Serbia Will Change Tax Legislation

The Serbian authorities have adopted several important changes in labor law. In particular, they affected the employment of the locals. Companies that hire locals from 2020 to 2022 will be able to save up to 70% on payroll taxes. Also, for legal entities in which the Serbs will work, a rate of payments to the social insurance fund equal to 0% will be applied.

Serbia wants to invite innovative startups, and legislative changes will affect this area. For companies of this type, a 0% rate will be applied for payroll taxes, as well as for contributions to the Social Insurance Fund. This benefit applies to organizations with a salary of employees not more than 150,000 dinars. The special regime can be used by startups that will register from March 1 to December 31, 2021. The relief is valid for 3 years.

For qualified specialists who come to work in Serbia, certain benefits are also provided. In particular, the tax base on personal income tax will be reduced by 70%. The special tax regime will work for 5 years. Professionals working under a fixed-term labor agreement or registered as individual entrepreneurs can take advantage of the relief.

Law company Law & Trust offers services for individuals and legal entities who wish to move to Serbia or open their own business in the country. The lawyers of the company will tell you in more detail how to apply special tax regimes, and to which groups of individuals and companies they apply.