At the session of the National Assembly held on December 17, 2020, amendments to the Law on Personal Income Tax and the Law on Contributions for Mandatory Social Insurance were adopted, which were published in the "Official Gazette of RS", No. 153/2020 of 21 December 2020

Amendments to the Personal Income Tax Law and the Law on Mandatory Social Security Contributions (PITL, MSSCL)

The period of application of the existing reliefs for employment of new persons, which the employer realizes as the right to refund a part of the paid taxes and contributions based on the salary of the newly employed person (from 65% to 75%), namely those paid as of December 31, 2021 (Article 21v and 21d PITL and Article 45 and 45v MSSCL)

It is specified that the employer - a newly established company that performs innovative activities in terms of the law governing corporate income tax can exercise the right to exemption from payment of calculated and suspended tax from the salary of the founders who are employed in the newly established company (Article 21e PITL and Article 45d MSSCL).

According to the specified provisions of both laws, for the purposes of applying the provision governing relief based on employment of a qualified newly employed person, the employer would be considered a legal entity, entrepreneur, flat rate entrepreneur, entrepreneur farmer and individual, as well as a representative office and a branch of a foreign legal entity (Article 21ž PITL and 45đ MSSCL).

Amendments to the Personal Income Tax Law

The non-taxable amount of salary is increased from RSD 16.300 to RSD 18.300 per month;

Tax treatment of income on the basis of ownership over the investment unit of an alternative investment fund, ie income on the basis of its transfer, as well as tax credit for annual tax on the basis of investment in alternative investment funds, ie purchase of an investment unit of an alternative investment fund is regulated;

It is prescribed that such income of an individual who realizes it as an owner of investment units of an alternative investment fund, is taxed as income from capital, ie. by applying a rate of 15% to the realized income. Transfer with compensation of ownership of the investment unit of the alternative investment fund, in accordance with the proposed amendments to the Tax Law, is taxed according to the rules on taxation of capital gains.

It is prescribed that the purchase price of the investment unit, for the purpose of determining the capital gain, consists of the net value of the fund's assets per investment unit on the day of payment, increased by the purchase fee, if the management company charges it, according to the laws governing investment funds.

Tax incentive is regulated in the form of a tax credit for investing in an alternative investment fund, ie in the purchase of an investment unit of an alternative investment fund, at the expense of annual personal income tax, up to 50% of investment made in the calendar year for which the annual personal income tax is determined.

It is prescribed that the transfer of digital assets be taxed with capital gains tax. The purchase value of digital assets, for the purpose of determining capital gains, is the price is that the taxpayer documents as actually paid, and if he transfers digital assets acquired by providing computer confirmation of transactions in information systems related to certain digital assets, (mining of digital assets), the purchase price is considered to be the amount of costs incurred by the taxpayer connected to the acquisition of the subject property, which can be documented.

A tax exemption in the amount of 50% of the determined tax on capital gains based on the sale of digital assets is regulated, if the funds generated by the sale, within 90 days from the day of sale, are invested in the share capital of a company resident in the Republic of Serbia, ie if these funds are invested in the capital of an investment fund, established in accordance with the laws governing investment funds, and whose center of business and investment activities is located in the territory of the Republic of Serbia.

It is prescribed that the tax on winnings from games of chance won’t be paid on the realized profit from special games of chance, including special games of chance when they are organized through electronic means of communication in terms of the law governing games of chance.

The provision related to the obligation to calculate and pay taxes by self-taxation has been regulated, and the obligation of a domestic legal entity to calculate and pay withholding tax has been introduced, in the case when that domestic legal entity makes a payment to an employer from another state. was sent or sent to work for a domestic legal entity.

The base of the payroll tax for the person for whom the domestic legal entity pays this tax is specified, and that the payroll tax is calculated on the basis determined in the amount paid by the domestic legal entity to the employer from another country as compensation for labor costs. was sent or sent to work for a domestic legal entity (without the right to deduction for the non-taxable amount of salary).

It is specified that the obligation to calculate and pay taxes by self-taxation also has a taxpayer - a person who is sent to work for a domestic legal entity, based on earnings and other income earned by an employer from another country who sent him to work in Republic with a domestic legal entity, unless the tax was previously paid by a domestic legal entity, after deduction.

A qualified employer is considered to be any employer resident in the Republic, who establishes an employment relationship with a newly established taxpayer who has met the conditions for at least three years since 1990 and is considered a resident of the Republic, based on residence or center of business and life interests.

The notification on the decision for the payment of personal salary (entrepreneur and entrepreneur farmer) will be submitted in electronic form.