Potential investors in Zenica-Doboj Canton have a number of incentives and benefits at their disposal, from different levels of government.
In accordance with the Law on Foreign Direct Investment Policy in Bosnia and Herzegovina ("Official Gazette of Bosnia and Herzegovina”, No. 17/98, 13/03, 48/10 and 22/15), foreign investors are guaranteed the following:
- National treatment of foreign investors, ie foreign investors have the same rights and obligations as residents of Bosnia and Herzegovina.
- Foreign investors have the right, for the purpose of their investments, to open accounts with any commercial bank in the territory of Bosnia and Herzegovina in domestic or freely convertible currency.
- Foreign investors will have the right to freely employ foreign nationals from abroad, unless otherwise provided by the laws in Bosnia and Herzegovina on labor and immigration.
- Foreign investors are protected from nationalization, expropriation, requisition and measures with equal effect; such measures may be taken only in the public interest, in accordance with applicable laws and regulations, with the payment of appropriate compensation.
- Foreign investors have the same property rights over real estate as BH. legal entities.
- Foreign investors have the right to transfer abroad, freely and without delay, in a freely convertible currency, the profits resulting from their investment in Bosnia and Herzegovina.
The rights and privileges granted to foreign investors and the obligations arising from the Law on Foreign Direct Investment Policy may not be revoked or annulled with the entry into force of subsequently enacted laws and bylaws. If such subsequently enacted laws and bylaws are more favorable to foreign investors, they have the right to choose the regime that will be applicable to their investment.
Foreign investment will be exempt from customs duties and customs duties, except for passenger cars, slot machines and games of chance.
- Equipment for production that is not produced in Bosnia and Herzegovina, which is imported for new or expansion of existing production, modernization of production, introduction of new or modernization of existing production technology, and which performs direct production activity, is exempt from import duties.
- Production means and other equipment belonging to a company that definitively ceases its activity in another state and is moved to the customs territory of Bosnia and Herzegovina in order to perform a similar activity are exempt from the payment of import duties.
- If the company being moved is an agricultural holding, the animals on it are also exempt from import duties on importation.
In order to use the customs privilege for foreign investments, with a written request for exemption from payment of import duties, the beneficiary of the privilege shall submit to the customs authority competent for the place of residence of the beneficiary of the privilege:
- the contract or other appropriate investment act under which the equipment for which relief from import duties is sought is imported,
- proof of registration of a foreign deposit with the competent state authority,
- specification of equipment according to tariff codes and names from the Customs Tariff of Bosnia and Herzegovina, with indication of the quantity and individual and total value, certified by the beneficiary,
- statement of the investor that the equipment is not older than 10 years,
- a certificate that the imported equipment meets the standards regarding the protection of the human environment and other standards in the field of occupational safety, issued by the institution or other body competent for the field of that activity.
The customs service shall make a decision within 15 days from the day of submitting the request.
LEVEL OF ENTITY
Federation of Bosnia and Herzegovina
According to the provisions of the Federation Bosnia and Herzegovina Law on Profit Tax, foreign investors enjoy the following benefits:
- A taxpayer who invests from his own funds in production equipment in the amount of more than 50 % of the realized profit of the current tax period, the liability of the calculated income tax is reduced by 30 % of the amount in the year of investment.
- A taxpayer who in the period of five consecutive years makes an investment from his own funds in the total amount of 20 million KM, with the fact that in the first year he invests 4 million KM, the liability of calculated income tax is reduced by 50 % in the years of investment.
- The taxpayer is entitled to a tax-deductible expense in the amount of twice the amount of gross salary paid to newly hired employees if he meets the following conditions, as follows:
- the duration of the employment contract must be at least for a period of 12 months full-time and
- the newly hired employee has not been employed by a taxpayer or a related party in the previous five years.
The Government of Zenica-Doboj Canton, through the ministries, proves through various continuous incentive measures that it is committed to improving the business environment and strengthening the competitiveness of companies. In the middle of the last decade, the Government launched programs such as: regression of administrative costs when starting a business and registering a company, regression of interest on investment loans, incentives for construction of new plants and employment, introduction of quality standards, capacity building in tourism and the like.