Finance Minister, Dusan Vujovic gave its support to NALED’s initiative for young entrepreneurs to be exempt from paying taxes in the first year of their companies’ operations.
NALED has suggested tax exemptions for young people who have graduated from high school or university six months prior, and for any person that has been registered as unemployed with the National Employment Service longer than six months. The relevant analysis has shown that, if this initiative goes through, at least 8,000 people would receive incentives worth a total of 1.9 billion dinars. This would additionally burden the state budget.
At a meeting of the Task Force for Combating Shadow Economy, Vujovic says that another task force should be formed in order for NALED’s idea to be implemented in 2018.
The minister also said that it was especially important for the relevant regulation to be adopted in order for young entrepreneurs to be exempt from paying local taxes too. The head of NALED’s Fair Competition Council, Goran Pitic reminded that implementing these incentives was one of the key measures stated in the National Programme for Combating Shadow Economy, and added that such measures would bring a series of benefits with the most important one being taking care of our young.
A relevant research, conducted on a sample of hair salons and IT companies, showed that, in order for a person to set up a company, he or she needs to make a one-off payment of between 4,610 and 31,610 dinars. In order to launch a limited liability company, they would need between 10,370 and 57,370 dinars. The monthly taxes for small business owners range from 145,000 to 400,000 dinars.
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