Remote Work and Digital Nomads (Taxes)
The concept of so-called "Remote" work (the local term is most often "Work at a remote place of work") has experienced tremendous and lasting growth since 2020. While for you it is a great way of comfort, from an accounting perspective it hides unique additional legal elements.
🏠 Working from home within the same country (Domestic residents)
If you live in the state Bosnia and Herzegovina and regularly reside there, and you work for a company from the same neighboring city but have reached an agreement on exclusively "employment with remote action" in your home armchair, the taxation system remains the same as if you were physically sitting in the company. At the same time, you become liable for calculating salary according to regular and known percentage rules and tables for taxes and contributions. That's why your salary amount from our calculator turns out exactly the same, except in one detail – cost reimbursements.
Reimbursement for utility costs
According to the local Labor Law, the employer has recently been obliged (if you work from home for a larger and more substantial part of the monthly working hours) to pay a flat-rate, tax-free reimbursement of work costs (electricity, wifi/internet, water) and it does not enter the gross calculation or the tax threshold.
🌍 "Digital Nomad" Status (Foreigners)
With the aim of strengthening winter tourist residency and the consumption of foreign capital from abroad outside the summer and classic tourist season itself, many countries have introduced a special, isolated immigration <strong>foreign visa program for Digital Nomads</strong> in the Law.
A citizen of a third large or intercontinental distant state who is employed by a corporate employer without any domestic registered judicial and court headquarters performs work through an extremely long-term approved visitor visa for residence.
In order not to "scare" them with progressive taxes, the law often provides for an exemption or complete waiver of any collection and claim from paying income tax on the nomadic amount of income for a certain period.