Serbian entrepreneurs pay 44% of their revenue for taxes

“On the basis of a sample that comprised of small and limited liability companies, we have calculated that an average small business has to pay between 12,145 and 32,892 dinars a month on the account of taxes and contributions, while a limited liability company pays around 14,831 dinars a month”, says a researcher from NALED, Irena Djordjevic.

NALED did the analysis together with the Faculty of Political Sciences. Djordjevic also says that new business owners have to pay between 151,550 and 426,314 dinars in their first year of operations on the account of taxes and contributions, while limited liability companies have to pay between 188,126 and 235,126 dinars. They are obligated to pay these amounts even if they did not make any profit.

The analysis has also shown that high taxation is one of the biggest problems for young entrepreneurs who are want to launch a business, with the income tax and social insurance tax being the biggest burden.

“If we are talking about small business owners in Serbia, 44% of their overall revenue goes towards taxes and contributions, while in Germany, this percentage is twice lower, i.e. around 21%”, Djordjevic underlines.

NALED did launch an initiative, backed by the Ministry of Finance, to exempt all young entrepreneurs (who have graduated high school or college six months prior to launching their business) and unemployed people registered with the National Employment Service for more than six months, to be exempt from paying taxes and contributions in the first year of operations of their companies.

Djordjevic points out that this initiative would be applicable only to micro companies, i.e. those that have up to 9 employees, and will be a one-off measure. If a person opens several companies, they will be exempt from paying taxes for only one of those companies.

(Danas, 26.10.2017)

http://www.danas.rs/ekonomija.4.html?news_id=360250

 

 

This post is also available in: Italiano

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