DoubleTaxationTaxes on salary: Bosnia & Herzegovina preliminary data
How much income tax and social contributions are paid on a salary in Bosnia & Herzegovina, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | BAM 117,352 ≈ €60,000 |
|---|---|
| Income tax | BAM 8,428 ≈ €4,309 |
| Employee contributions | BAM 36,379 ≈ €18,600 |
| Take-home pay | BAM 72,544 ≈ €37,091 |
| Employer's labour cost | BAM 117,352 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 BAM 58,676 | €60,000 BAM 117,352 | €120,000 BAM 234,703 |
|---|---|---|---|
| Company | BAM 5,281 10.0 % | BAM 10,562 10.0 % | BAM 21,123 10.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Bosnia & Herzegovina yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.95586 BAM (Currency-board peg 1 EUR = 1.95583 BAM (Central Bank of Bosnia and Herzegovina) x ECB 2 Jan 2026 (1 EUR = 1.1721 USD), 2026-01-02) ↗
Sources
- Poreska uprava Republike Srpske — Izmjene u podnošenju Obrasca 1002 od 01.01.2026 (worked example: contributions 31%, personal allowance KM 1,000, tax 8%)
- Poreska uprava Republike Srpske — 2026 amendments to the laws on profit tax, income tax and contributions (Sl. glasnik RS 114/25)
- Parlament Federacije BiH — Zakon o izmjenama i dopunama Zakona o doprinosima (adopted 2025, applies from 1 Jul 2025)
- OECD Corporate Tax Statistics / Tax Database — CIT rates 2026 (BIH 10%)
- Poreska uprava Republike Srpske — Pitanja i odgovori: Dohodak (dividends not taxed, art. 31)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.