Below are the most important opinions of the Ministry of Finance in the field of personal income tax, which were published in the previous period.
Tax treatment of the income received by non-resident natural persons assigned for work in the Republic of Serbia
“… In the specific case, natural person is assigned to the work in the Republic of Serbia for the purpose of performing activities in the territory of the Republic of Serbia for the needs of the Company – a domestic legal entity (whereby the employee does not contract employment relationship with the domestic Company, nor the Company pays the salary to the assigned employee). The employee remains in employment relationship with a foreign employer (a Swiss company) which pays the salary to that employee, and in accordance with the Agreement (on business and technical cooperation), the Swiss company charges fee for the services provided (the transfer of business knowledge to the Company) in the amount of paid salary increased for a commission of 5%. The employee is obliged to calculate and pay tax on his/her salary received form his/her employer – foreign company (except in cases where, by the Double Tax Treaty the otherwise is prescribed, i.e. if the Republic of Serbia does not have the right of taxation) and to submit tax return for calculated and paid tax to the competent Tax Authority.
Additionally, if the Company pays compensation of costs to the assigned employee – non-resident natural person (in particular, the Company is obliged to provide accommodation – up to a certain amount increased for the costs of electricity, water and heating; unlimited use of the official car and round-trip air tickets from the workplace in Serbia to Switzerland) such income is considered to be other income of the natural person and is subject to personal income tax in accordance to the Articles 85 and 86 of the PIT Law, for which the Company as a payer of income is obliged to calculate and pay withholding tax.”
(Opinion of the Ministry of Finance, No. 011-00-281/2018-04 dated 31.5.2018)
Tax treatment of reimbursement of costs to doctors for participation in professional seminars
“…In the specific case, The company that deals with the provision of marketing services in the field of pharmaceutical industry, as well as carrying out clinical trials, covers the cost of participating of doctors (at their request) at various scientific congresses and seminars (for the attendance at these meetings, doctors do not receive compensation other than cost of participation covering). Scientific congresses and seminars refer to the products that the Company advertises in the course of their business activity (and thus improves its business) as well as to continuous notification of new trends in the pharmaceutical industry, in which way the company improves the knowledge of the doctor with whom it cooperates. The reimbursement of travel, accommodation and food expenses shall be taxed in accordance with Article 85, Paragraph 5, Item 5) of the PIT Law, in the sense that it is exempt from taxation to the amount of the prescribed non-taxable amount. For the reimbursement of the registration fee for the attendance the event, tax on other income should be calculated and paid in accordance with Article 85 of the PIT Law”
(Opinion of the Ministry of Finance, No. 430-00-00205/2018-04 dated 10.5.2018)