Amendments to several Tax Laws have been published

Amendments to the Law on Contributions for Mandatory Social Insurance The Government of the Republic of Serbia has adopted the Proposal of the Law to the Law on Contributions for Mandatory Social Security, which shall be implemented from January 1, 2024. The adopted amendments envisage extending the application of benefits from articles 45 and 45v of this Law until December 31, 2024. Also, all taxpayers who meet the conditions set by the articles mentioned above of the Law can use tax relief for newly employed persons (refund of part of paid contributions) until the end of 2024. Amendments to the Law on Property Taxes The Government of the Republic of Serbia adopted the Proposal of the Law to the Law on Property Taxes, which shall be implemented from January 1, 2024. With the changes mentioned above, the tax exemption related to the tax on the transfer of absolute rights in respect of diplomatic and consular missions of foreign countries has been expanded, in the sense that the tax exemption refers to the situation when a foreign country acquires immovable property for the needs of its diplomatic and consular mission. Also, with the abovementioned changes, the period in which local self-government units will be competent for determining, collecting, and controlling inheritance and gift taxes and taxes on the transfer of absolute rights has been extended to January 1, 2025. Amendments to the Law on Personal Income Tax The Government of the Republic of Serbia has adopted the Proposal of the Law to the Law on Personal Income Tax, which shall be implemented from January 1, 2024. The changes mentioned above result in an increase in the non-taxable amount of earnings from RSD 21,712 to RSD 25,000 per month. Also, the changes mentioned above refer to employment incentives as well, in the form of an increase in the right to refund part of the tax paid based on the earnings of a newly employed person from 65% to 75%. Amendments to the Law on health insurance The Government of the Republic of Serbia has adopted the Proposal of the Law to the Law on Health Insurance, which shall be implemented from November 4, 2023. The employer submits to the RFZO branch a request for the payment of wage compensation for employees who are temporarily prevented from working for more than 30 days, i.e., when the payer of that compensation is the RFZO. The branch determines the right to wage compensation, the amount of wage compensation, and no later than within 21 days from the date of receipt of the request for the payment of salary compensation, with all the evidence necessary for the payment of salary compensation, the branch makes a calculation, which submits to the employer and transfers the corresponding amount of funds to the employer’s separate account. The employer must pay the insured the funds within 7 days at the latest (instead of the previous 30 days). The employer is obliged to submit a request for salary compensation to the branch no later than 15 days (instead of the previous 30 days) from the day of salary payment for the month to which the compensation applies. The number of days up to which the chosen doctor determines temporary incapacity for work is reduced, which is 30 days, with the possibility that the chosen doctor can determine temporary incapacity for work up to 60 days. There are also stipulated situations in which the chosen doctor can establish a temporary inability to work for up to 60 days. The RFZO commission gives an assessment and determines the insured person’s temporary incapacity for work based on the proposal of the chosen doctor for over 30, i.e., 60 days (in cases where the chosen doctor has established temporary incapacity for work for up to 60 days), and decides upon the insured’s or employer’s objection to the assessment of the chosen doctor’s report on temporary incapacity for work. Amendments to the Law on electronic invoicing The Government of the Republic of Serbia adopted the Proposal of the Law to the Law on Electronic Invoicing. The changes mentioned above refer to the change in the deadline for electronic recording of VAT calculations, which shall be 10 days from the end of the tax period, with application from January 1, 2024. Also, the changes mentioned above refer to the electronic recording of the previous tax, which shall begin to be implemented on August 31, 2024.