Tax relief for salaries of persons engaged in research and development

The Rulebook on the conditions and manner of exercising the right to tax exemption based on the salary of employees in research and development, which entered into force on April 16, 2022, has been published. year, according to Article 21i of the Law on Personal Income Tax. According to that article, which has been in force since March 1, 2022. Employer – a legal entity, which within its activities in Serbia conducts research and development, is released from the obligation to pay 70% of calculated and suspended tax from the salary of persons directly engaged in research and development, in proportion to the time such persons prove in the work research. and full-time development.

The right to tax exemption is exercised exclusively on the basis of research and development projects carried out on the territory of Serbia (at least 90% of all employees on research and development, their activities on project implementation are performed on the territory of Serbia). Exceptionally, the project will be considered completed on the territory of Serbia, even if some of its parts are performed outside the territory of Serbia, provided that the relocation of activities is caused by special physical, geographical or natural factors that cannot be provided in Serbia.