Managerial contracts for foreigners provide the opportunity to perform managerial functions in Bosnia and Herzegovina without establishing an employment relationship. However, it is important to comply with the provisions of the Law on Employment of Foreigners to ensure the legality of such contracts.
Managerial contracts allow non-residents to serve as directors or board members without an employment relationship, in return for appropriate compensation. These contracts are subject to specific obligations and tax rates to ensure fair application of the law.
In accordance with tax regulations, compensation paid to non-residents under managerial contracts is considered income from other independent activities. This means that the payer is obliged to calculate and pay an advance on income tax, a special fee for protection against natural and other disasters, and a general water fee.
It is important to note that non-residents are not subject to the obligation to pay contributions for basic health insurance or pension and disability insurance on compensation paid under managerial contracts.
If you have questions or concerns about managerial contracts for foreigners, our team of experts is here to provide support and additional information. Contact us to learn more about this important aspect of employing foreign managers.
Through this blog post, we aim to provide useful information about managerial contracts for foreigners and highlight our expertise in offering support in this area.
