What Is New With Incentives For Employment Of Foreigners In Serbia
Be among the first to use the package of incentives for the employment of foreigners in Serbia
Do you want to hire foreigners as part of your business? Do you want to save 70% on employee payroll tax and 100% on employee compulsory social security contributions? If the answer is yes, then this text is just for you.
In June this year, the Government of Serbia passed the Decree on Criteria for Granting Incentives to Employers Employing Newly Residents in the Republic of Serbia (“Decree“), which precisely determines the conditions and procedure for exercising the right to incentives for the employment of foreigners.
In the following text, we will explain the mentioned conditions and procedures so that you do not end up in a situation where you fail to achieve savings due to a lack of information.
Who can exercise the right?
You can exercise the right to incentives if you are registered to perform activities in the Republic of Serbia as:
- domestic or foreign natural person;
- legal entity;
- representative office or branch of a foreign employer in the Republic of Serbia.
Who is considered a newcomer?
According to the Decree, a newly settled person is a natural person for whom there is a need that cannot be easily met in the domestic labor market who, in the period of 24 months preceding the day of concluding the employment contract with you, did not stay in Serbia for more than 180 days, with whom you have concluded a full-time employment contract.
An important condition that you must pay attention to is that you must provide the newly settled person you hire with a gross salary in the amount of at least 300,000 RSD.
How to get incentives?
As an Employer, you are obliged to submit an application to the Ministry of Economy once a year, in the period between the 15th and 30th of September, for the payment of incentives related to the salaries of newly settled persons, where each application is submitted for salaries paid in the period preceding the submission of the application for a maximum of 12 months.
The application must contain your business data (PIB, MB, activity, etc.), the amount of incentives for which the award is requested in accordance with the calculation. In addition, with the application, you need to enclose data on the employee as well as the calculation of salary in which 70% of calculated and paid taxes as well as 100% of calculated and paid contributions for compulsory social insurance, for those salaries paid in a particular period relating to the application. Finally, it is important to enclose a written statement to the employee of the newly settled person by which that person under criminal and material responsibility confirms that in the period of 24 months preceding the day of concluding the employment contract with the employer he did not stay in the Republic of Serbia for more than 180 days.
In accordance with the Decree, the Ministry of Economy decides on the submitted applications within 120 days from the expiration of the deadline for submission of applications.
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