Income tax in Republika Srpska: farmers and tourist accommodation

Republika Srpska's Law on Income Tax sets out several regimes that matter to rural households: the small farmer tax, the small entrepreneur tax, tax on independent activity, and tax on rental income. Tourist accommodation run as a hospitality business is taxed as independent activity (10%) or as a small entrepreneur (2%); the 13% rate applies to leases. This text describes the position on 6 October 2026, including the amendments that apply from 1 January 2026.

In short

• A small farmer pays a fixed annual amount: up to 12,000 KM income 0 KM, over 12,000 up to 25,000 KM 200 KM, over 25,000 up to 50,000 KM 400 KM.
• To get this regime you must file a statement on last year's income by 28 February; otherwise tax is calculated under the general rules for independent activity (10% rate).
• A small entrepreneur (up to 100,000 KM annual revenue, at most three employees, not registered in the VAT system) pays 2% of total revenue, at least 1,200 KM a year, or 600 KM if revenue does not exceed 50,000 KM.
• Leases (renting out land, a house or a flat): the tax base is the rent minus a 20% standard cost allowance, taxed at 13%.
• The amendments published in Službeni glasnik RS no. 114/25 did not change these rules. They introduced a 9 KM per day tax for seasonal workers, but it cannot be applied yet (see point 4 under What to do).

Who it applies to

• Holders of agricultural holdings in Republika Srpska. A small farmer is a person registered for the whole year only in the Register of Agricultural Holdings (Registar poljoprivrednih gazdinstava) whose total annual income from that activity does not exceed 50,000 KM. Someone who also holds another registered activity (for example an entrepreneur registered for accommodation) does not meet this condition as the law is worded, so check with the Tax Administration before choosing a regime.
• Individuals who rent out rooms, houses or apartments to tourists. The law treats activity carried out on the market to earn profit as independent activity, and tourist accommodation is normally registered under the Law on Hospitality. The lease regime (13%) therefore mainly fits long-term renting, not tourist accommodation. Which regime applies to you depends on how you are registered, so confirm with the Tax Administration.
• Small entrepreneur: the conditions must be met throughout the whole tax year. If they are missed in any part of the year, the status is revoked and cannot be requested again for three years (art. 26). Income of related persons (spouse, children, parents, siblings living in the same household) carrying out the same activity is added together (art. 21).

What to do

1. Farmers: by 28 February each year, file with the Tax Administration (Poreska uprava) the statement on meeting the conditions and on last year's income, on the prescribed form. The Tax Administration issues a decision by 30 April, and the tax is paid by 30 June.
2. Leases: keep records of the agreed price and income. Tax on rental income is paid on the basis of a tax return: file the annual return with the Tax Administration by 31 March of the current year for the previous year (arts. 59 and 60). If the rent is paid by a company or an entrepreneur, they calculate and pay the tax by withholding (art. 61); an individual paying another individual is not a withholding payer. If the agreed price is below market or there is no contract, the Tax Administration may assess the market price. Rent received in advance for several years can, on request, be spread over up to five years.
3. Small entrepreneur: notify the Tax Administration with proof of the conditions by 31 January of the year the status applies to. The return and tax are due monthly, by the 10th for the previous month. Someone who starts during the year files a request within 30 days of starting.
4. Seasonal workers: the 114/25 amendments added art. 52a, under which income tax is 9 KM for each day of engagement. The engaging person would pay it by the 20th of the following month, together with contributions of 16 KM per day. This regime applies only to engagement under a separate law on seasonal and other temporary work. Up to 6 October 2026 (Službeni glasnik RS no. 94/26) that law has not been published, and neither has the Finance Minister's rulebook that art. 71a required within 90 days of 1 January 2026. The 9 KM and 16 KM daily amounts therefore cannot be applied for now, and seasonal workers are engaged under the Labour Law (Zakon o radu). Check the current position with the Tax Administration before engaging anyone.
5. From 1 January 2026, taxpayers who file tax returns must also report income that is exempt from income tax. The Minister prescribes the form.

Deadlines and amounts

• Small farmer statement: by 28 February. Decision: by 30 April. Payment: by 30 June.
• Annual return for rental income: by 31 March for the previous year.
• Rates: personal earnings 8%, independent activity 10%, capital income (including leases) 13%.
• Small entrepreneur: 2%, minimum 1,200 KM (600 KM up to 50,000 KM revenue); notice by 31 January.
• Income tax on leased real estate is paid to the place where the property is located.

Where to go

• Poreska uprava Republike Srpske (Tax Administration of Republika Srpska): the branch competent for the municipality of your holding or property. Forms and regulations are on its website.
• The duty to enter accommodation in the Central Information System in hospitality is set by the Law on Hospitality (Zakon o ugostiteljstvu). The market inspection of the Inspektorat Republike Srpske announced stricter controls in April 2026, and for a hospitality entrepreneur who does not enter data the Law on Hospitality (Službeni glasnik RS nos. 45/17 and 1/24, art. 45) sets a fine of 1,000 to 4,000 KM. The Inspectorate's notice gives the lowest amount, 1,000 KM. Access to the system is free. Check how to register with your municipal administration or the competent ministry.

Laws and sources

• Law on Amendments to the Law on Income Tax (Službeni glasnik RS no. 114/25 of 29 December 2025, in force from 1 January 2026)
• Law on Income Tax (Službeni glasnik RS nos. 60/15, 5/16, 66/18, 105/19, 123/20, 49/21, 119/21, 56/22, 112/23, 110/24 and 114/25): arts. 4, 14, 21 to 26, 27a to 27v, 31 to 35, 52a, 59 to 61. Rates and thresholds were read from the official texts of the 119/21, 112/23 and 110/24 amendments published on the Tax Administration website, and the 114/25 amendments from the official gazette.
• Stricter controls of hospitality providers (Inspektorat RS, 24 April 2026)