Freelance and Copyright Contracts in Bosnia and Herzegovina
Copyright royalties in Bosnia and Herzegovina are governed by entity-level laws. The Copyright and Related Rights Act of BiH (Official Gazette BiH 63/10) regulates authors' rights at state level, while taxation of copyright fees falls within entity jurisdiction (FBiH and RS), each with different rules.
Copyright contract in the FBiH and RS
In the FBiH, the withholding tax on copyright fees is 10%. The payer (legal entity) is required to calculate and remit the withholding tax. In the RS, the withholding tax on copyright fees is also 10%. Notional expenses that may be deducted are regulated by law – in both the FBiH and RS, the permitted deduction is 20-30% depending on entity regulations.
Contributions and distinction from employment contracts
A copyright contract is not equivalent to an employment contract. An author receiving a fee under a copyright contract is not an employee and has no employment rights (annual leave, sick leave, notice period). Social insurance contributions (pension, health) may be compulsory depending on entity regulations and the author's status (whether already insured on another basis). Payers must calculate and report to the relevant tax authority. The copyright contract gives the author rights under the Copyright Act.
Registration and special aspects
An author who regularly receives fees may be required to register for VAT (if income exceeds the threshold of 50,000 BAM). Foreign authors receiving fees from BiH legal entities are subject to withholding tax. BiH has signed double taxation avoidance treaties with a number of countries, which may affect the tax treatment.
Frequently Asked Questions
What is the tax rate on copyright fees in BiH?
Both in the FBiH and the RS, the withholding tax on copyright fees is 10%. Notional expenses (20-30%) can reduce the tax base depending on entity regulations.
Does an author under a copyright contract have the same rights as an employee?
No. An author working under a copyright contract is not an employee and has no entitlement to annual leave, sick leave, notice period or other employment benefits. Only rights under the Copyright Act (right of authorship, integrity of the work, etc.) remain with the author.
What are the moral rights of an author under BiH copyright law?
The Copyright and Related Rights Act of BiH (Official Gazette BiH 63/10) guarantees authors moral rights (right of authorship, right to name, right to protect the integrity of the work) and economic rights. Moral rights are inalienable and irrevocable.