The untaxed part of salaries will be raised by over 3,000 dinars per employee, while first time business owners will be exempt from paying income tax for up to nine of their employees.
This is what the amendments on the Law on Income Tax say which were adopted by the Serbian Parliament today.
The amendments also stipulate that the incentives for new jobs will be valid in 2018, while the amendments to the Law on Mandatory Social Insurance regulate incentives for first time business owners. According to the law, they will be example from paying mandatory social insurance and income tax in the first two years of business.
Now, the untaxed part will amount to 15,000 dinars as opposed to 11,790 dinars, and this stipulation will come into force on 1st January, 2018. Also, the minimum hourly wage will not be 143 dinars which is a 10% hike compared to 130 dinars in 2017.
Close to 350,000 workers in Serbia are on minimum wage which, on average, amounts to 22,620 dinars. As of 1st January next year, their wage will go up by 2,202 dinars, to 24,822 dinars a month.
The Serbian Parliament also adopted amendments to the Law on Corporate Income Tax, which should simplify the write-off of the so-called non-performing loans, i.e. uncollectible receivables based on loans granted to individuals and legal entities.
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