Starting from 1 October 2018, a youth employment incentive for pursuing its own business is coming into effect. The incentive will allow tax and social security contribution exemption, during the first year of the business. This incentive has been envisaged by the amendments to the Law on Personal Income Tax and the Law on Contributions for Compulsory Social Insurance, adopted in December last year.
Requirements
Said incentive may be used by newly established companies or sole proprietors who pay out salary, for up to 9 employees who meet the following requirements:
- They completed a high school or college education in the period of one year prior to the use of the incentive and
- They have been registered with the National Employment Service for more than six months prior to the use of the incentive.
Furthermore, the assumption for using this measure is that the annual salary for each employee in the tax exemption regime must not exceed the amount of three times average annual salary in Serbia.
This tax exemption can be used only once.
