in Article 2 of the Regulation on Fees belonging to judges of the Supreme Court of the Federation of Bosnia and Herzegovina and prosecutors of the Federal Prosecutor’s Office of the Federation of Bosnia and Herzegovina, which do not have the character of a salary (“Official Gazette of the Federation of BiH”, number 98/ 22) are recognized in the amount of up to 250 KM per month for separate living, in the amount of up to 299 KM per month for accommodation when they do not have official accommodation, or up to 149 KM per month when they have official accommodation.

(11) Fees for the accommodation of persons referred to in Article 4 of the Regulation on benefits that do not have a salary character (“Official Gazette of the Federation of Bosnia and Herzegovina”, no. 63/10, 22/11, 66/11, 51/12 and 99/22) are recognized in the amount of up to 299 KM per month for accommodation when they do not have official accommodation, or up to 149 KM per month when they have official accommodation.

(12) Allowances for separate life received by senior civil servants from Article 4 of the Regulation on allowances that do not have the character of a salary (“Official Gazette of the Federation of Bosnia and Herzegovina”, No. 63/10, 22/11, 66/11, 51/12 and 99 /22) are recognized in the amount of up to 250 KM per month.”

The previous paragraph (10) to (19) become para. (13) to (22)

In the previous paragraph (19), which becomes paragraph (22), the number: “(17)” is replaced by the number “(21)”

Article 4.

In Article 53, paragraph (5) is deleted.

Article 5.

In Article 57, paragraph (4), the number: “(1)” is replaced by the number “(3)”

In paragraph (5), the words “from Article 12, para. (1), (2) and (3). of the Law” are replaced by the words: “from Article 12, para. (1), (2) point. 1), 2) and 3) and paragraph (3) of the Law.”

Article 6.

In Article 82, a new paragraph is added after paragraph (2). (3) and (4) which read:

“(3) Non-resident recipients of income earned by performing work on the territory of Bosnia and Herzegovina, i.e. the Federation of Bosnia and Herzegovina, and paid abroad by foreign legal entities, are obliged to calculate and pay income tax when paying such income in the manner established by this rulebook .

(4) As an exception to paragraph (3) of this article, the calculation, suspension and payment of income tax are carried out by subsidiaries of foreign companies that are assigned a taxpayer identification number starting with 48 in accordance with the regulations governing the assignment of identification numbers, registration and identification and records of taxpayers on the territory of the Federation, in the case when non-resident income recipients perform non-independent activities for that foreign company.”

The previous paragraph (3) becomes paragraph (5).

Article 7.

In Article 83, a new paragraph (5) is added after paragraph (4), which reads:

“(5) Persons from Article 82, paragraph (3) and (4) of this rulebook, for income from non-independent activity, they are required to submit a Monthly Report on paid wages, realized benefits and other taxable income of employees from non-independent activity, paid contributions and advance payment of income tax (Form MIP-1023).”

Article 8.

In ANNEX 2. Instructions for filling out the Monthly Report on paid wages, realized benefits and other taxable income of employees from non-self-employment, paid contributions and advance payment of income tax (Form MIP-1023), after point 2.3. a new point 2.4 is added. which reads:

“2.4. The obligation to submit the MIP-1023 form is also for natural persons – non-residents of the Federation of Bosnia and Herzegovina who are:

– employees of a foreign employer with whom they have an employment relationship, but are sent/sent to work in Bosnia and Herzegovina, i.e. the Federation of Bosnia and Herzegovina, without the foreign employer having a branch office, in which case they are paid a salary abroad, and they pay both foreign related contributions for social insurance (Article 83, paragraph (5) of this rulebook).”

Previous points from 2.4. until 2.9. become new points 2.5. until 2.10.

In the table Part 1 – Data on the employer / payer and taxpayer, in point 1. JIB/JMB of the employer/payer, after the words “For type of payment 19 – Enter the JIB starting with codes 48” the words are added: “in case of existence subsidiaries. In the absence of a branch office, NJIB is entered.”

Article 9

This rulebook enters into force on the eighth day from the day of its publication in the “Official Gazette of the Federation of Bosnia and Herzegovina”.

Number 05-02-2-4431/21-5

January 2023

Sarajevo