Year 2022 brings new set of Tax Laws in Serbia

A new set of Tax Laws has been adopted in the Republic of Serbia most of which will be applicable as of January 2022. The main changes are seen in: 

Law on Amendments to the Law on Personal Income Tax 

• Non-taxable salary amount will be increased from 18.300 RSD to 19.300 RSD 
• Validity of the “old” reliefs from articles 21c and 21d of this Law has been extended by the end of 2022; 
• Tax relief for newly established companies performing innovation activities (under Article 21e of the Law on Personal Income Tax), based on employees’ salaries is applicable for companies that will be established after December 31, 2021; 
• The application period for the Tax exemption based on qualified new employees’ salary has been extended by the end of 2025. (by prescribing additional conditions for the continuation of the exercise of rights) – Law on Personal Income Tax, Article 21g;
• New relief will be applicable starting 1 March, 2022 for new employees (unemployed persons in the period from 1 January 2019 to 28 February 2022) – Article 21z of this Law. 
• A new established relief, starting March 1, 2022. for legal entities/employers that conduct research within their activities – Article 21i; 
• Capital gains tax exemption for tax payer who contributes copyright and all related rights, as industrial property rights in its entirety as a non-monetary contribution to the capital of a company resident in RS; 
• Annual taxation reduction fox taxpayers under the age of 40 by reducing the taxable income; 
• Reimbursement earned by students who perform work-based learning will be exempted from taxation. 

Law on Contributions for Compulsory Social Insurance 

Decreasing of the employer’s contribution rate for pension insurance for 0,5%; the total contribution rate for pension insurance will be 25% instead of 25.5%.Applicable from 1 January 2022. 

Law on Amendments to the Law on Corporate Income Tax 

One amendment has been made (in Article 30 of this Law) – providing the taxpayer to exclude capital gain from transferring intellectual property rights (copyright, copyright related rights, as and the right to find) to a resident legal entity capital from corporate income tax base. The conditions were prescribed in order to avoid losing the right on this tax benefit. This change will be applied for a tax period starting in 2022.  

Law on Property Taxes

• The lease of an apartment constituted in accordance with the law governing planning and construction, as well as the law governing science and research has been treated as a subject of a property tax; 
• In the case of a married person who acquires real estate through a legal transaction the date of arising the obligation has been regulated; 
• Tax on the transfer of absolute rights in the transfer of ownership of a used motor vehicle and a gift tax will be determined by applying the formula depending on the working volume of the vehicle engine, vehicle engine power and vehicle age factor;
• The taxpayer of the tax on the transfer of absolute rights is the buyer in the case of transfer, with compensation of ownership rights on a used motor vehicle. In the case of transfer between the subjects who are not VAT payers, no tax return is submitted (the tax is paid by self-taxation). Exceptions are the cases where tax exemption is prescribed. 
• Category “rent a car” is no longer a condition for exercising the tax exemption for the transfer of ownership of these vehicles. 

For further information please contact Ms. Ivana Živic, Senior Payroll Specialist, at our Eurofast office in Serbia at belgrade@eurofast.eu