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) provides incentive funds for the development of economy: incentives for increasing
the salaries of employees in business entities and incentives for direct investments.
The Programme for supporting employment in economy offers incentives for investors through paying the
amount of payed taxes and contributions implemented through the Republic of Srpska Employment Bureau.
All employers who have recruited workers in the past year will have the opportunity for the refund of
taxes and contributions. The public call for this programme is announced for each year individually and
is available on the portal of the Republic of Srpska Employment Bureau - www.zzzrs.net.
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.