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    Tax reliefs for business rookies in effect as of today

    Tax reliefs for business beginners in Serbia will be implemented as of today.

    According to amendments to the Law on Income Tax and the Law on Mandatory Social Security Insurance Contributions, adopted in December last year, business beginners will be exempted from payroll taxes and contributions for mandatory social security insurance for a full year. This novelty refers to profit of the founder of entrepreneurial firm and earnings of up to nine newly employed people, who need to be just graduated high school students, students or people listed in records of the National Employment Service.

    The condition for those unemployed, starting their own business, to qualify for tax relief is to be listed in the records of the National Employment Service for more than six months. Employers who founded a firm in a period from commencement of implementation of this law, i.e. from October 1st, 2018 until December 31st, 2020 are eligible for tax reliefs.

    A right to reliefs can be realized by the employer – a newly established legal entity, as well as newly established entrepreneur who is listed in the registry of a competent authority i.e. organization, and has a right to be exempted from paying taxis and contributions on the basis of founder’s earnings, i.e. on the basis of personal earnings of entrepreneur, as well as on the basis of employees’ salaries, for up to nine newly employed persons with whom he concluded an employment contract.

    Izvor: Beta

    Foto: Pixabay

    Piše: B.M.

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