How Serbia encourages investment in innovation

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Today, Prime Minister Ana Brnabic conveyed to the businessmen of Kragujevac what the state’s measures are to encourage innovation and which, as she said, will position Serbia in a completely different way on the economic map of the world.
Ana Brnabic stated that one of the measures was the reduction of the profit tax generated from the income of intellectual property that was developed or mostly developed in Serbia by 15%.
According to her, that measure has been in circulation since January 1, 2018, and one of the reasons why development companies are moving their development centers to Serbia.
Another measure, which, as he says, can go “side by side” with the first, and it doesn’t have to be, is to reduce the tax base.
“If you have invested 10 euros in research and development, we calculate that you have invested 20 euros and we are reducing the tax base so that you practically pay less tax,” said Brnabic.
She added that the first two measures can be combined and that the tax should be practically zero percent, stating that no country has that.
Also, from January 1, 2018, a “tax credit of 30 percent” was introduced for investing in start-up companies and innovative businesses.
“If your company invests in some younger, start-up companies, innovative companies, you have a 30 percent tax deduction and we hope that this will generate that instead of the economy recognizing the value of innovative companies,” the Prime Minister added.
She also reminded of the tax reliefs for the employment of returnees, which concern the exemption of 70% of taxes and contributions on salaries in the first five years.
There are also tax reliefs for the employment of foreigners, said Brnabic, adding that the government was trying to make Serbia the most competitive country in Europe in terms of investing in innovations and intellectual property.
“We continue to think about how to support employment more. The National Employment Service must be much more proactive, it must not be strict and inflexible,” the Prime Minister said, RTS reports.

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