The Federal Ministry of Finance has revised personal income tax rules in the Federation of Bosnia and Herzegovina, enabling employers to make tax-free monthly assistance payments of up to BAM 300 to employees through to 31 January 2027.
The Federation of Bosnia and Herzegovina (FBiH) has amended the Rulebook on the Application of the Law on Personal Income Tax to allow employers to grant employees a monthly, tax-exempt financial assistance payment of up to BAM 300, available until 31 January 2027.
The federal government adopted the amendment on 28 July 2026, and the Federal Ministry of Finance subsequently revised the personal income tax rules to give effect to the payments. The change was published in Official Gazette No. 62/26 on 12 August 2026 and entered into force the following day, 13 August 2026.
The amendment inserts a reference to Official Gazette No. 57/26 into Article 10, paragraph (1), item h) of the Rulebook, which previously cited only No. 10/26. The provision now reads “Nos. 10/26 and 57/26)”. No other substantive changes were made to the underlying Rulebook, which has been amended on multiple occasions since its original publication under Official Gazette Nos. 48/21, 77/21, 20/22, 57/22, 5/23, 85/23, 97/23, 36/24, 57/24, 101/24, 11/25, 22/25, 33/25, 43/25, 60/25, 9/26 and 12/26.
Under the revised rules, the tax-exempt allowance is optional for employers, who may decide whether to make the payment to their employees. The measure gives businesses in the Federation additional flexibility to support staff with untaxed monthly assistance for a defined period running through to the end of January 2027.
The amending Rulebook stipulates that it takes effect the day after its publication in the Official Gazette of the Federation of Bosnia and Herzegovina, confirming 13 August 2026 as its operative date.
