Tax Incentives in FBiH — Reduce Your Taxes Legally
There are legal ways for your company in FBiH to pay less tax. Discover what incentives exist and how to use them correctly.
The average company in FBiH pays between 15 and 20 percent more tax than the law requires — not because they are evading taxes, but because they don't know which instruments the law offers. Tax optimisation is not synonymous with tax evasion. It is the legal right of every entrepreneur to minimise their tax liability using all the instruments that the FBiH Profit Tax Law provides.
What is Legal Tax Optimisation?
Tax optimisation is the legitimate process of using legal provisions to reduce tax liability in line with the legislator's intent. There is a clear line between optimisation and evasion.
**Tax optimisation IS:** - Maximising recognition of all business expenses - Timing of investments to take advantage of depreciation - Structuring employee benefits in a tax-efficient way - Using all legally available deductions and credits
Key Tax Incentives Available in FBiH
1. Investment in Fixed Assets Companies that invest in new equipment and machinery can accelerate depreciation, reducing their taxable profit in the year of investment.
2. Employment Incentives Employers who hire certain categories of unemployed persons (long-term unemployed, youth) can qualify for partial contribution co-financing from the Employment Bureau.
3. Reinvestment of Profit The FBiH law incentivises companies that reinvest earned profit in their own production, equipment and development.
4. Representation Expenses Business entertainment costs are partly tax-deductible — typically up to 30% of actual costs, with proper documentation.
5. Employee Education and Training Costs of professional training and education for employees are fully tax-deductible when documented.
How ENS d.o.o. Helps with Tax Optimisation
Our tax advisory team reviews your business structure, identifies all available incentives and implements a legal tax optimisation plan. Contact us: +387 61 158 271
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