Employers request extension of tax exemptions for new employments

The Serbian Association of Employers has addressed Serbian Finance Minister Sinisa Mali requesting the extension of the validity of Article 45 of the Law on Contributions for Mandatory Social Insurance. This article allows employers to establish working relationships with the unemployed with the recovery of a part of paid contributions for the mandatory wage-based social insurance.

In other words, they want to have their tax exemptions for new employments to be extended.

The validity of the article expires in late December 2019, and employers believe that it was the right to recovery of a part of paid contributions for new employees that largely led to new employments, especially in micro, small and medium companies. These tax exemptions, therefore, benefit employers and the unemployed alike, as the latter were able to find jobs.

The Serbian Association of Employers points out in the memo sent to Mali that “considering the economic situation and the market they operate in, employers expect the validity of the tax incentives for new employments to be extended”.

This issue was also presented by representatives of the Association at a session of the Employment Council, so ministers from the Serbian government are already familiar with their request. The Association expects that employers will still be able to use the said exemptions, which lead to a growth of employment rate in the private sector, and that the Ministry of Finance will continue supporting the growth and development of small and medium companies.

The Serbian Association of Employers says that the lack of this tax incentive would have negative consequences on new employments, especially the employment of people unemployed for a long period of time.

Unija poslodavaca Srbije Beograd

Ministarstvo finansija Republike Srbije

Serbian Association of Employers

Ministry of Finance

Sinisa Mali

Law on Contributions for Mandatory Social Insurance

recovery of a part of paid contributions

exemptions for new employments

tax exemptions

taxes