Amendments to Law on Personal Income Tax adopted – Non-taxable salary components to amount to RSD 15,000

The National Assembly of Serbia adopted amendments to the Law on Personal Income Tax on December 14. The amendments envisage certain exemptions for the corporate sector.

The law envisages new tax exemptions for employing young people starting their own business through exemption from paying taxes and mandatory social insurance contributions on salaries in the first years of business activities (the year of the foundation and the next one).

The aim is to stimulate entrepreneurship and eliminate one of the key obstacles to starting and running a business through tax exemptions.

The Government of Serbia believes that the measure will lead to a reduction in the number of employees doing business within the gray economy, stimulate the entrepreneurial spirit and the involvement of the young in business activities, without a real burden on the budget.

The law also envisages the extension of the existing tax exemptions for the employment of new persons, which expire on December 31, 2017.

The amendments envisage an increase of the non-taxable salary components from RSD 11,790 to 15,000 beginning with January 1, 2018.

The Law on Amendments to the Law on Legal Entities Income Tax and the Law on Amendments to the Law on Mandatory Social Insurance Contributions have also been adopted.

Narodna skupština Republike Srbije

National Assembly of Serbia

Law on Personal Income Tax

amendments to the Law on Personal Income Tax

personal income

Law on Amendments to the Law on Legal Entities Income Tax

Law on Amendments to the Law on Mandatory Social Insurance Contributions

Law on Mandatory Social Insurance Contributions

mandatory social insurance