Tax reliefs for newly employed workers as of July 1st - Amendments and supplements to Individual Income Tax Law adopted

The National Assembly of Serbia adopted Friday (30 May 2014) amendments and supplements to the Invidual Income Tax Law, which will ensure employers tax reliefs for all newly employed workers, as well as amendments to the Law on Mandatory Social Insurance Contributions.
A total of 169 MPs voted in favor of the adoption of amendments to the Individual Income Tax Law, while 18 members of parliament were against.

According to these amendments, employers will have the right to a refund of 65% of the tax paid if they have hired minimum one and maximum 9 workers, 70% if between 10 and 99 new workers have been employed, and 75% for employing minimum 100 new workers.

Amendments to the Individual Income Tax Law will be in effect as of July 1st.

The National Assembly of Serbia also adopted amendments to the Law on Mandatory Social Insurance Contributions, which increase the pension and disability insurance contribution rate by 2% - from 24 to 26, and decrease the health insurance contribution rate from 12.3 to 10.3 percent.

A total of 168 MPs voted in favor of amendments to this law, while 20 of them were against. By an amendment passed by the Serbian government, the application of new rates is postponed until August 1st due to floods and the state of emergency, while the budget revision is postponed until July.

Narodna skupština Republike Srbije

Vlada Republike Srbije

Individual Income Tax Law

Law on Mandatory Social Insurance Contributions

income tax

tax reliefs

budget revision

taxes and contributions