Entities liable to a profit tax are companies, banks, insurance companies and co-operatives registered with the Registrar of companies in the Republic of Srpska. Residents are liable to pay tax on all profits gained within or outside the Republic, whereas non-residents are liable to pay taxes on profits gained within the Republic.
Taxable profit is determined by the results shown by the annual accounts.
Allowable expenditure is generally all outgoings and expenses incurred wholly and exclusively in the production of income. The tax is paid monthly on the basis of assessment of the tax, on account of the final liability. If the assessment falls short the payment of the difference must be made in 8 days. Any refund of tax over-paid has to be effected within 15 days. The interest rate is determined at double the discount rate with the Central bank at the time of due payment.