Incentives for investments are provided at the republic and local level.
The Law on Incentives in Economy of the Republic of Srpska ("Official Gazette of the Republic of
Srpska", No. 52/19, 78/20) provides incentive funds for the development of economy: incentives for increasing
the salaries of employees in business entities and incentives for direct investments.
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 Republic of Srpska Investment-Development Bank (IRBRS) at the end of 2019 introduced a new line of
credit enabling the companies that plan to introduce new technologies into their production process to
have favorable loans at an interest rate below 3%, with repayment period of 12 years and grace preiod of
Law on Corporate Income Tax of the Republic of Srpska ("Official Gazette of the Republic of Srpska", No.
94/15, 01/17, 58/19) stipulates that companies that invest in equipment and facilities for conducting
registered production activities in the territory of the Republic of Srpska are entitled to the tax base
reduction for the value of the investment made.
The Law on Income Tax, (“Official Gazette of the Republic of Srpska”, No. 60/15, 66/18), foresees
certain advantages, i.e. privileges for the annual income for a qualified investor (Article 42-50).
The Ministry of Agriculture, Forestry and Water Management grants cash incentives for agricultural and
rural development. Each year the Ministry adopts a Rulebook on Requirements and Manner to Obtain Cash
Incentives for Agricultural and Rural Development.
At the local level, there are various forms of incentives concering both local fees and services.