Igor Vujasinovic Senior Accountant

Eurofast Global BosniaNovember 18th, 2015

Agenda

A word or two about Bosnia…Bosnia and Herzegovina, or sometimes simply called Bosnia, is located in Southeastern Europe. The country is bordered by Croatia (EU) to the north, west and south, Serbia to the east and Montenegro to the southeast. Its capital and largest city is Sarajevo. Bosnia consists of two entities (Republic of Srpska and Federation of Bosnia and Herzegovina) and a Brcko District.

Bosnia is a beneficiary of free trade agreements and enjoys a preferential export regime with many countries of theregion and world:- Central European Free Trade Agreements (CEFTA)- Trade Agreement with the EU- Free Trade Agreement with Turkey- Free Trade Agreement with EFTA (Switzerland, Norway, Iceland and Liechtenstein)- Unilateral preferential regime with the USA, New Zealand, Switzerland, Norway, Japan, Russia, Kazakhstan, Belarus, Canada and Australia

Electricity price- among the lowest in the region and in the EU 0.044 € /kWhTax policy- VAT 17%- Profit tax 10%- Income tax 10%- Social Security and Contributions rate 33% (Republic of Srpska), 41,5% (Federation B&H)- Non-taxable part of income 102 € (RS) 153 € ( Federation B&H) Cost of labor

Key sectors

Metal Industr

yWood

IndustryFood

Industry

Energy Tourism

According to Law on free zones in B&H, a Free Zone is part of the customs territory of Bosnia and Herzegovina, which is specially fenced and marked and where business activities are carried out under special conditions in accordance with the Law on Customs Policy of Bosnia and Herzegovina and the Law on free zones.A free zone shall be established in the area of a place having a sea or river port or an airport, which are opened for international public traffic or next to the main road or main railroad and other places where there are conditions for the free zone operation.Any industrial, commercial or service activity not endangering the environment, health of people,property or national security can be carried out in a free zone.

Borders directly with the European Union through Croatia, has multiple free trade agreements signed with the countries in the region and across the Southeast Europe and Eastern Mediterranean.Located in the westerns Balkans, its unique geo-strategic location and connections to modern transport infrastructure make Bosnia very desirable location for moving your business closer to EU and Southeastern countries.Besides EU proximity, Bosnia (through its trade agreements) offers opportunity for placement of goods to Southeastern market. Many EU countries are opening branches in Bosnia, for this purpose.

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Strategic position with access to 600 million customers.

The ideal location for setting up business in

Southeast Europe.

Fast and safe transport to the EU

and Middle East countries.

Business friendly

environment. Competitive labor costs.

Availability of suitable Industrial and

Business zones.

Advantages

Users of Free Zones do not pay VAT and import customs. Investment in free zone, transfer of profit and transfer of investment are free of charge.

Customs and tariffs are not paid on imports into the free zones.The imports of equipment that will be used for manufacturing within the free zone are exempt from paying customs, duties and fees. Faster administration for location approvals, construction permits and reduced costs for certificate of occupancy for usable areas.

Reduced municipal fees for facilities construction, payment in installments etc.

Laktasi Municipality Industry Zone- Business friendly environment and efficient

local administration.- Over 40 million € invested in the overall

improvement of local community and development of the private sector.

- The international quality standard for local government ISO 9001:2008 (first Municipality in Republic of Srpska, second in B&H).

- Local Economic Council established to foster dialog between public and private sector.

- Business friendly certification.- Fast track procedure for the issuance of

decisions on registration of entrepreneurial activities in one day.

Vogosca Free Zone, Sarajevo Infrastructure: - Road connection,- Electricity,- Water,- Gas, - Phone & Internet, - Sewage (organized transport available). Total Land Area 106 600 square meters Selling price - In agreement with an investor Rental price (per square meter) 1.02€ - 1.79€ Business buildings Area 50 000 square metersPurpose Production / storage facilities Selling price - In agreement with an investor Rental price(per square meter) 2.55 € - 5.11 €

Visoko Free ZoneInfrastructure: - Road connection,- Electricity,- Water,- Gas, - Phone & Internet, - Sewage. Total Land Area 170 701 square meters Selling price – 2,04 € Business buildings Area 44 832 square metersRental price (per square meters) – 4,09 €

Free Zone Hercegovina, Mostar

Infrastructure: - Road connection,- Electricity,- Water,- Phone & Internet, Total Land Area 435 663 square meters Rental price – 3,06 € Business buildings Area Production halls 91 982 square metersStorage halls 31 273 square metersOffice area 33 113 square meters

- Investors planning a breakthrough on Southeastern Europe and EU market, and usage of regional trade agreements benefits.

- Companies from EU interested in using CEFTA agreement benefits.

- Companies already doing business on B&H territory, in order to expand their capacities and reduce operational expenses.

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ABOUT EUROFASTEurofast is a regional business advisory organisation employing

over 200 people in South East Europe & East Mediterranean. Our team of professionals is capable of efficiently addressing all

client needs in one single meeting, using one single language for all the countries in the Region.

Eurofast in numbers…

Over

200people across South East Europe and East

Mediterranean

21Offices in SEE and East

Mediterranean

5-35Team members in

every office

1Reference point;

1 meeting handles all!

Where can you find us▪ Lefkosia▪ Athens▪ Thessaloniki▪ Sofia▪ Bucharest▪ Belgrade▪ Tirana▪ Skopje▪ Pristina▪ Banja Luka/

Sarajevo

▪ Zagreb▪ Cairo/ Alexandria▪ Podgorica▪ Kiev▪ Moscow▪ Tbilisi▪ Beirut▪ Erbil

What we are good at…Our Services

•International Tax•Mergers & Acquisitions and Transactional Advisory•Transfer pricing•Accounting services•Financial services•Outsourced Payroll and Employment solutions•Corporate services•Citizenship & Residency services•HR administration

•Banking and Financial services•Business Restructuring & Insolvency•IT specialized services•Tax Planning & Tax Compliance•Real Estate tax•Shipping Tax•Energy Tax•Intellectual property•market entry services

www.eurofast.eu

Find us online

Thank you for your attention

For any additional inquiries on Free Zones in Bosnia please contact Eurofast Bosnia – banjaluka@eurofast.eu

Office: + 387 961 610