The activities of the RS population in improving business environment and development of entrepreneurship, including starting their own businesses as well as development of agriculture, are accompanied by the support of the Republic of Srpska institutions, through certain forms of fiscal and non-fiscal benefits. Incentives are an extremely important segment of enhancing the competitiveness of the RS economy in foreign markets. They are reflected through the measurable economic benefits provided by the Government, and intended to particular companies or groups of companies, with an aim of directing the investments in preferred sectors or regions.
Subsidies from the RS Employment Service are reflected in various forms of incentives for training, additional training and retraining, and improvement of labor mobility through several projects for which more than 30 million BAM was allocated in 2019 alone. Some of the most significant projects are “Start-up Srpska”, “Together to Employment Program”, “Employment Support Program for the Roma”, employment programs for trainees and interns, and many others.
The financial incentives intended for the development of agriculture and rural areas in the Republic of Srpska are realized through the Agrarian Payments Agency of the Republic of Srpska, and are reflected through the support for current production, capital investments, rural development and other measures. Conditions and procedures for obtaining the financial incentives are regulated by the Rulebook on the conditions and methods of obtaining financial incentives for the development of agriculture and rural areas.
In line with its strategic goals, the IRB RS provides financial support to the RS development projects through various credit lines, such as IRB RS Business Initiative Loans, IRB RS Microbusiness in Agriculture Credits, IRB RS Entrepreneurs and Enterprise Loans, Small and medium-sized enterprises (SMEs) Loans from the European Investment Bank (EIB) funds and IRB RS Agricultural Loans.
Investment incentives are defined as the measurable economic benefits that governments provide to a specific enterprise or groups of companies, with an aim of directing investments in preferred sectors or regions, or influencing the nature of such investments.
These benefits can be fiscal, as in the case of tax exemptions, or non-fiscal, such as grants, loans or impairment of liabilities, with an aim to support business development or to enhance competitiveness.
Incentives can come in two forms – as fiscal incentives, which imply any tax/customs benefit with the intent to influence the investment behavior of companies, targeting specific company, or groups of companies or sectors, and non-fiscal incentives that include any financial or regulatory measure intended to influence the investment behavior of companies, and targeting specific companies, or groups of companies or sectors.
The list of incentives in the Republic of Srpska, divided by the institutions of the RS Government which grant them:
The conditions that individuals and legal entities are obliged to fulfill for exercising the right to financial incentives, including the procedures, required documentation and forms, deadlines, type, amount and a manner of payment of financial incentives, as well as the obligations of beneficiaries after receiving them, are regulated by the Rulebook on the conditions and methods of obtaining financial incentives for the development of agriculture and rural areas.
The financial incentives for agricultural and rural development are provided through the support for current production, support for capital investment, support for rural development and other systematic support measures.
As a part of the support for current production, the incentive beneficiary is entitled to the following types of funds:
1) Direct support for the livestock production:
2) Direct support for the plant production:
As a part of the support to capital investments, the incentive beneficiary is entitled to a financial incentive in accordance with the specific regulations:
As a part of the support for rural development, the incentive beneficiary is entitled to a financial incentive for:
Within the systematic and other support measures, the beneficiary is entitled to a financial incentive for:
Funds from the court judgments and appeals against decisions of the Agency shall be disbursed by the funds referred to in the paragraph 5 of this Article.
Financial incentive for the tourism sector – State aid (low-value grants)
Article 8 (2) of the Law on Real Estate Tax provides that in the case of performing a deficient and craft- production economic activity, the taxpayer may be released from the obligation.
Institutional support, finantial incentives, subventions, tax exemptions - all aim to build better business environment for you.
The Republic of Srpska is rich in natural and other significant resources that represent great potential for each investor. No matter the industry.
Position is important. Good connection with the rest of Europe makes it much easier to build a business in the Republic of Srpska.
Investors in the Republic of Srpska have an equal position as the residents. Aside from that, they have many more valuable benefits.
Tourism is a growing industry. The Republic of Srpska is an attractive location for tourists and yearly-growing numbers confirm this statement.
The workforce is a significant factor of success and one of the biggest advantages of growing a business in the Republic of Srpska.