Tax relief on salaries for new employees put into effect

Amendments and supplements to the Individual Income Tax Law, which are in effect as of today, stipulate that employers in the private sector have a right to a refund of part of income taxes and contributions for all newly employed workers.

If they hire minimum one and maximum nine workers, employers will have a right to a refund of 65% of the tax paid, 70% if 10 to 99 workers are hired, and 75% for employing minimum 100 new people.

Refunds will be granted within 15 days of the tax payment date. The new regulation will stay in effect until 30 June 2016.

The idea of employers was to use these amendments to encourage both legalization of existing illegal workers and foreign investments.

For more information on whether tax relief for new employees will bring savings to the economy sector and cut the unemployment rate, click here to read some of the texts eKapija published earlier.

Individual Income Tax Law

tax relief for new workers

income taxes and contributions

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