Just one word added to the Article 18 of the Law on Personal Income Tax might leave most employees in Serbia without the favourite cash that they receive based on transportation costs. As of January 1st, if Draft of the Law is adopted in its present form, employees will be able to choose whether to buy workers monthly passes, force them to bring and justify costs with receipts or start paying a 10-percent tax on cash paid. It is certain that, once this becomes part of the law, anyone who fails to comply with the regulations will risk being fined. At the beginning of the year the Ministry of Finance issued an opinion, already suggesting that each metre one needs to take to work would have to be backed up by “documentation” if employer wants to keep this fee tax-free. Admittedly, there is no data on how many companies adhered to this opinion. It is clear that they will have to comply with the law, but it is difficult to guess what they will choose as the most favourable option. The biggest uncertainty lies with employees who do not use public transportation to their workplace.
Source: Večernje novosti