Measures to reduce the tax burden on earnings announced

Through the announced amendments to the Law on Personal Income Tax, it will be proposed to increase the non-taxable amount of earnings from RSD 15,300 to RSD 16,300.

Also, the planned amendments to the Law on Compulsory Social Security Contributions include a reduction of the total pension and disability insurance contribution rate from 26% to 25.5% (this refers to the reduction of employer contribution from 12% to 11.5%)

Incentives have also been announced for citizens who have not stayed in Serbia in the past two years, which would reduce the basis for calculating taxes and contributions by 70% in the next five years if they return and find employment in Serbia.

Also, from 1.1.2020. employers who increase the number of employees and employ persons who have not been employed during 2019 will be exempted from paying 70% of payroll taxes and contributions for social contributions for those persons during 2020, or 65% during 2021 and 60 % during 2022.

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