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Press statement | 29.07.2021

Enabling persons living in one and working in other entity to claim tax refunds

Human Rights Ombudsman of Bosnia and HerzegovinaHuman Rights Ombudsman of Bosnia and Herzegovina

In complaint case no Ž-BL-06-321/21, filed by S.D. of Istočno Novo Sarajevo, IHROBiH considered the issue of exercising the right to tax refunds by persons living in one and working in the other entity. More specifically, the complainant purchased a flat in Istočno Sarajevo using a loan from the Republika Srpska Investment and Development Bank (IRB). However, she cannot get the tax refund on the interest, which she is entitled to as a first-time home buyer using a loan, since she works in Sarajevo (Federation of Bosnia and Herzegovina). Her employer contributions are paid in the Federation of Bosnia and Herzegovina, and the Tax Administration of the Federation of Bosnia and Herzegovina cannot refund the loans for flats in the territory of the Republika Srpska. Believing that citizens should not be put in a different or unequal position because of their choice of work or residence, IHROBiH sent a recommendation (P-189/21) to the National Assembly of the Republika Srpska and the Parliament of the Federation of Bosnia and Herzegovina to consider aligning or amending the existing legal framework within their competences with a view to resolving tax refund claims from citizens living in one and working in the other entity.



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