For foreigners working in Serbia, new tax reliefs are announced

November 28, 2022

The Draft Law on Amendments to the Law on Personal Income Tax was drafted by the Ministry of Finance and released in early November in Serbia. One of the modifications concerns the taxation of citizens who have just migrated to Serbia.

In the future, foreigners and returnees from abroad will only need to meet one requirement in order to qualify for tax benefits, claims tax advisor Zvezdana Pisarevi.

This category includes individuals with specialized education whose professions are in high demand in Serbia due to a lack of domestic workers who fit their work profiles.

Additionally, those who were under 40 at the time of the job contract’s conclusion and had not primarily resided in Serbia for the previous two years are eligible for these tax benefits.

A type of assistance aimed primarily at the IT sector to draw in our people who have worked abroad and are now willing to work in Serbia is the facilitation of jobs for returnees.

The employer has the right to reduce the payroll tax base in the aforementioned situations by 70%, which means that the payroll tax and contributions are calculated on the remaining 30% of the employee’s salary. After the employment agreement with a returning employee or foreign worker is finalized, the employer has five years to take advantage of this tax benefit.

Source: Serbianmonitor.com
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