Government to tackle the employment of „flat rate taxpayers“, but with tax reliefs of 70%
Amendments to the Law on Personal Income Tax and the Law on Contributions for Compulsory Social Insurance, starting from the following year, will provide tax incentives for new employment, including employment of young people who are just entering the labour market, Serbian Prime Minister Ana Brnabic stated. As she explained at the press conference in the Serbian Chamber of Commerce, companies that increase the number of employees and hire people who have not been employed during 2019, will be exempt from paying 70 percent of their tax for salaries and contributions during 2020, 65 percent during 2021 and 60 during 2022 respectively. This measure will apply to the employment of those unemployed, regardless whether they are registered with the National Employment Service, are students and entrepreneurs – flat rate taxpayers. The tax incentive will refer to employment as of January 1st, 2019 to April 30th, 2020. She announced that amendments of the law that foresee these incentive measures will be forwarded to the Serbian Assembly in the next couple of weeks. Flat rate taxpayers first in line? Amendments of those two laws will include the so-called Entrepreneurs’ Independence Test, i.e. flat rate taxpayers, as well as related package of tax reliefs, the website „Startit“ reports. The goal of the test is to determine who will be entitled to flat rate taxation in the future or, in other words, it will be determined whether entrepreneur is an employee or an independent service provider. In order to ease transition to a new system, that will undoubtedly lead to reorganization and an increase in levies for numerous companies hiring entrepreneurs as well as entrepreneurs themselves, the Government has announced a set of reliefs at the same time.
Izvor: Beta/Startit
Foto: Beta
