- New law on income tax in RS

National Assembly of the Republic of Srpska adopted a new law on income tax, which will apply from 01.09.2015. year.

The iframe of taxation in this law are two additional types of income, and income from foreign sources and other income, which according to its essence and not a new type of income but different treatment and categorization of the existing types of income.

In Article 6, which defines the taxpayer, there are certain differences in the definition of residency.

Another novelty is the introduction of fees for birth of a child as a tax exemption in the amount of one average net monthly salary in the Republic of Srpska, according to the latest published src of the Republic Institute for Statistics, in order to improve the demographic picture of society.

Increased the amount of hot meals, which is not taxable, from BAM 3.5 per day to BAM 4.5 per day, respectively from the previous BAM 77 to BAM 99.

The reduced tax base for the annual amount of premiums for life insurance in the insurance company that owns the license of the Insurance Agency of the Republic of Srpska, up to BAM 1,200 with the intention of encouraging this kind of investment and development in a certain sense, the insurance sector in the Republic of Srpska and development of the Republic of Srpska citizens' awareness of the positive foreign investment in life insurance.

Exempt taxpayers the obligation to pay tax on capital income on dividends and share in profits of legal persons.