New law to reduce burden on earnings from 62 pct to 61 pct

The Serbian parliament on Friday passed a set of tax laws including amendments to the Law on Contributions for Compulsory Social Insurance reducing the pension and disability insurance rate from 26 pct to 25.5 pct.

06 Decembar 2019 16:25

BELGRADE - The Serbian parliament on Friday passed a set of tax laws including amendments to the Law on Contributions for Compulsory Social Insurance reducing the pension and disability insurance rate from 26 pct to 25.5 pct.

The MPs also passed amendments to the Individual Income Tax Law raising the non-taxable amount of monthly earnings from 15,300 dinars to 16,300 dinars.

Finance Minister Sinisa Mali said during the debate the tax burden on earnings would be reduced from 62 pct to 61 pct.

He said the tax burden was being reduced year by year to spur job creation and wage increases.

Tax incentives giving Serbian expats who return to live and work in the country a 70 pct reduction of the base for calculating taxes and social security contributions were passed as well.

The parliament also passed amendments to the law regulating the wages of public service employees under which a planned transition to salary bands is postponed until 2021.

(1 euro = 117.5 dinars)

Photo: Tanjug/S.Ilic, file


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