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    The effects of LOWER TAX on income during next year: „Hungary did it a DECADE AGO, Serbia is chasing“

    The effects of special-purpose incentives, by decreasing income tax from 15 to three percent to companies that are in business of research and development, will be visible in a year, Docent at Belgrade based Faculty of Law Svetislav Kostic has said. He has stated at the presentation of tax incentives for knowledge industry in Belgrade that, as of January 1st this year, by the Law on Corporate Income Tax and the Law on Citizens’ Income Tax, Serbia has introduced incentives that are already valid in numerous countries for several years. „Amendment of the Law on Corporate Income Tax decreased tax from 15 to three percent for intellectual property created in Serbia, but Hungary did that ten years ago, thus Serbia is actually chasing countries that did this before“, Kostic has said. He has said that investment in establishment of better work conditions for employees is also considered as an expense, and this represents a novelty as well, since that way basis for taxation is being reduced, and goal of that incentive is to stop departure of companies from the country. „We have introduced an incentive, or perhaps we just adjusted to current circumstances, but unlike Hungary that has a four-percent tax on intellectual property income, we introduced a three-percent tax“, Kostic has said. Advisor to the Serbian Prime Minister Nenad Paunovic has pointed out that Serbia is preparing for development of knowledge industry as this is the fastest growing sector, by 30 percent a year, by adjusting school system to development of digital skills. „The IT sector generates six percent of gross domestic product, thus its development is encouraged“, Paunovic has said. He has added that computer science has been introduced in elementary schools, the number of grammar schools for digital competences is increasing, EUR 100 million have been invested in science centres and 1,100 doctoral students have been employed, and since January 1st there is a Science Fund that will enable better cooperation between science and economy.

    Izvor: Beta

    Foto: BIZLife

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