Share this post

Serbia/December 2013 Amendments to the Law on Social Insurance Contributions have brought about significant changes relating to the social insurance obligation of founders or members of legal entity (company). With these new amendments the founders or the members (shareholders) will be able to pay social contributions in two ways, depending whether there is an employment arrangement is in place or not: -If the founder or a shareholder is not employed by the legal entity, the contributions  should be paid based on the lowest monthly threshold specified by the social insurance contributions law, provided that the taxpayer is that very legal entity. -If the founder or a shareholder is employed by the legal entity, the contributions, as in the previous period, are being paid as a standard part of the payroll package. Therefore, the most important change refers to the termination of obligation of payment of social contributions for founders and shareholders based on the taxable profit of their company, based on the assessment of the Tax Administration. The law furthermore defines and closer explains the issue of social contributions in the following cases: -Founder who works in his own company,  but is at the same time employed by another company; -Founder of more than one companies; and -Pensioner as a founder or a member of legal entity. Eurofast Global, Belgrade Office Tel:  +381 11 3241 484