New tax rules to help start-ups

For some time now, Serbia has been trying to keep a skilled workforce in the country through its tax policy.

The new tax rules, which will apply starting this year, are slowly paving the way for a shift towards the knowledge-based economy with innovative start-ups starting to feel the effects.

As of 1 March, thanks to recent legislative changes, tax breaks will continue to apply to workers engaged in research and development. Employers will pay up to 70% less in taxes and contributions on their salaries. “The state will cover their pension and health insurance contributions,” explains Svetislav Kostić, a tax expert and professor at the Faculty of Law.

“This is an extremely significant relief. From the first day of March until the end of next year, employers will be able to hire unemployed people and be eligible for tax relief. For instance, if they give the new worker, preferably a young person, a salary of up to 76,500 dinars gross, they will be eligible to 70% tax and pension and health contribution exemption by the end of 2024. Therefore, a salary of 50,000 dinars will cost the employer as much as a minimum wage under normal conditions. This will allow employers to give young graduates slightly higher salaries for two or three years, thus contributing to the prevention of brain drain,” Professor Kostić adds.

According to experts, these changes will also help the start-up sector. Tax relief also applies to founders of such companies, i.e. is applicable to salaries of up to 150,000 dinars gross. The measure is a general incentive and is not only intended for new startups. It will also provide them with new sources of financing.

„The financial market is bank-centric and companies are subject to fluctuations in the credit cycle. After the mortgage crisis, lending stopped. This means that companies would benefit from using alternative financing channels,“ banks say.

(Vecernje Novosti, 10.01.2022)

https://www.novosti.rs/vesti/ekonomija/1074164/manji-namet-plate-nova-poreska-pravila-vec-1-marta-olaksace-poslovanje-startap-preduzecima

This post is also available in: Italiano

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