Draft Law on Mitigation of Negative Economic Consequences

On 6 April 2020, the Government of FBiH held its 167 emergency session and proposed the Draft Law on Mitigation of Negative Economic Consequences (the “Draft Law”). The Draft law has been sent to the parliament in emergency procedure.

10 Measures for mitigation of negative economic consequences the Draft Law introduces

1. Subsidizing mandatory contributions 
2. Cessation of calculation and payment of default interest on public revenues 
3. Abolition of the obligation to pay corporate income tax advance payment 
4. Abolition of the obligation to pay personal income tax advance payment, from an independent business activity (i.e. self-employment)
5. Interruption of all administrative, litigation, non-contentious and enforcement proceedings during the lasting of state of an accident
6. Suspension of calculation of default interest on late payments, in debtor-creditor relations
7. Suspension of enforced of pecuniary claims
8. Keeping the stability of individual payments
9. Delayed application of regulations
10. Establishment of a Guarantee Fund

To Whom the Draft Law Applies To

• To all business entities that fulfil conditions stipulated within the law

Priority in Application

• In case of discrepancies between provisions of other laws and this law, provisions of this law should prevail