Investment incentives are awarded at the national and local levels.
In order to consolidate data and better information exchange, the Government of the Republic of Srpska has launched activities to create a Unified Register of Incentives, which is in the final stage of development and will be available soon on the portal www.regpodsticaja.vladars.net
Incentives at the Republic level
Institutions at the level of the Republic of Srpska award numerous incentives to the economy, we single out the key
Programm of support to employment in the economy of the Republic of Srpska
The Republic of Srpska Employment Institute is a key organization at the labor market which takes part in preparing, executing and implementing employment projects in line with the Republic of Srpska Employment Strategy and the annual Employment Action Plan for Strategy Implementation. The institute is implementing a project of support to employment in the economy of the Republic of Srpska, based on the Rulebook on requirements, criteria and manner of implementation of active employment policy measures, through public call for this programme which is announced for each year individually and is available on the portal of the Republic of Srpska Employment Bureau. All current public calls of the Institute are available here. Further details about these and other programs of the Institute are available at www.zzzrs.org.
The Law on Incentives in the Economy of the Republic of Srpska (Official Gazette of the Republic of Srpska, No. 52/19, 78/20) provides incentives for economic development, as follows:
Incentives for increasing salaries to employees in economic entities
Companies are entitled to incentive for increasing salaries in the amount of funds corresponding to 70% or 30% of paid contributions to the salary increase, depending on the initial amounts of employees’ salaries.
Incentives for direct investment
Incentives for direct investments aim to provide conditions for achieving greater competitiveness of the economy, in order to ensure sustainable economic growth and employment in the Republic of Srpska. They are intended for the realization of investment projects of economic entities, which, among other things, include the program of procurement of new technologies and modern equipment. They are realized by submitting investment projects. The subjects of direct investment projects, documents for proving the fulfillment of conditions for exercising the right to incentives, criteria for evaluation of applications and other issues of importance for the procedure of granting incentives for direct investments are defined by the Decree on the procedure of granting incentives for direct investments. (Official Gazette of the Republic of Srpska, no 32/21).
The Law on Profit Tax (Official Gazette of the Republic of Srpska, No. 94/15, 1/17, 58/19) stipulates that a
taxpayer who invests in equipment and facilities on the territory of the Republic of Srpska to perform a registered
production activity has the right to reduce the tax base by the value of the investment made.
The Law on Income Tax (Official Gazette of the Republic of Srpska, No. 60/15, 5/16, 66/18, 105/19) contains
for investors. This law abolished the dividend tax, and introduced significant innovations for the taxation of
income from foreign sources in a positive sense. The conditions for obtaining the status of a qualified investor are
defined, on the basis of which the investor acquires tax benefits for annual income (Articles 42-50).
RS Investment and Development Bank: Several credit lines, of which we single out the credit line for the
introduction of new technologies
The new credit line for the procurement of new technologies and equipment is aimed at developing the economy of the
Republic of Srpska and maintaining its competitiveness. The fixed interest rate of this credit line is three percent
to the amount of 30 000 to five million KM, with a repayment period of 12 years and a grace period of 24 months.
More information on all IRBRS credit lines is available on the website https://www.irbrs.org/
Incentives of the Ministry of Agriculture, Forestry and Water Management
Every year, the Ministry of Agriculture, Forestry and Water Management allocates financial incentives for the
development of agriculture and
villages. The Ministry adopts the Rulebook on the conditions and manner of realisation of financial incentives for
the development of agriculture and villages. The Rulebook for 2021 was published in the Official Gazette of the
Republic of Srpska, No. 8/21, 17/21, 33/21).
Within the support of capital investments, the beneficiary of the incentive realizes the right to a financial incentive in accordance with the Rulebook on the conditions and manner of realization of financial incentives for capital investments in agricultural production in 2021. (Official Gazette of the Republic of Srpska, No. 13/21, 17/21)
Guarantee credit lines of the Guarantee Fund of the Republic of Srpska
The Guarantee Fund of the Republic of Srpska issues guarantees in the name of securing a part of the loan that the
bank approves to the users of funds under guarantee lines, in case the users of funds cannot offer adequate loan
security required by the bank. There are several types of guarantee lines, such as for initial business activities,
for companies, for entrepreneurs, for export support, for agriculture, etc., and the Guarantee program of economic
support for mitigating the consequences of the COVID-19 pandemic caused by the SARS virus has been established.
CoV-2. More information on the guarantee lines of the Republic of Srpska Guarantee Fund can be found on the website
Incentives at the local level
Incentives at the local level differ, and information about them can be found at the portal
well as at the official websites of the local government units.