The Rulebook on Amendments to the Rulebook on the Application of the Income Tax Law was published in the Official Gazette of the Federation of Bosnia and Herzegovina, No. 97/23 of 15.12.2023.
The aforementioned amendments cover Article 10, paragraph 1, item e). The Rulebook on the Implementation of the Income Tax Law (“Official Gazette of the Federation of Bosnia and Herzegovina”, No. 48/2021, 77/2021, 20/2022, 57/2022, 5/2023, 85/2023), which now reads:
(1) In accordance with Article 5, Item 3) of the Law, benefits and other income, except for wages, that are acquired on the basis of:
a) the Law on the Rights of Demobilized Veterans and Their Family Members (“Official Gazette of the Federation of Bosnia and Herzegovina”, No. 54/19),
b) the Law on Special Rights of Recipients of War Recognitions and Decorations and Their Family Members (“Official Gazette of the Federation of Bosnia and Herzegovina”, No. 70/05, 70/06, 9/10, 90/17),
c) the Law on the Rights of Veterans and Their Family Members (“Official Gazette of the Federation of Bosnia and Herzegovina”, No. 33/04, 56/05,70/07, 9/10 and 90/17) and cantonal laws regulating the rights of veterans and their family members,
d) Law on the Basics of Social Protection, Protection of Civilian Victims of War and Protection of Families with Children (“Official Gazette of the Federation of BiH”, No. 36/99, 54/04, 39/06, 14/09, 45/16 and 40/18) and cantonal laws regulating social protection, protection of civilian victims of war and protection of families with children,
e) Regulation on Payment of Assistance by Employers (“Official Gazette of the Federation of BiH”, No. 96/23).
Therefore, pursuant to the Rulebook on the Implementation of the Income Tax Law, and in accordance with the Regulation on the Payment of Assistance by Employers (“Official Gazette of the Federation of Bosnia and Herzegovina”, No. 96/23), employers may pay assistance to employees in the maximum amount of 2,520.00 KM without the obligation to pay income tax. The said payment may be made in a single payment or in parts up to a total of six tranches.
It has also been amended to delete the sentence that reads: “Illness, or physical injury, is proven, for tax purposes, by the finding, assessment and opinion of the Institute for Medical Expertise of Health Status”, and it now reads:
(17) The serious illness referred to in paragraph (15) point b) of this article includes the following diseases: acute tuberculosis, malignant diseases, endemic nephropathy, surgical intervention on the heart and brain, all types of degenerative diseases of the central nervous system, infarction (heart and brain), disease of the muscular system, paralysis and other serious diseases determined by a general act of the Federal Ministry of Health, as well as serious physical injuries.
The new Regulation enters into force on 16.12.2023.
