Finance Minister Sinisa Mali said that this set of tax laws would contribute to further growth of the economy and job creation.
National Assembly lawmakers passed a set of tax laws on December 6th that is supposed to have a significant relief for the economy, as well as a reduction in the burden on wages.
– Last year, we reduced our payroll tax from 63 percent to 62 percent, and from next year it will be 61 percent, said Mali. “From year to year, we reduce the tax burden on wages to encourage new employment and pay increases. The cost to the state is 13.1 billion serbian dinars, so we are in some way giving up these revenues in order to keep more to the economy, precisely in order to increase salaries, employ new people and invest more. It is a strategy that we will not give up in the future.
The Minister of Finance pointed out that this burden is being reduced thanks to an increase in the non-taxable portion of earnings and a decrease in the contribution rate for PIO.
The law, according to the minister, contains tax incentives for new employment, which stimulates employers, who will have an interest and desire to hire young people who have recently completed their education, as well as all those who were not employed in 2019. Incentives are contained in the adopted Law on Personal Income Tax and the Law on Contributions for Compulsory Social Security.
For wages paid from January 1, 2020 to December 31, 2020, an allowance of 70 percent of payroll taxes and 100 percent of PIO contributions is provided. By December 31, 2021, a benefit of 65 percent of payroll taxes and 95 percent of PIO contributions, and by December 31, 2022, a benefit of 60 percent of payroll taxes and 85 percent of PIO contributions.
Reliefs in the form of a 70% reduction in the tax base and contributions relate to newly arrived persons or returnees from abroad, who are thus encouraged to stay in our country.
An important change is that the companies that carry out the innovation activity are given an incentive in the form of tax exemption and contribution to the salaries of the founders employed in such company up to the amount of 150,000 dinars in earnings, writes Alo.
