FISCAL COUNCIL: Potential reduction of salary taxes and contributions by 2-3.5% in 2018

Salary taxes and contributions might be reduced by 2-3.5% in 2018, which would be another measure for stimulating the economic growth, along with a growth of public investments, the Fiscal Council believes.

According to the estimates of the Fiscal Council, which presented the fiscal trends in 2017 and a proposition of policies for the next year on Friday, September 29, 2017, the budget space of RSD 15 billion enables the lowering of salary taxes and contributions from 64% to 62%.

Vladimir Vuckovic of the Fiscal Council said that a bigger budget space of RSD 25 billion would enable the lowering of salary taxes and contributions to 60.5%.

The Fiscal Council estimates that salary taxes and contributions might be lowered through an increase of the non-taxable salary components and a lowering of the unemployment and healthcare contributions.

They estimate that it is possible to set aside three to five billion dinars for tax exemption of new entrepreneurs in the first 12-18 months of business activities.

They also say that the Tax Administration needs to be modernized in order to maintain good fiscal results and further enhance them.

Fiskalni savet Republike Srbije

Fiscal Council

salary taxes and contributions

lowering of salary taxes and contributions

taxes

contributions

tax

Vladimir Vuckovic

Tax Administration

non taxable salary components

unemployment and healthcare contributions

modernization of Tax Administration

stimulation of economic growth

tax exemption of new entrepreneurs