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In page Republika Srpska:
"Since 2001, Republika Srpska initiated significant reforms in the sector of the tax system, which lowered the tax burden to 28.6%, one of the lowest in the region. The 10% rate of capital gains tax and income tax are among the lowest in Europe and could theoretically stimulate foreign investment, and there are no limits on the amount of earnings. Increasing the number of taxpayers and budgeted incomes, and creating a stable fiscal system, were necessary[according to whom?] for further reforms in the fields of taxation and duties; this area is a priority goal of Republika Srpska authorities. VAT has been introduced in 2006. These tax advantages have led to some companies moving their business to Republika Srpska from the other entity.[2]
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