- Non-taxable amount of per diem for business trip abroad is increased from 15 EUR to 50 EUR (calculated in in dinars according to the official middle exchange rate of the National Bank of Serbia on the day calculation of costs). Per diems exceeding the threshold are subject to 10% personal income tax rate.
- The method of calculation of non-taxable cost reimbursement for using a private car for business purposes has been changed – the non-taxable amount equals to 30% of the price of a litre of gasoline per consumed litre of gasoline but cannot exceed maximum of 6,322 dinars per month.
- A new tax incentive for newly employed individuals has been introduced, and applies to at least two newly employed, that allows a refund of 75% salary tax paid on the salary of the newly employed individuals until December 31, 2017 compared to the number of employees on 31 October 2015. Right to use the incentive, under certain conditions, may be exercised by an employer:
- A legal entity classified as micro or small legal entity according to the Accounting Law; and
- Self-employed individual.
- Amendments to the Law on Mandatory Social Security Contributions introduce a refund of social security contributions paid for newly employed individuals under the same conditions as stipulated by the Personal Income Tax Law.
- Salary tax base for Serbian residents who have been assigned to work abroad is no longer salary paid for such work, but is salary that would have been paid in Serbia for the same or similar work.
- Income from real-estate rental or sublease of real-estate is now taxed as a special type of income. Income from rental of own real-estate property according to previous legislation was classified as a capital income. Both type of income is now subject to a single tax rate of 20% after deducting the standard cost of 25%.
- Taking of assets and usage of services of a company by its shareholders for their personal needs is now considered as a capital income.
- Awards, financial aids and other benefits granted to individuals who are not employed with the payer, are now considered as other income, but only if they exceed the annual amount of 12,000 RSD, earned with one payer.
taxnewsletter_januar2016_eng.pdf