Serbian Finance Minister, Sinisa Mali has announced that unemployment contribution, which employer is required to make on an employee’s salary at the rate of 0.75%, will be abolished from January 1st, 2019, whereby the total tax and contribution burden on salaries is reduced from 63% to 62%.
“By doing this, we are sending a message to business people and investors that we are striving for salary taxes and contributions to be as low as possible, for us to be as competitive as possible and to hence bolster new jobs in Serbia”, Mali said at a press conference.
A new draft law on fees will be written by the end of October, under the supervision of the IMF, and certain parafiscal charges will be abolished as well.
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The third measure pertains to increasing competitiveness, rather on applying a new way of calculating the fixed assets tax depreciation, whereby the depreciation calculation will be made easier.
“ Our aim is to encourage and motivate investors to invest in fixed assets more from 2019, to procure new technologies and machines, in order to help the economy grow”, the minister said and announced that the 2019 draft budget will envisage public investments of RSD 208 billion, an all-time high and 25 billion more than in 2018.
Mali also announced incentives for innovative technologies, which will be defined by the end of October.
“In addition to incentives for the economy, we will also adopt a package of stimulating measures for innovative activities, which we will present in late October, and which will come into effect on January 1st , 2019”, the minister announced.
He pointed out that the process of the modernization and the transformation of the Tax Administration, which is another priority, had started and that it was going well.
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