Finance Minister Sinisa Mali has said that the British ‘Financial Times’ has put Serbia at the forefront of attracting foreign direct investments.
“The Financial Times ranked Serbia first in attracting foreign direct investments. In the first eight months of this year, we attracted 40% more foreign investments than in the same period last year,” said Mali during his guest appearance at TV Studio B.
The Minister also spoke about the state budget for 2020 and said that, on 20 November, he would submit to the National Parliament 45 draft laws and tax breaks to create an even better business environment in the country.
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“We have before us a series of budget laws that must reduce the burden on businesses in terms of taxes and contributions they pay. Last year, companies paid 63% taxes and contributions on salaries, and we reduced that to 62%. The following year, we will reduce it by another percentage point to 61%,” said Mali.
This will cost the state 13.1 billion dinars in terms of lost revenue, but it will be an incentive to develop the economy further and for companies to invest that money in hiring new staff, increasing wages or buying equipment.
“It is also a very important signal for investors,” said Mali.
Another important innovation, according to the Minister, is that there will be a large number of employment incentives stipulated in the Law on Personal Income Tax.
“For example, if you graduated or finished school in the last six months and you got a job or started a business, you will not pay taxes and contributions on your salary, so the state will not take anything from you just to encourage you to go into business. For companies, however, if the employee comes from abroad, the salary contributions will be only 30% instead of 100%,” said Mali.
“For the third consecutive year, we have increased wages in the public sector; As of 1 January, the so-called Swiss formula will be applied to calculating pensions which entails a 5.4% rise, and will depend on inflation and the average rate of wage growth,” concluded the Finance Minister.
This post is also available in: Italiano