FIC juli decembar 2015 EN FINALl v2 news (July - December 2015).pdf · ź HeidelbergCement leading in reporting on climate change impacts ź Deloitte Central Europe – the Tax Firm

FIC NEWSJuly - December 2015

FIC

Fra Anđela Zvizdovića 1/B11, 71 000 Sarajevo, BiH Tel/Fax: +387 33 295-880, Fax: +387 33 295-889 [email protected], www.fic.ba

Publisher: FIC - Foreign Investors Council

Editor: FIC Office

VSI Novosti

FIC NEWS

4-8

FIC News

ź New edition of the White Book 2015/2016 in progress ź FIC submitted a request for authentic interpretation of the FBiH Labour Law

contested provisionsź New Executive Director of the FIC in BiH appointedź Bureaucracy, obtaining permits, and corruption as the biggest obstacles to

investing in BiH

9FIC Presents

ź Marbo d.o.o. Laktašiź SRE Investment

10-16

FIC members' activities

ź BBI won the British Award for Corporate Social Responsibilityź ProCredit Bank designed 24/7 zones to meet clients' needsź m:tel is the winner of the world Best Buy Award for BiHź HeidelbergCement leading in reporting on climate change impactsź Deloitte Central Europe – the Tax Firm of the Year and the Transfer Pricing

Firm of the Year 2015

17-21Adopted legislation review

ź Official gazette of Bosnia and Herzegovinaź Official gazette of Federation of Bosnia and Herzegovina ź Official gazette of Republika Srpskaź Official gazette of Sarajevo canton

22-23Economic review for BiH

ź Highlights

F I C N E W S 2015

F IC NEWS 3

Word of the FIC President

BRANIMIR MUIDŽA, President of FIC BiH

INTRODUCTION

Dear colleagues, partners, ladies and gentlemen;

We hereby present you the sixth issue of the FIC's News-letter for the period July – December 2015.

Analysing the recent period in terms of the investment clima-te in BiH, it is evident that there was an unfavourable trend in the level of foreign direct investments.

It is a series of factors that have influenced the reduction in foreign investment inflows in BiH. The unstable political situation has definitely had a negative impact on the advent of new investments since investors seek stability in order to have long-term pro-jections. In addition, the BiH structure, itself, causes exce-ssive bureaucracy rapidly ex-panding on various levels with-out clear restrictions of powers and responsibilities, further resulting in its inefficiency.

Moreover, the unpredictability of tax development, inefficient administration, long deadline for obtaining permits, lack of transparency in application of regulations, legal insecurity, declining purchasing power, negative demographic trends have certainly affected the level of investments in BiH.However, the greatest and bal-dest investors have managed to survive and stay in BiH for now, because they think in the long run so the current un-favourable circumstances can-not shake them. Therefore, it is important to improve the circumstances as soon as possible in order to attract the much-needed capital, new

investments, new technolo-gical innovations and stimulate employment.

This is supported by the results of our recent survey entitled “FIC Business Barometer“, which are promising and indicate that our Members have demonstrated willing-ness to recommend BiH as a country for investments (81% respondents), and a country for reinvestment in the next two years (67% respondents). The survey has shown that the key benefits of BiH as a country favourable for investments are: domestic market poten-tial, geographical and strategic location and highly educated labour at competitive prices.

The Council of Foreign Inve-stors of BiH intends to issue a new “White Book“ in 2016, which has become a part of the reform processes at BiH insti-tutions, suggesting the intense cooperation of FIC and autho-rities. I am pleased to see the desire for dialogue and efforts to implement the majority of recommendations by both Entity governments, since they generally match the proclaimed goals of the Reform Agenda, which, among others, include elimination of barriers to businesses and invest-ments, making it sound cer-tainly promising. However, it is necessary to ensure the chan-ges, reforms, are oriented and actual ly implemented in accordance with the Agenda's goals. I think there exists a positive impetus and serious commit-ment to head decis ively towards changes, and at the same t ime not to make mistakes, such as not to en-

courage profit reinvest-ments for it is an excellent tool to attract new investors, and keep the existing ones. The FIC shall provide support to all its Members and the autho-rities to actually implement these changes.

As for the 2016 forecasts, economic analysts predict the FDI inflow moving from 880 to 930 million KM.

In the following section of the Newsletter, we shall provide you with an insight in our past work and the FIC's future projects. Joint coordination and cooperation, as well as the ready market access and the European perspective are still the focal point of our activities.

Yours truly,

BRANIMIR MUIDŽAPresident of FIC BiH

F IC NEWS4

Cooperation Council meeting (CC)

n

FIC NEWS

New edition of the White Book 2015/2016 in progress

The meeting of the Coope-

ration Council (CC) organized

by the BIH FIC took place on

29th October 2015 in Saraje-

vo. The theme of the meeting

was the implementation of the

new Labour Law of FBIH – the

FIC recommendations to the

respective governments.

The guest speaker at the

meeting was Ms. Emina Sarač,

Head of HR Department at

Raiffeisen bank dd BiH and

Team Leader of the FIC Labour

Law Workgroup.

Ms. Sarač has, on the FIC's be-

half, presented the new law

views and perspectives in its

implementation stage. The

guests had a discussion on this

issue and came to a mutual

conclusion on the further to-

pics to be addressed in the new

edition of the White Book con-

cerning the Labour Law, as well

as the issues to be directed to-

wards the relevant institutions

in order to effectively imple-

ment the new law.

The guests have agreed to

support the FIC's efforts to en-

sure a proper implementation

of the new Labour Law and to

eliminate the obstacles and

problems hindering its normal

economic growth.

Following the presentation, the

CC representatives, the repre-

sentatives of the associa-

tions/organisations and fo-

reign embassies in BiH have

engaged in an interactive dis-

cussion on the topic of inter-

pretation of the contested pro-

visions of the new Labour Law

of FBiH.

n

In 2016 the BiH Foreign Inve-

stors Council shall publish the

new edition of the White Book

2015/2016 which is planned to

be launched in spring. The

workgroups involved in draft-

ing of the White Book are

currently finalizing the chap-

ters covering the following

areas:

ź Taxes and Fiscal Policy

ź Labour law

ź Permits (construction, envi-

ronmental and energy)

ź Concessions and public-

private partnership

ź Rule of law

ź Corporate law

ź Energy efficiency and oil

derivatives

The special new practice rela-

ted to the creation methodo-

logy of the White Book is that

the relevant government insti-

tutions representatives shall

actively participate in the

workgroups meetings, with the

view of harmonizing the new

recommendations with the re-

levant institutions work plans

in order to implement them in

an efficient and more concrete

manner.

One of the most significant

milestones in the BiH business

circles is certainly the promo-

tion of the White Book 2015/16

scheduled to be held in Sa-

rajevo and Banja Luka in

May/June 2016. This occasion

shall, among the FIC Member

representatives, gather also

the representatives of the

international community in

BiH, international and dome-

stic business organisations

and the relevant government

representatives in the capacity

of our direct partners in the

system reform implemen-

tation referred to in the White

Book.

F IC NEWS 5

Activities of the FIC Tax and Fiscal Policy Workgroup

FIC submitted a request for authentic interpretation of the FBiH Labour Law contested provisions

n

In order to achieve full and pro-

per implementation of the new

Labour Law of the Federation of

BiH (Labour Law), and to avoid

risks of the Labour Law accide-

ntal violation due to misinter-

pretation of the new Labour Law

ambiguous provisions, the La-

bour Law Committee acting as a

member of the FIC, has sub-

mitted a letter with a request for

authentic interpretation of the

Labour Law provisions to the

FBiH Parliament by the relevant

Ministry of Labour and Social Po-

licy of FBiH. This FIC's initiative

was supported by the American

Chamber of Commerce in BiH

(AMCHAM) and German Cham-

ber of Commerce in BiH (AHK),

which also countersigned the

said letter.

The initiative is intended to pre-

vent misinterpretations of the

new Labour Law by employers

themselves or other authorities

referring employers to take cer-

tain actions. Practice has shown

that the relevant authorities,

even judges in labour disputes,

have different interpretations of

the law, and only the authentic

interpretation can provide prote-

ction to both employers and em-

ployees. It is crucial to remove

legal insecurities in the case of

the FIC Members, as the BiH in-

vestors. Given that the country

is focusing to enable the further

investment inflow, both foreign

and domestic, therewith it can

be concluded that removing le-

gal insecurities is in everyone's

best interest.

FIC NEWSVSI NOVOSTI

FIC NEWS 2015

The FIC's Tax and Fiscal Policy

workgroup, led by Ms. Mubera

Brković, Tax Expert, actively

operated in the second half of

2015. The workgroup focused

mostly on delivering proposals

and suggestions in drafting the

new Law on Corporate Income

Tax of FBiH. The FIC Members'

comments on the law have

been forwarded to the Federal

Ministry of Finance and taken

into serious consideration. The

new Law on Corporate Income

Tax in FBiH has been submitted

for parliamentary procedure

and its adoption is expected in

a short-time notice.

The new law recalls exporters

privileges as well as retained

privileges based on investment

and reinvestment including

certain modifications compa-

red to the previous law.

The workgroup members have

agreed that the text of the new

law does not properly regulate

the issue of bank provisions

and that the new provisions of

the law shall pose a problem in

practice. The members have

concluded that it is crucial that

the new law stipulates clear

regulations in terms of bank

provisions.

In addition, the FIC members

have provided an overview on

the legal provisions of the

newly-adopted Law on Corpo-

rate Income Tax of RS, conclu-

ding that the law contains

some deficiencies which can be

overcome by adopting appro-

priate regulations and by-laws.

One of the outstanding issues

remains the taxation of busi-

ness units not provided in the

new law of FBiH, resulting in a

double annual income tax re-

turn and representing a major

problem for legal entities ha-

ving more business units in

both ent i t ies and Brčko

District.

Moreover, the new Law on

Corporate Income Tax of RS

omits the provision providing

the possibility of a single tax

return, in order to harmonise it

with the FBiH Law.

The members have decided

that the solutions contained in

the entity laws are not accep-

table and the possibility for

filing a single tax return should

be introduced, based on the

residence of a tax payer.

The general conclusion to be

made is that it is necessary to

wait for the final adoption of

the Law on Corporate Income

Tax of FBiH, and then provide

the recommendations for the

relevant law provisions to be

included in the following

edition of the White Book.

n

F IC NEWS6

New Executive Director of the FIC in BiH appointed

Cooperation with CONFINDUSTRIA

n

n

FIC Board of Directors has accep-

ted the proposal for cooperation

by the Italian Association of

Industrialists and Entrepreneurs in

Bosnia and Herzegovina, ConfIn-

dustria in BiH. The Association's

members are the Italian promi-

nent entrepreneurs having im-

mense tradition recognized across

five continents, who are seek-ing

new investment opportunities,

establishing new relationships,

most commonly combining

economic development with gro-

wth in relationships between

people, and growth in relation-

ships between their institutional

representatives. ConfIndustria

consists of 146,000 companies

employing around 5.5 million

workers. It operates throughout

Italy, disposing of 18 regional and

23 sectorial federations, among

which the metal-mechanical is the

most significant. Following the

signing of the Memorandum of

Cooperation, the process of its

formalization is scheduled for early

2016.

The representatives of the FIC and

ConfIndustria BiH have expressed

their readiness to contribute to the

overall development and improve-

ment of the investment climate in

BiH by the means of the said

Memorandum and their joint

efforts. The common goal is to

help those who wish to invest in

BiH and offer cooperation, as well

as enhance the link with other BiH

organisations promoting foreign

investments and providing assis-

tance to entrepreneurs.

FIC NEWS

At its last session in 2015, the

FIC Board of Directors appoin-

ted a new Executive Director,

Sanja Miovčić.

Sanja Miovčić took office on 1st

January 2016, taking over the

position of the long-standing

Executive Director Ms. Bojana

Škrobić-Omerović. She has

more then 15 years of pro-

fessional experience in nume-

rous international companies

and organizations. Before join-

ing the FIC she worked as a

Business Development &

Marketing Coordinator at the

respectable Austrian con-

sulting company Wolf Theiss.

„I would like to thank the

members of the Board of

Directors for their trust. I look

forward to the challenge and

commitment at the FIC. During

many years of work I was

guided in different directions,

where by following my own

affinities and demands of emp-

loyers I successfully overcome

various segments of economic

and non-economic activities

and adopted certain skills and

knowledge. I am highly moti-

vated to work in the FIC, I feel

ready and capable to, in

accordance with the vision and

mission of the association,

meet all the challenges that

operations related to the

successful coordination of the

FIC activities require. Inex-

haustible energy and effort

that some members of the FIC

invest in that direction, and

that in spite of their regular

duties, its involvement in the

FIC take very professionally,

serve as an additional motiva-

tion and inspiration for me to

contribute to further active

work as the person who will

represent the interests of the

founders and members with

the main goal for FIC to justify

and maintain its important role

supporting business environ-

mental reforms in BiH" said the

new Executive Director.

F IC NEWS 7

VSI NOVOSTI

Banking secrecy in Bosnia and Herzegovina

n

According to the current banking

secrecy regime under the FBiH and

RS banking laws, any information

obtained during the performance

of the banking activities qualifies as

business secret and must be kept

confidential.

Accordingly, the supervisory board,

the management and all emplo-

yees as well as any other person

engaged to work in or for the

bank, are obliged to keep such in-

formation as a business secret and

must not use such information for

personal gain or disclose it to third

parties other than to the respon-

sible Banking Agency of FBiH or RS

(each an "Agency") (including the

inspectors and auditors), emplo-

yees of the "Ombudsman" for the

banking system, and other per-

sons who are authorized or appo-

inted by the res-pective Agency

and other competent authorities, in

accordance with the applicable

banking law.

The current banking secrecy sys-

tem is planned to be changed in

both entities and accordingly drafts

of respective amendments ("Draf-

ts") have been published. The

Drafts in particular contain provi-

sions which elaborate in more de-

tails what is to be considered a

banking secret and what not.

Based on the Drafts, a "banking

secret" is considered to be any da-

ta, facts or knowledge that the

members of management and

other corporate bodies, sharehol-

ders, bank employees performing

tasks and carrying out duties

within their jurisdiction, as well as

the independent auditor of the

bank and other persons who due

to the nature of their job have

access to such information, have

acquired and the disclosure of

which to unauthorized persons

causes or could cause adverse

consequences for the bank and its

clients. The information that will be

considered as a banking secret is in

particular information known to the

bank relating to personal data, fi-

nancial status and transactions of

customers of the bank and data on

the balance and the turnover on in-

dividual deposit accounts opened

with that bank.

The Drafts also stipulate the re-

quirement for banks to adopt an

internal act governing the informa-

tion that is considered confidential

and describing the manner of

access, use, exchange, preserva-

tion and protection of relevant data

as well as the procedure for termi-

nating respective confidentiality.

The Drafts further specify authori-

ties to which information subject to

banking secrecy must be disclosed.

Here, the Drafts outline, inter alia,

the financial police, judicial authori-

ties, tax administration authorities,

the Central Bank of BiH, and fore-

ign regulatory authority.

Besides the mandatory disclosure

to authorities, the Drafts also con-

tain provisions as to disclosure of

information subject to banking sec-

recy to other group companies as

well as third parties. Based on the

Drafts, inter group disclosure will be

possible when it concerns the risk

management. This is of importance

and will help to ease the process for

banks with foreign founders in

relation to the transfer of informati-

on, since at present banks have to

have the consent of the data

subject for such disclosure and

transfer according to the data

protection rules. What will also be

helpful are the proposed rules on

the possible disclosure of informa-

tion to third parties (co-borrower,

pledgor, or guarantor), which under

certain circumstances will no longer

require a lengthy process, and the

initiation of civil proceedings, and it

depends on the judge/court whet-

her such order for information will

be issued.

The current banking legislation

provides for fines in case of a bre-

ach of banking secrecy which are

not foreseen to be amended in the

Drafts. Whereas the Law on Banks

in FBiH provides for fines between

BAM 500 (approx. EUR 250) and

BAM 15,000 (approx. EUR 7,500),

depending on who violated the se-

crecy obligation, the Law on Banks

in RS outlines higher fines. In RS a

bank may be fined in an amount

between BAM 20,000 (approx.

EUR 10,000) and BAM 100,000

(approx. EUR 50,000) and a res-

ponsible person in the bank in the

amount between BAM 3,000 (app-

rox. EUR 1,500) and BAM 20,000

(approx. EUR 10,000).

Considering that the rules on ban-

king secrecy are not regulated in

detail and that the banking secre-

cy can be lifted in circumstances

prescribed by various laws, includi-

ng the Law on Prevention of Mo-

ney Laundering and Financing of

Terroristic Activities or the Criminal

Code, the proposed changes will

lead to more certainty as to when

and to whom such information

subject to banking secrecy may be

disclosed. Furthermore, the rules

on personal data protection outli-

ned in the Drafts supplement the

banking secrecy rules and provide

for more certainty for bank custo-

mers in case of a transfer of such

data.

All in all, the suggested amend-

ments to the banking secrecy re-

gime will bring more clarity to the

existing "grey zone". There is no

information on when the proposed

amendments will enter into force.

However, according to the recom-

mendations from the International

Monetary Fund's Country Report

(May 2015) the Drafts should be 1enacted soon.

(1) International Monetary Fund, IMF Country Report No. 15/214, Bosnia and Herzegovina, Financial Sector Assessment

Program, Banking Sector Supervision Core Principle, Implementation Update—Technical Note, May 2015

FIC NEWS

FIC NEWS 2015

F IC NEWS8

FIC media campaign

FIC BUSINESS BAROMETERBureaucracy, obtaining permits, and corruption as the biggest obstacles to investing in BiH

n

n

On the occasion of marking the

10th anniversary of the

association FIC in BiH, it has

been planned to launch a

media campaign to enhance

the business environment in

BiH. Within a few months

envisaged for the media cam-

paign, short videos on various

bureaucratic issues faced by

the BiH economy shall be

A joint project of the FIC and

USAID/Sida project on impro-

vement of local development

(GOLD) in BiH presented the

public with the results of the first

report „FIC Businees Baro-

meter“ on 17 December 2015.

A survey conducted among the

FIC members aims to obtain a

clearer insight on the members'

satisfaction level regarding their

business environment, the set-

backs faced by the investors as

well as their plans for reinvest-

ment and to provide more em-

ployment opportunities in BiH.

Peter Duffy, Director of the

USAID Mission in BiH stated:

"Bosnia and Herzegovina has

great natural and human

resources as well as a complex

broadcasted (complicated pro-

cedures, high and unnecessary

taxes, unenforceable laws)

and the public shall be infor-

med about the status and im-

portance of implementation of

the regulatory reforms in our

country.

The campaign aims to draw

public attention and make

positive pressure on the rele-

political structure, non-trans-

parent regulatory regime and

inadequate judicial practice

hampering prospective invest-

ments. However, it is notable

that the adopted Reform Agenda

raises the opportunity for

government officials to imple-

ment improvements in the

business environment with less

bureaucracy.“

"Providing more efficient and

better quality public services,

especially without corruption or

favouritism is crucial. Improving

the business climate, as one of the

pillars of the Reform Agenda, shall

push the country forward on its

path towards the integration into

the European Union and en-

courage long-term sustainable

economic growth and develop-

ment," said Marie Bergstrom,

Director of Development Co-

operation at the Swedish Embassy

in BiH.

“FIC Business Barometer“ reflects

the FIC members' attitude

vant institutions to resolve

certain inherent bureaucratic

issues, to raise public aware-

ness about the importance of

the presence of good condi-

tions for „healthy“ entrepre-

neurship in order to provide

new employment opportuniti-

es, develop an efficient count-

ry and improve living stan-

dards.

accounting for 70% of the total

foreign investments in BiH. “It is

our intention to display our opinion

towards the business environment

in BiH in this research, as well as

the extent of our contribution to

the BiH economy develop-ment if

the obstacles for in-vestments

have been removed. The results

clearly indica-te that the desire

and intention to reinvest and

employ new workers are evident,

but the biggest entrepreneurships'

challenge is bureaucracy, the

time-consuming process of ob-

taining permits, and corruption“

added Branimir Muidža, President

of the Foreign Investors Coun-

cil/CEO of Heidelberg Cement

Group in BiH. The FIC members

are assured that the research

results shall serve as an indicator

to all decision-makers to create

reforms improving the position of

investors and attract new invest-

ments intended to enhance the

business environment and en-

courage further investments.

FIC NEWS

F IC NEWS 9

Marbo d.o.o. Laktaši

SRE Investment

n

n

Founded in 2000, the company

Marbo d.o.o. Laktaši is one of the

leading snack foods manufactu-

rers in Republika Srpska, Bosnia

and Herzegovina. The company

owns the following brands: CHIP-

SY, Pardon, Clipsy and Gud which

have been recognised as delicious

and quality products with consu-

mers.

The company's main activity is

production of potato crisps sold

under the brand Chipsy. The pota-

to crisps production includes the

quality local potatoes grown in

Laktaši. The potato production is

carried out by means of cooperati-

ves, the use of modern agrotech-

nical measures and the company's

own machinery. The company dis-

Al Shiddi Group was founded in

1975 and today it employs more

than 1000 people all over Europe,

Africa and Asia. Group conducts bu-

siness in various fields, including:

construction, investments, real esta-

te, agriculture, industry and hotel

industry. In Bosnia and Herzego-

vina, since 2006 Al Shiddi Group

has four members: SRE Invest-

ment, Shad Invest, Sarajevo City

Center (SCC) and Hotel Bristol.

SRE Investment is the youngest

group member, founded in 2015.

SRE Investment joins together a

group of young and creative pro-

fessionals, ready to make a huge

impact in the regional business sce-

ne. They are also your primary con-

tact point if you are interested in

purchasing a villa at Poljine Hills, or

if you are thinking about investing in

the Bosnia and Herzegovina and the

South East Europe region. SRE In-

vestment operates in five areas:

consulting, real estate and develop-

ment, recruitment, trade, VIP

poses of modern production

equippment and technology and

has complied with the HACCP Cer-

tificate, ISO 14001 and FSSC

22000 Standards, as a certificate

of performing business while

maintaining high standards in

terms of food safety and environ-

mental protection.

As a distinctive potential, the com-

pany singles out the sales and dis-

tribution sector, which is in charge

of sales and distribution of the

products CHIPSY, Pardon, Clipsy

and Gud on the market of Repub-

tourism and hospitality. In line with

their slogan “we get things done”,

enjoy the process! Your next

partner in Bosnia and Herze-

govina, SRE Investment.

Sarajevo City Center (SCC) is

comprised of four separate but at

the same time complementary

parts: a modern five-star hotel,

commercial and office space, sho-

pping center with entertainment

complex and an underground par-

king garage to accommodate for

the entire Center. Shopping Mall is

spread on over 49 000 square

meters. Around 80 shops offer

world-wide known brands in fas-

hion, sports and technology for a

unique shopping experience.

Shad Invest is an amazing team of

engineers and architects with a

lika Srpska, Bosnia and Herzego-

vina, through its own network of

distribution centres. A portion of

the production programme is

exported on the Croatian and Slo-

venian market.

Since 2008, Marbo Laktaši and its

parent company Marbo Srbija ha-

ve become a part of the company

PepsiCo, the world's leading food

and beverage producer whose

products LAY'S, Cheetos, Ruffles

and others are recognizable world-

wide.

The company's good organisation

performance is reflected in its sub-

stantial business reputation on the

market, fostering and improving

of its business relations, as well as

the favourable sales effect.

visionary management, who are

directly responsible for some of

the biggest developments in Bos-

nia and Herzegovina, including Po-

ljine Hills. Shad Invest is known in

the market for having the hardest

working and the most talented

and inspiring staff, moving bor-

ders in both the visual appeal of

their developments, as well as in

their efficient and environment

friendly construction.

Hotel Bristol is the only first

class international hotel in Bosnia

and Herzegovina. Contemporary

design, stylish dining and state of

the art meeting facilities, all care-

fully planned to provide memo-

rable and cheerful experiences.

The 186-room Hotel Bristol Sara-

jevo is a 12-story, luxury hotel lo-

cated about five minutes from the

Old City via taxi or the hotel's shu-

ttle. There's an indoor swimming

pool, underground parking, and a

mini-fridge stocked daily with

juices and water.

FIC PRESENTS

FIC NEWS 2015

F IC NEWS10

BBI won the British Award for Corporate Social Responsibility

ProCredit Bank designed 24/7 zones to meet clients' needs

n

FIC MEMBERS' ACTIVITIES

Bosna Bank International (BBI)

has received the Best CSR (Cor-

porate Social Responsibility) Bank

B&H 2015 Award from the UK's

leading financial portal Global Ban-

king & Finance Review.

The expert jury has decided to

award the Best Bank in 2015 Prize

in recognition of its continuous

commitment and excellence in the

field of corporate social responsibi-

lity.

"BBI is not strictly guided by

commercial and banking prin-

It is highly essential for ProCredit

Bank in BiH, specialised in provi-

ding banking services to the BiH

economy, small and medium en-

terprises, to respect its clients' ti-

me and provide quality consulting

services.

ProCredit Bank has been opera-

ting in BiH since 1997 and is spe-

cialised in providing services to the

small and medium enterprises in

the country. In its operations, the

Bank focuses on responsible ope-

ration with the economy, carefully

analysing its business entrepre-

neurs and providing services ac-

cording to their needs. As a mem-

ber of the ProCredit Group, com-

prising 14 banks, ProCredit Bank

is the only bank in the country

ciples. Such a development app-

roach has yielded good results,

both in the business sector and

CSR sector. The Editorial Board

comprised of the eminent experts

in the most significant economic

areas has awarded the prize to BBI

bank, based on the four-category

assessment: as a bank focussing

on the economic development in

the country through investments in

the business development and

growth via BBI VIP Business Club.

Then, its corporate social responsi-

bility is reflected through invest-

ments in human resource develop-

ment through BBI Academy, and

support the community in which it

operates through a number of CSR

projects, and a commitment to im-

proving the quality of service," said

Wanda Rich, Editor of the Global

Banking & Finance Review, in the

with 100% German capital.

ProCredit Bank has been a mem-

ber of the Foreign Investors Coun-

cil since 2008.

Maja Mehmedović, Management

Board member of ProCredit Bank

in BiH discusses the implementa-

tion of the 24/7 Zone innovative

concept in 2015.

Can you explain the Zone 24/7

and the reasons of its imple-

mentation?

It is highly essential for ProCredit

Bank in BiH, specialised in provi-

ding banking services to the BiH

economy, to respect its clients' ti-

me while providing quality servi-

ces. The implementation of the

self-service 24/7 Zones is a con-

award citation.

Last year, BBI Bank CEO Amer

Bukvić was awarded the Best

Banking CEO B&H 2014 Prize by

Global Banking & Finance. This is

an acknowledgement for the best

manager in the banking industry

of BiH which is awarded on an an-

nual basis by the British portal. On

this occasion, the financial experts

have assessed the strategic and

innovative approaches in the ban-

king industry, therefore awarding

the BBI bank CEO.

cept providing clients with the

opportunity to carry out necessary

banking transactions, such as de-

positing cash, paying bills and

other daily transactions, in a quick

manner and at the time that suits

them best. As the name itself sug-

gests, 24/7 zones are open 7 days

a week, 24 hours, providing a pre-

condition to have a bank open

24/7 for its clients.

At the same time, during the nor-

mal working hours of the bank's

affiliates, clients have access to

the Client Counsellors, who can,

through the implementation of the

24/7 Zones, completely specialise

in providing counselling services to

their clients on the selection of the

Bank's appropriate services.

FIC NEWS 11

n

VSI PREDSTAVLJAFurthermore, by introducing mo-

dern technology, as the first bank

implementing the concept of 24/7

Zones on our market, we have es-

tablished the way of conducting

banking operations of most Ger-

man banks, which have been pro-

viding this type of services for so-

me time, on the banking market in

BiH.

Which type of transactions can

clients perform in the 24/7

Zones?

In the 24/7 Zones clients can carry

out transaction banking activities,

specifically cash payments and

withdrawals, and all payment ty-

pes. Clients have access to the

ATMs for cash payment and with-

drawals, deposit safes particularly

important to entrepreneurs, small

and medium enterprises, which

enable deposit of cash and purcha-

se. The electronic banking termi-

nals provide us with useful infor-

mation on the banks' conditions

and offers, and the additional devi-

ces soon to be put into operation

are underway.

Which type of services can cli-

ents use in the Zones and what

is their interest in using them?

The 24/7 Zones services have

been designed according to the

needs of entrepreneurs. In the 24

Zones and withdrawals, all types

m:tel company is the winner of

prestigious Best Buy Award accor-

ding to Millennials BIH 2015/2016

research, for the best ratio of

service quality and prices of

mobile telephony in the BiH re-

gion. The award is delivered in

August 2015 by the Swiss agency

ICERTIAS - International Certifica-

tion Association GmbH with the

head office in Zurich.

The aim of the Best Buy Award

of payments via available ATMs,

deposit safes, and terminals en-

abling access to the bank's e-ban-

king.

Entrepreneurs are said to have

entrepreneurial spirit and charac-

terised as innovative, as well as

flexible and efficient. In this res-

pect, it wasn't unexpected to learn

that our clients have had a positi-

ve reaction to the implementation

of the 24/7 Zones. Most of our cli-

ents use cards and e-banking, and

they have accepted the concept of

the Zones as a practical means to

perform daily tasks. During the

first month, upon opening of each

24/7 Zone, 20% of our clients has

started to use them, and this

number is continuously increasing

by each month.

Within the concept of 24/7 Zones,

we have renovated all our bran-

project and certificate is to provide

buyers with easier search for the

best and most affordable products

and services on the market. This

award is a continuous interna-

tional project of research and

rewarding on local and interna-

tional markets, and the most

important is that it is based on

consumers' experience and

opinion only.

“Besides the fact this is a promi-

ches, whereby we have received

an additional positive reaction on

the refreshment from our clients.

Are you planning to introduce

new services?

Our future plans relate to additi-

onal expansion of business servi-

ces, in the aspect of possible use of

the 24/7 Zones, in particular the

aspect of coin management, and

the expansion of services regar-

ding savings depositors.

In addition to the 24/7 Zones, we

are constantly improving our ser-

vices, regarding their faster, more

efficient and favourable economic

provision. We must note that Pro-

Credit Bank, apart from the 24/7

Zones, as the first bank on the BiH

market, has introduced foreign in-

flows without the Bank's compen-

sation, thereby complying its tariffs

with the European banking mar-

ket, thus providing the BiH expor-

ters with the appropriate support.

For further information on ProCre-

dit Bank and the 24/7 Zones

please vi-sit the following link

www.procreditbank.ba.

nent award, which is pride of the

biggest world companies, we are

very glad for the fact that the

decision on it was made by the

ones whose opinion actually is the

most important – users”, was sta-

ted by m:tel company.

Normally, ICERTIAS performed

the research titled Best Buy Award

MILLENNIALS BiH 2015/2016 du-

ring July 2015 on 1,200 respon-

dents aged from 15 to 35 in BiH,

m:tel is the winner of the world Best Buy Award for BiHUsers in BiH awarded company m:tel for the best ratio of quality and price


FIC NEWS 2015

http://www.procreditbank.ba

http://www.procreditbank.ba

F IC NEWS12

Promotion through „MY PRODUCT“Interview with Mr Tomislav Slišković, Chief Manager of Sarajevski kiseljak d.d.

n


using CAWI - DEEPMA methodolo-

gy (Computer Assisted Web Inter-

viewing - Deep Mind Awareness).

The aim of this research was to

get an insight in experience and

perception of Y generation, so ca-

lled Millennials generation, on

products and services, as well as

producers and traders hex believe

are offering the best ratio of price

and quality (so called “best buy”)

on BiH market.

Entire research Best Buy Award

MILLENNIALS BiH 2015/2016 was

In the beginning, I would like

to ask you to introduce your

company?

The company Sarajevski kiseljak

was established more than 120

years ago, and today we are the

largest producer of natural mineral

water and soft drinks in our coun-

try. The production program of our

company includes carbonated

mineral water Sarajevski kiseljak,

soft drinks under the brands SKY,

Selection and SKI, and flavoured

mineral water Sarajevski kiseljak

Sensation.

Which business activities does

your company perform?

As I've already said, our main bu-

siness activities relate to the pro-

duction and distribution of natural

mineral water and soft drinks. Be-

side the production and sales of

our products, we also act as the

BiH exclusive distributor of the fol-

lowing brands: Jamnica, Jana, Mg

Mivela, Jana Ice Tea, Jamnica Pro

Sport, Belje Wines, Laguna Wines,

Ilok Wine Cellars, and Vizba Valan-

dovo.

How would you describe your

company's origins, and how

was the path to success deve-

loping?

The first written documents rela-

ted to the bottling of Kiseljak and

its import date back in 1864. Sin-

ce then, until now, Sarajevo Kise-

ljak has gone through various

transformations enabling it to be-

come a market leader and syno-

nym for product quality. Over all

those years, especially the year of

2000 when we joined the Agrokor

Group, a lot has been invested in

modernisation and improvement

of the production process. Our bu-

siness activities inserted ISO stan-

dards by the norms ISO 22000:

2005 and ISO 14001:2004

confirming our continuous concern

about product quality and busi-

ness processes, as well as client

satisfaction while respecting high

environmental standards and sus-

tainable development principles.

All the above has resulted in the

today's success.

How many employers do you

have at the moment?

At the moment, we're employing

approximately 320 workers provi-

ded that the number increases

performed pursuant to provisions

of the “International Code for Per-

formance of Market and Social Re-

searches” passed by the Interna-

tional Chamber of Commerce

(ICC) and European Society for

Opinion and Market Research

(ESOMAR). Best Buy Award prog-

ram is currently present in more

than twenty countries, where

leading media state results of the

performed Best Buy Award re-

searches on regular basis.

More information available on

www.mtel.ba

during the season. The company's

headquarters, our bottling plant

and the majority of staff are loca-

ted in Kiseljak, whereas the re-

maining staff is deployed at our di-

stribution centres in Bihać, Banja

Luka, Sarajevo and Tuzla.

Are your products export-orien-

ted, if yes, in which countries

do you export them, and what

can you tell us about your busi-

ness activities outside Bosnia

and Herzegovina?

Currently, around 33% of our total

production is being sold on the fo-

reign markets, especially the mar-

kets of Croatia, Sweden, the USA,

Canada, Australia, Austria, Mace-

donia, Montenegro, the Nether-

lands, Serbia, Denmark and Ku-

wait. Five years ago, we exported

our products to 8 countries, and

now, we have reached a two-digit

number. We are extremely satis-

http://www.mtel.ba

F IC NEWS 13

n

VSI PREDSTAVLJA

fied with the export performance,

but certainly there is still plenty of

room for growth.

What can you tell us about the

countries you export your

products to, namely the sales

activities in those countries?

The natural mineral water Sara-

jevski kiseljak, according to the

quality standards, is classified as

one of the best natural mineral

water in the world, as evidenced

by the international quality and

taste awards. It is also our most

demanded product on the foreign

markets. I would especially single

out the excellent results in the

neighbouring market of the Repu-

blic of Croatia wherein our pro-

duct, the natural mineral water,

Sarajevski kiseljak takes 3rd place

in the sales market. Our second

most demanded product is Sensa-

tion, and our company has recor-

ded excellent results when it

comes to export and sales of car-

bonated drinks under the brand

Sky (Cola, Cola GREEN, Orange,

Lemon) which take 2nd place on

the Croatian market. Currently,

around 58% of the Sky drinks are

being exported and sold on the

markets of the region.

Are you satisfied with the su-

ccess achieved or do you aspi-

re to greater success?

As much as you are satisfied with

the results, it is necessary to con-

stantly work on the further deve-

lopment of the company. Every-

thing is changing rapidly, technolo-

gy offers new opportunities there-

fore you need to be alert and rea-

dy to seize new opportunities. Li-

mits need to be always pushed, as

it was our guiding principle which

has got us where we are today.

Are you planning to expand

your production on a new

activity, a new product?

Our continual marketing invest-

ments have enabled us to focus

on our clients' needs and follow

the market dynamics, and accor-

dingly develop our new products.

Almost annually, we launch a new

drink or a new flavour. Therefore,

last year, we launched Sky Cola

Green, the first carbonated soft

drink in the BiH market, contai-

ning a natural sweetener extra-

cted from the stevia plant. This

year we have expanded the Sky

selection with Sky Mix. Sky Mix is

a beverage boosting the harmony

of Sky Cola herbal extracts, its

orange fruity flavour and refresh-

ing bubbles. Sky Mix is available

on the BiH market and comes in

1.5 l and 0.5 l PET bottles, and

0.25 L PS bottles. Our goal is to

continue to develop competitive,

sustainable and innovative produ-

cts that will follow global trends

and meet clients' demands within

our core business.

Describe your company today,

your future plans and the like?

The methodical investments in the

modernisation, development and

new technology has enabled Sara-

jevski kiseljak to become the lar-

gest and most advanced mineral

water bottling company, and one

of the leaders in the contemporary

business and production in Bosnia

and Herzegovina. We're planning

to continue taking safe steps

along this path.

TOMISLAV SLIŠKOVIĆ

Can you claim that you have

the „MY PRODUCT“, and

you've managed to produce

something new, and unique in

this area (if considered the

state of the country)?

We tend to follow global trends,

and adapt them to our clients'

needs. This is the reason why our

products have taken over the re-

gion. The connection of the consu-

mers with our brands, for insta-

nce, Sarajevski kiseljak, Sky, and

particularly Sensation indicates

that our products follow their life-

styles; our consumers can easily

identify themselves with our pro-

ducts. At the same time, the said

commitment of our consumers is

the greatest recognition of success

achieved. Thus, if this is the crite-

ria, we can certainly say we have

the „MY PRODUCT“.

Finally, I would like to thank our

customers for recognising our on-

going efforts to provide them with

the products especially tailored

according to their taste, and kindly

ask them to follow our work for

we have prepared some new sur-

prises for them in the following

year.

The Interview was taken from the daily

„Dnevni list“


FIC NEWS 2015

F IC NEWS

CDP evaluates transparency and impact

About the CDP Europe

HeidelbergCement has further

improved its reporting on

climate, for which the CDP

(Carbon Disclosure Project)

has proclaimed the company

„Leader in the industry of

energy and materials“ in the

DACH region (Germany, Aus-

tria, Switzerland). By achie-

ving the overall score of 99 A,

HeidelbergCement is one of

the top five companies in this

industry in Germany, Austria

and Switzerland, as well as one

The so-called „Climate Disclo-

sure Score“ is used to measure

reporting transparency and

integrity of a company with

respect to climate change im-

pacts. During 2015, Heidel-

bergCement reached 99 of 100

The CDP Europe is a member of

the global CDP network, an in-

ternational, non-profit organi-

sation providing cities and

companies with the only global

system of measurement and

points and became a member

of the Climate Disclosure Lea-

dership Index – CDLI in the

industry of energy and mate-

rials. Unlike „Climate Disclosu-

re Score“, „Climate Performan-

ce Score“ assesses efficiency

disclosure of vital environmen-

tal information. The CDP has

been working closely with the

major actors on the policy

market, business market and

capital market, including 822

of the top ten companies in the

German DAX index.

of the measures a company

has taken to prevent climate

changes. HeidelbergCement

significantly improved its

business results in 2015 and

reached a very good score of

A-.

institutional investors with

assets amounting to 86 trillion

euros. Thousands of compa-

nies submit their annual clima-

te reports to the CDP. The top

results indicate a high level of

transparency in the disclosure

of the information related to

climate change, thus providing

investors with the relevant

information for assessing cor-

porate responsibility and

readiness to regulate emi-

ssions. In this way, the CDP

motivates companies to pub-

lish their impact on the

environment and natural re-

sources, and to take actions to

reduce them.

HeidelbergCement leading in reporting on climate change impacts

n

14


F IC NEWS 15

n

VSI PREDSTAVLJA

Deloitte has achieved remarkable

success by receiving two prestigious

awards - Central European Transfer

Pricing Firm of the Year and Tax

Firm of the Year 2015. The said

awards were bestowed on Deloitte

in the 11th edition of the European

Tax Awards, organized by a

prominent, London-based magazi-

ne, the International Tax Review

(ITR). Deloitte has been recognized

for its innovative solutions offered to

clients as well as comprehensive

advice in cross-border transactions.

The transfer pricing service line at

Deloitte Central Europe has been

developed since 2002. Today, the

firm is an international network of

highly-qualified experts capable of

resolving the most complex issues

Since its establishment in 1975,

the business group Al-Shiddi ba-

sed in Riyadh has carried out its

business activities in several

sectors: industry, real estate, con-

struction, agriculture, hotel indu-

stry and trade. Although most of

its business activities take place

locally, in the Kingdom of Saudi

Arabia, the Al Shiddi Group also

operates internationally under the

name Al-Shiddi International,

working with real estate and

financing various commercial

activities worldwide, primarily in

the UK and Bosnia and

Herzegovina. The Al Shiddi Group

in Bosnia and Herzegovina has

existed since 2006 and so far has

invested over 300 million in their

projects and implemented the

following: the shopping centre

Sarajevo City Centre, the Hotel

and delivering world-class solutions

to clients. The International Tax

Review is the publisher of prestigious

tax and law materials recognized by

industry experts. Not only does it

present the most important tax

news from around the world but

also analyses focusing on income

and indirect taxes, transfer pricing,

disputes and international taxes.

The leading firms whose calendar

year portfolio includes the most in-

Bristol and is currently building

one of the largest settlements in

Bosnia and Herzegovina, Poljine

Hills.

The Sarajevo City Centre was the

most visited shopping centre in

Bosnia and Herzegovina in 2015,

reaching 6,109,239 visitors. It

covers an area of over 49,000

square metres and disposes of

100 world's most famous shops

with haute couture items, sport

and children's clothing, technology

appliances, more than 20 restau-

rants, cafés and pastry shops

offering delicacies, Bosnian,

Turkish, Arabic, Italian, Tunisian,

Japanese, and Chinese cuisine.

The perfect location made it possi-

ble to locate the shopping centre

in the heart of the business zone,

surrounded by banks, the

government building, and dozens

of international and local compa-

nies. This was the reason for the

construction of an office tower as

part of the SCC. This unique office

building covers an area of over

novative, breakthrough and valuable

projects are nominated for ITR

awards. The entity's work between

January and December 2014 was

taken into consideration. Winners

were selected on the basis of

examples of the best work sub-

mitted directly by the candidates.

The submissions were reviewed by

ITR editorial staff, researching the

market, clients' and professionals'

opinions for several months.

Deloitte Central Europe – the Tax Firm of the Year and the Transfer Pricing Firm of the Year 2015

2015 was successful business year for Al Shiddi Group


FIC NEWS 2015

F IC NEWS

O CDP-u Evropa

6,000 square meters of office

space equipped by the latest

standards, along with conference

rooms. Within the SCC is also a

five-star hotel, whose opening is

planned for late 2016.

The Grand Hotel Bristol Sarajevo

is a four-star modern business

hotel reopened in 2011 as a

member of the Al Shiddi Group.

The hotel offers 186 luxuriously

furnished rooms, of which 98

superior rooms, 72 deluxe rooms,

16 suits equipped by the word's

highest standards. In 2015 the

hotel recorded an increase in

In November 2015, Deloitte BiH,

Croatia and Slovenia, in coopera-

tion with the European Bank for

Reconstruction and Development

(EBRD) and Raiffeisenbank Austria

d.d. Zagreb (RBA), at the Cong-

ress Centre Forum Zagreb orga-

nised a regional conference entit-

led "Contributing to corporate and

entrepreneurial success". At the

Conference, Deloitte firstly presen-

ted survey on the position of wo-

men in ten countries of the Euro-

pean Union. Afterwards personal

stories of charismatic individuals

cond phase by 2018. As being

designated as a settlement to shift

level of life quality, it's the first

residential settlement comprising

211 villas and 280 residential

units. The settlement Poljine Hills

is situated on the sunny, south-

west side of the city in one of the

most beautiful parts of Sarajevo,

surrounded by nature, fresh air

and a magnificent view. The first

phase of the project includes

seven different types of villas

ranging from 195 m² to 334 m²

constructed on plots of 400, 600

and 800 m². The second phase of

the project consists of 10

residential buildings containing

260 apartments, 20 exclusive

offices and 280 parking spaces

offering a variety of types and

sizes of apartments and spacious

penthouses ranging from 195 m2

to 280 m². In December last year,

a sample house fully completed

was presented so the prospective

buyers would be able to see one

of the models of the villas offered

in the project.

For the progress of the project

construction, please visit the

following link:

www.poljinehills.com

The main tasks of this one-day

conference were connecting small

and medium-sized entrepreneurs,

corporations and all other interes-

ted parties, and highlighting the

role of women's entrepreneurship

in creating new jobs and pointing

to a new kind of support that will

help to achieve the objectives.

overnight stays and received

some of the world-famous awards

for its work; TripAdvisor Certificate

of Excellence in 2015, an award

evaluating levels and quality of

services given to the objects which

continuously receive positive re-

views from their guests on the

web portal TripAdvisor. In 2015

the Hotel Bristol Sarajevo was

awarded Recommended on Holi-

dayCheck 2015, recognition of the

leading independent web portal

for online reviews. In the view of

guests and the acknowledgment

of the web portal Hotels.com, the

Hotel Bristol Sarajevo has received

a rating of 4.7 (out of 5) and

declared excellent.

Poljine Hills is a project initiated in

late 2014, whose first phase

completion is expected by the end

of the current year, and the se-

has been presented which was

followed by organisation of three

panels on which successful female

entrepreneurs and managers

from Croatian, Bosnia and Herze-

govina and Slovenia shared their

views and experiences related to

the status of women in different

business areas. The conclusion of

the conference is that the long-

term success of the region (Croa-

tia, Bosnia and Herzegovina and

Slovenia) in the coming period will

largely depend on supporting the

entrepreneurial skills of women.

n

n

SheXO klub – regional conference

16


http://www.poljinehills.com

F IC NEWS 17

USVOJENA LEGISLATIVA U BIH* osigurao: Wolf Theiss

OFFICIAL GAZETTE OF

BOSNIA AND HERZEGOVINA

Parliamentary Assembly of

Bosnia and Herzegovina

ź BiH Customs Policy Law (58/15)

ź Law on Amendments to the

Law on Residence of BiH Citi-

zens (58/15)


Misdemeanors Law (81/15)

ź Aliens Law (88/15)


Consumer Protection Law (88/

15)

Council of Ministers of Bosnia

and Herzegovina

ź Decision on the Common Procu-

rement Vocabulary (54/15)

ź Decision on suspension of licen-

ses for international trade in ele-

ctricity (55/15)

ź Directive on publication of basic

terms of laws and amendments

to laws (56/15)

ź Decision on temporary suspen-

sion and reduction in tariff rates

on the importation of certain

goods until 31/12/2016 (101/

15)

ź Decision on establishment of

Customs Tariffs in 2016 (102/

15)

Ministry of Finance and Trea-

sury

ź Directive amending the Decree

on payment accounts for admi-

nistrative taxes (12/15)

Indirect taxation administra-

tion

ź Decision amending the Decision

on diesel-fuel quantities not su-

bject to toll payment in 2015

(48/15)

ź Ordinance enforcing the Perso-

nal Data Protection Law at the

Indirect Taxation Administration

(61/15)

ź Directive amending the Direc-

tive on simplified customs pro-

cedures by invoice (77/15)


tive on simplified customs pro-

cedure related to the goods to

be transferred by pipelines and

power lines (81/15)


tive on VAT return to foreign

nationals (82/15)

ź Decision on compensatory in-

terest rates for the period 01/

01/2016 – 30/06/2016 (94/15)

ź Decision on establishing special

and minimum excise duties on

cigarettes and excise duty

amounts on smoking tobacco

in 2016 (94/15)

Agency for medicinal products

and medical devices of Bosnia

and Herzegovina

ź List of the medicinal products

authorised for placing on the

BiH market (79/15)


authorised (by a renewed pro-

cedure) for placing on the BiH

market (79/15)


whose license for placing on

the BiH market has been revo-

ked (79/15)

State electricity regulatory

agency

ź Decision amending the Decisi-

on on the probation period of

the application of implementing

rules and procedures for provi-

sion of ancillary services and

power system balance (48/15)

ź Decision on approval of rules

for allocation of cross-border

transmission capacities (92/15)

ź Decision amending the Decisi-

on on establishing coefficients

and sluice-gate prices for anci-

llary services (92/15)

ź Decision on establishing stan-

dard terms and conditions for

international electricity trade li-

censing (98/15)

ź Ordinace amending the License

Ordinance (98/15)

Civil aviation directorate of


ź Ordinance on continuing air-

worthiness of aircrafts and avi-

ation products, parts, and devi-

ces, and approval of organiza-

tions and staff involved in the

aviation operations excluded

from the EASA Regulations

(93/15)

ź Ordinance on flight approval

(95/15)

ź Ordinance on terms and man-

ners of inspection of foreign

aircrafts controlled by other

countries, with intention to land

at the BiH airports (96/15)

ź Ordinance on establishing ge-

neral and specific requirements

for provision of air navigation

services (101/15)

ź Ordinance amending the Air-

ports Ordinance (101/15)

ź Correction of the Flights App-

roval Ordinance (101/15)

Regulatory communications

agency of Bosnia and Herze-

govina

ź Regulation amending the Re-

gulation 59/2011 on license

fees in radio communications

in BiH (94/15)

Insurance agency of Bosnia

and Herzegovina

ź Insurance market statistics in

BiH in 2014 (94/15)

State regulatory agency for

radiation and nuclear safety

ź Ordinance on radioactive waste

management (68/15)

ADOPTED LEGISLATION REVIEW* provided by: Wolf Theiss

FIC NEWS 2015

F IC NEWS


OFFICIAL GAZETTE OF

FEDERATION OF BOSNIA

AND HERZEGOVINA

Parliament of Federation of


ź Law on Internal Payment Sys-

tem (48/15)

ź Law on Games of Chance (48/

15)

ź Law on Acquisition of Joint-

stock Companies (77/15)


Foreign Investments Law (77/

15)


Cheques Law (77/15)

ź Public Enterprises Law (81/15)


Law on Default Interest Rates

for Public Revenues (86/15)


Securities Market Law (86/15)


Law on the Common System

of Registration, Control and

Payment of Contributions (86/

15)


Law on Establishment and

Implementation of Citizens Cla-

ims in Privatization Procedures

(86/15)


Contributions Law (91/15)


Law on Tax Administration of

FBiH (91/15)


Law on the Conditions and

Methods of Woodcutting Per-

formance Activities (91/15)

ź Decision on approval of the

Statute amending the Statute

of the Energy Regulatory Com-

mission in BiH (91/15)


Electricity Law (94/15)


Civil Procedure Law (98/15)

sing accounts at authorised or-

ganisations for internal pay-

ment operations (83/15)

ź Directive on methods and pro-

cedures of execution of forced

collection orders through acco-

unts with authorised organisa-

tions (83/15)

ź Directive on record keeping

and record contents of corpo-

rate accounts with authorised

organisations (83/15)

ź Ordinance amending the Ordi-

nance on the contents, met-

hods and form of submission of

mandatory records and forms

for drafting of daily income sta-

tements and monthly fees pay-

ment for games of chance (91/

15)


nance on the methods of cal-

culation and contributions pay-

ment (98/15)


nance on the methods of public

budget revenues and extra-

budgetary funds in the Federa-

tion of Bosnia and Herzegovina

(102/15)

Federal Ministry of energy,

mining and industry


nance on takeover and applica-

tion of technical regulations in

the field of design, construc-

tion, commissioning, exploita-

tion and maintenance of natu-

ral gas facilities and installa-

tions (83/15)

Federal Ministry of health


nance on specific conditions of

space, equipment and person-

nel for the establishment and

performance of healthcare ser-

vices at healthcare institutions

(83/15)

Government of Federation of


ź Decision on slot machines ty-

pes and performances in the

slot machines system for ga-

mes of chance (67/15)

ź Regulation on the conditions

and methods of cash payment

(72/15)


nance on determining the qua-

lity of liquid petroleum fuels

(69/15)

ź Regulation on the methods and

procedures of implementation

of protection measures, trans-

port and transfer of cash, secu-

rities and valuables (76/15)

ź Decision on approval of natural

fuel wholesale prices (77/15)

ź Regulation on employment

promotion (95/15)


FBIH Revised Action Plan for

implementation of the BiH Re-

form Agenda (95/15)

ź BiH Lottery Statute (95/15)

ź Bases for calculating contri-

butions of certain tax payers in

2016 (96/15)

ź Decision on extension of colle-

ctive agreements application

(97/15)

ź Regulation amending the Re-

gulation on construction site

planning, mandatory construc-

tion site documents and const-

ruction actors (101/15)


for discharging wastewater into

the environment or public se-

werage systems (101/15)

Federal Ministry of Justice


and methods for storage of

material evidence

Federal Ministry of Finance

ź Directive on opening and clo-

18

VS I NOVOST I 19



nance on the conditions on the

type of completed medical

school to be meet by persons

applying for healthcare institu-

tion director (83/15)

Federal Ministry of trade

ź Ordinance on the form, content

and method of keeping trading

books (91/15)

Federal Ministry of agricul-

ture, water management and

forestry

ź Ordinance on the minimum

technical and technological, hu-

man resources conditions for

production in facilities for fruit

and vegetable processing (102/

15)


nance on the content and

method of keeping viticulture

and viniculture register (102/

15)


nance on the minimum tech-

nical and technological, and

human resources conditions for

winemaking and other wine

and grape related products

(102/15)

Securities commission of Fe-

deration of Bosnia and Herze-

govina


nance on the conditions of ma-

nagement companies opera-

tions (83/15)


nance on Mediation in Securi-

ties Transactions (83/15)


nance on authorised entities on

the securities market (96/15)

ź Ordinance amending to the Or-

dinance on admissible invest-

ments and investment restric-

tions of closed-end investment

funds with public offerings (96/

15)

ź Ordinance on the procedures of

joint-stock companies acqui-

sition 101/15)

Energy regulatory commission

in Federation of Bosnia and

Herzegovina


nance on mandatory shares and

acquisition of the electricity ge-

nerated from renewable energy

resouces (82/15)

ź Decision on establishing perce-

ntages of electricity mandatory

shares in 2016 (96/15)


Ordinance on the procedures of

application for issuing electricity

guarantees of origin (101/ 15)

Federal administration for geo-

detic and real property affairs

ź Directive on records of issued

survey and cadastral data, sur-

vey and cadastral services and

collected fees (82/15)

Railway regulatory board of

Federation of Bosnia and Her-

zegovina

ź Traffic Ordinance (100/15)

Banking agency of Federation

of Bosnia and Herzegovina

ź Rules amending the Rules on

the procedures of the BiH ban-

king sector Ombudsman (93/

15)


on banks procedures with inac-

tive accounts (98/15)

Agency for privatisation in Fe-

deration of Bosnia and Herze-

govina

ź Statute of the Agency for Privati-

sation in FBiH (revised text) (76/15)

ź Decision amending the Deci-

sion on immediate preparation

and implementation of small-

scale privatisation (95/15)

Registry of securities of Fede-

ration of Bosnia and Herzego-

vina

ź Rules of the Registry of Securi-

ties of FBiH (94/15)

Insurance supervisory agency

of Federation of Bosnia and

Herzegovina

ź Ordinance on supervision (99/

15)

Operator for renewable ener-

gy sources and efficient coge-

neration

ź Decision on dynamics of sub-

mission of data used for deter-

mining amounts of energy ac-

quired from RES (98/15)

OFFICIAL GAZETTE OF

REPUBLIKA SRPSKA

National assembly of


Higher Education Law (44/15)


Law on Courts in RS (44/15)


Proprietary Rights Law (60/15)

ź Income Tax Law (60/15)


Expropriation Law (79/15)


Environmental Protection Law

(79/15)


Law on Renewable Energy

Sources and Efficient Cogene-

ration (79/15)

ź Advocacy Law (80/15)

ź Spirit Drinks Law (81/15)


Investment Funds Law (82/15)

FIC NEWS 2015

F IC NEWS


ź Law on Property Transfer Tax

(91/15)

ź Profit Tax Law (94/15)

ź Law on Deferred Payment of

Tax Liabilities (94/15)

ź Accounting and Auditing Law

(94/15)

ź Fiscal Accountability Law (94/

15)


Law on Common Financial Sta-

tements Registry (94/15)


Administrative Inspection Law

(94/15)

ź Law on Electronic Documents

of RS (106/15)

ź Law on Electronic Signatures of

RS (106/15)


Spatial Planning and Constru-

ction Law (106/15)


Waste Management (106/15)


Trade Law (106/15)

ź Law on Special Solidarity Con-

tribution (110/15)


Law on Taxes on the Use, Po-

ssession and Carrying of Goods

(110/15)

Government of RS

ź Regulation on the conditions of

opening foreign exchange

account abroad (92/15)

ź Decision on adoption of amen-

dments to the RS Action Plan

for Renewable Energy Sources

(111/15)

ź Decision on approval of the Or-

dinance amending the Ordi-

nance on the rates of conce-

ssions fees and bank guaran-

tees in the field of electrical en-

gineering, energy sources,

mining and geology (111/15)

ź

Ministry of spatial planning, ci-

vil engineering and ecology of

RS

ź Ordinance on the method of

storage, packing and labeling of

hazardous waste (49/15)


nance on the measures of air

pollution prevention and redu-

ction and air quality improve-

ment (51/15)

Securities commission of RS

ź Ordinance amending the ordi-

nance on performing custody

operations (105/15)

ź Ordinance on the conditions

and procedure for licensing to

perform activities of superviso-

ry board members of closed-

end investment funds (105/15)

ź Ordinance on the conditions

and procedure for licensing to

perform activities of board of

directors members of invest-

ment management companies

(105/15)

ź Ordinance on licensing for qua-

lified participation in invest-

ment management companies

(105/15)

ź Ordinance on the operations of

investment management com-

panies (105/15)

ź Ordinance on the procedure

and types of operations to be

transferred to third parties by

management companies and

the method of transfer of in-

vestment management opera-

tions to another management

companies (105/15)

ź Ordinance on licensing for ope-

rations and status changes of

investment management com-

panies (105/15)

ź Ordinance on the conversion of

closed-end investment funds

(108/15)

purchase and sales of securities

(111/15)

Insurance agency of Republika

Srpska

ź Decision on the use of certain

assets covering technical reser-

ves of insurance companies

(87/15)


nance on protection of insu-

rance services beneficiaries and

the Ombudsman in insurance

(87/15)

ź Directive on the form and con-

tent of reports on analytical da-

ta of insurance companies in-

vestment (87/15)

ź Ordinance on insurance com-

panies management system

(107/15)

Ministry of finance

ź Ordinance on the content and

form of financial statements for

companies, cooperatives, other

legal entities and entrepre-

neurs (49/15)

ź Ordinance on the conditions,

methods and procedures of

exercising the rights of taxation

of foreign sources incomes

(98/15)

ź Ordinance on the content and

method of keeping books and

records and rules of adjusting

self-employment incomes and

expenses (98/15)

ź Ordinance on the method of

establishing market values of

transactions between connec-

ted parties (98/15)

ź Ordinance on the type and

amount of expenses necessary

for acquiring profits based on

copyrights, rights related to co-

pyrights and industrial property

rights (98/15)

20

F IC NEWS 21

n


Deloitte Tax Alert

ź Ordinance on establishing va-

lues of investment funds assets

and calculation of net asset

values per share or stake of in-

vestments funds (108/15)

ź Ordinance on the content,

dead-lines and form of reports

of investment funds, inve-

stment management compa-

nies and depositary banks

(108/15)

ź Ordinance on the capital ade-

quacy of investment manage-

ment companies (108/15)

Banking agency of RS


sion on the conditions and pro-

cedure of issuing licenses for

performing microcredit opera-

tions to micro-credit organisa-

tions, organisational units of

microcredit organisations in

FBiH, Brčko District and foreign

microcredit organisations in RS

(104/15)



cedure of issuing status change

licenses to microcredit organi-

sations.



Securities Acquisition and

Takeover Act

The Securities Acquisition and Ta-

keover Act was published in the

“Official Gazette of FBiH”, number

77/15, on the 07 October 2015.

The Securities Acquisition and Ta-

keover Act enters into force on 15

October 2015, whereby certain

provisions of this Act will apply only

from the 1 January 2016.

By entrance into force of this Act,

the Securities Acquisition and Ta-

keover Act ("Official Gazette of

cedure of granting the au-

thorisations to perform activities

of savings and loan associations,

approvals to articles of associa-

tion and appointment of exter-

nal auditors at savings and loan

associations (104/15)


on the conditions and procedure

of revocation of savings and loan

associations work permits (104/

15)


on control and supervision of le-

ssors (104/15)


on the minimum standards for

market risk management in

banks (107/15)

OFFICIAL GAZETTE OF

SARAJEVO CANTON

Assembly of Sarajevo canton

ź Law on Apartment Lease (24/15)

ź Law on Support to Small Busi-

ness Development (29/15)


Coat of Arms and Flag Law (36/

15)


Seal Law (36/15)

ź Law on Amendments to the Law

FBiH", no. 7/06) shall cease to

apply.

Misdemeanor Act Amendments

The Misdemeanour Act Amendme-

nts were published in the “Official

Gazette of BiH”, number 81/15, da-

ted 19 October 2015.

Among other changes, amendme-

nts prescribe that, if respective per-

son accepts responsibility for mis-

demeanour and pays 50% of the

fine within eight days from receipt

of misdemeanour warrant, that

on Takeover and Amendments

to the Law on Business Premises

Lease (40/15)


Communal Activities (40/15)


on legalisation of structures with-

out building permits and tempo-

rary structures (51/ 15)

Government of Sarajevo can-

ton

ź Decision on the positive, hospital

and pharmaceutical list of medi-

cines in Sarajevo Canton (39/15)


on the positive, hospital and

pharmaceutical list of medicines

(41/15)


on the positive, hospital and

pharmaceutical list of medicines

(44/15)

ź Decision on implementation of

the Business Climate Improve-

ment Project in Sarajevo Can-

ton (50/15)

ź

Ministry of finance of Sarajevo

canton

ź Ordinance on establishing and

keeping the Concessions Regi-

ster (39/15)

person is exempt from paying of

the other 50% of the fine.

In case a person found to be

guilty of misdemeanour with

respect to in-direct taxes avoids

paying the fine or avoids collection

measures related to countervalue

of goods imposed by the court,

amendments also prescribe that

the court will request from the

Indirect Taxation Authority to

conduct enforced collection proce-

dure based on the Enforced Col-

lection of Indirect Taxes Procedure

Act („Off. Gaze-tte BiH“, no. 89/

* Laws and by-laws relevant to the foreign investors in BiH for the period July – December 2015.


FIC NEWS 2015

F IC NEWS

Deloitte Tax Alert

05 and 64/11).

The Act entered into force on the

27 October 2015.

The Amendments of the Rule-

book on Calculation and Pay-

ments of Social Security Con-

tributions

The Amendments of the Rulebook

on Calculation and Payments of

Social Security Contributions was

published in the “Official Gazette

of FBiH”, number 98/15, as of 23

December 2015. The Rulebook

entered into force on 24 Decem-

ber 2015. The Rulebook is harmo-

nized with the Amendments of the

Social Security Contributions Act,

which was published in the

”Official Gazette of FBiH”, number

91/15.7

The following forms were amended:

ź Form 2001-A – Specification on

salary payment to an employee

with residence in RS and BD

BiH, who is in an employment

relationship with legal entities

ź BiH political leaders an-

nounced the Application for EU

membership will be submitted

in 2016

ź The divergent paths for the Fed

and the European Central Bank

(ECB)

ź GDP expanded rapidly in

second quarter of 2015 –

positive but softer GDP dyna-

mics expected in H2 2015

rulebooks were published in the

“Official Gazette of RS”, number

98/15:

ź Rulebook on Conditions,

Method and Procedure of Exer-

cising the Right on Taxation of

Foreign Sources of Income;

ź Rulebook on Content and

Method of Record Keeping and

Rules on Harmonization of In-

dependent Business Activity

Generated Income and Expen-

ses;

ź Rulebook on Method of Deter-

mining Market Value of Trans-

actions Between Related Par-

ties and

ź Rulebook on Type and Amount

of Expenses Necessary for Ge-

nerating Income from Copy-

right, Copyright Related Rights

and Industrial Property Right.

The Rulebooks entered into force

on 9 December 2015.

ź Subdued lending continues but

the overall profitability impro-

ves further

ź Telekom Srpske on the path to

become a market leader in

both sales and achieved profit

ź Expected GDP expansion at

3.0% in 2016, following a

2.0% growth in 2015

and natural persons and

ź Form 2002 – Specification on

contribution payment of entre-

preneurs.

New Form 2002-A – Specification

on contribution payment of

entrepreneurs with residence in

RS and BDBiH who performs an

individual business activity in FBiH

was published.

FBiH Foreign Investments Act

Amendments

The Foreign Investments Act

Amendments were published in

the “Official Gazette of FBiH”,

number 77/15, on the 7 October

2015.

The Act entered into force on the

7 October 2015.

Rulebooks on Personal In-

come Tax in Republika Srpska

On 1 December 2015 following

ź Imports of goods in negative

area in 2015 – positive trend in

exports continues

ź B&H is facing third consecutive

year of negative Consumer

Price Index in 2015

ź Primary debt issues exceeded

planned amounts in 2015

ź Overall market performance

improved in 2015

22

ECONOMIC REVIEW FOR BiH

Highlights

n

n

F IC NEWS 23


ECONOMIC REVIEW FOR BiH

FIC NEWS 2015

Bosna i Hercegovina 2011 2012 2013 2014 2015e 2016f 2017f

Nominalni BDP (EUR mlrd) 13,4 13,4 13,7 13,9 14,3 15,1 16,1

Realni BDP (% na godišnjoj razini) 0,9 -0,9 2,4 1,0 2,0 3,0 3,5

BDP po stanovniku (EUR) 3445 3448 3525 3600 3713 3929 4182

BDP po stanovniku (EUR po paritetu kupovne

moći) 7000 7100 7200 7200 7300 7400 9150

Potrošnja po kućanstvu (realno, % na godišnjoj

razini) 0,0 -0,8 0,0 2,2 2,0 2,5 3,0

Bruto investicije u fiksni kapital (stvarni % na

godišnjoj razini) 14,6 4,1 -2,8 5,9 4,0 7,5 7,2

Industrijska proizvodnja (% na godišnjoj razini) 5,6 -5,2 6,7 0,1 4,0 6,0 8,5

Proizvođačke cijene (prosj,% na godišnjoj razini) 3,8 1,3 -2,2 -0,2 0,5 1,5 2,5

Potrošačke cijene (prosj,% na godišnjoj razini) 3,7 2,1 -0,1 -0,9 -0,5 1,0 2,0

Prosječne bruto plaće (LCY,% na godišnjoj razini) 6,8 2,2 -0,5 0,3 0,0 3,0 5,0

Stopa nezaposlenosti (prosj,%) 27,6 28,0 27,5 27,5 27,0 25,0 22,5

Opći proračunski saldo (% BDP) -1,3 -2,0 -2,2 -2,1 -2,5 -2,0 -1,0

Javni dug (u% BDP) 38,1 40,0 39,0 42,2 44,6 45,0 43,0

Trgovinska bilanca (% BDP) -27,9 -28,2 -25,4 -27,6 -25,0 -25,0 -25,5

Tekući račun platne bilance (% BDP) -9,6 -9,1 -5,9 -7,6 -7,0 -7,6 -8,1

Neto inozemna izravna ulaganja (% BDP) 2,6 2,0 1,4 2,6 3,2 4,0 6,8

Službene devizne rezerve (EUR mlrd) 3,3 3,3 3,6 4,0 4,1 4,3 4,7

Bruto inozemni dug (% BDP) 65,7 62,0 61,4 63,1 62,7 62,7 59,1

EUR / LCY (prosj) 1,96 1,96 1,96 1,96 1,96 1,96 1,96

USD / LCY (prosj) 1,41 1,52 1,47 1,47 1,76 1,92 1,78

F IC NEWS 24


EVENTS WITH FIC MEMBERS PRESENCE

FIC NEWS 2015

F IC NEWS

EVENTS WITH FIC MEMBERS PRESENCE

25

F IC NEWS 26


FIC NEWS 2015

FIC members