Granice oporezivanja prihoda iz radnog odnosa: obligacioni odnosi i ,,veliki doprinosi”
The Limits of Taxation of Income from Employment: Obligational Relationships and “Major Contributions”

Summary/Abstract: This paper examines the tax-law treatment of obligation-law relationships between legal entities and their employees or directors in the practice of the competent authorities of the Federation of Bosnia and Herzegovina, with particular emphasis on the obligation to calculate and pay socalled “full social security contributions”. The research is motivated by the practice of tax authorities and courts to classify certain payments to employees as income from dependent employment without prior determination of their actual legal nature.The analysis is based on the relevant provisions of the Law on Obligations, the Labour Law, the Law on Contributions and the Personal Income Tax Law, applying the principle of material truth and the doctrine of substance over form. Special attention is given to distinguishing between employment-law and obligation-law relationships and to the conditions for the emergence of an obligation to calculate contributions based on salary. The paper concludes that the automatic taxation of such payments lacks statutory grounds and results in violations of the principles of legality, legal certainty and the right to property.

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