The Director of the Cantonal Agency for Investment Promotion and Privatization of Sarajevo Canton, Adnan Jašarević, commented on the reduction of contributions in the Federation of Bosnia and Herzegovina (FBiH).
The reduction of contributions in the Federation of Bosnia and Herzegovina and Sarajevo Canton is attracting significant interest from potential investors and contributing to a better business environment, emphasized Adnan Jašarević, Director of the Cantonal Agency for Investment Promotion and Privatization of Sarajevo Canton.
Adnan Jašarević: Potential investors we are in contact with have shown particular interest in this aspect of the regulatory framework
Jašarević highlighted that there have already been very positive reactions from potential investors following the announcement from the Government of the Federation of BiH.
“Once it comes into effect, this decision will serve as an additional incentive for investment and will represent our comparative advantage compared to other regions that, like us, are also working to attract investors,” Jašarević added.
The Government of the Federation of Bosnia and Herzegovina, at the proposal of the Federal Ministry of Finance, has determined the Draft Law on Amendments to the Law on Contributions, which will be sent to the Parliament of the Federation of BiH for further consideration and adoption under an expedited procedure.
According to Jašarević, the issue of contributions is one of the key topics in discussions with companies considering investments in Sarajevo Canton.
The proposed legal solution reduces the overall contribution rate by 13.25 percent, or by 5.5 index points, from the current 41.5 percent to 36 percent.
“Potential investors we are in contact with have shown particular interest in this aspect of the regulatory framework, and we expect this move will further encourage them. We already offer strong incentives for investors, low taxes, and numerous strategic advantages,” said Jašarević.
It is proposed that the law will enter into force the day after its publication in the Official Gazette of the Federation of BiH and will start being applied on July 1, 2025.
