The year 2022 brings a new set of tax laws in Serbia – Taxation

Serbia: The year 2022 brings a new set of tax laws in Serbia

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A new set of Tax laws was adopted in the Republic of Serbia, most of which will be applicable from January 2022. The main changes are observed in:

Law on Amendments to the Personal Income Tax Law

  • The amount of non-taxable salary will increase from RSD 18,300 to RSD 19,300
  • The validity of the “old” reductions in Articles 21c and 21d of this law has been extended by the end of 2022;
  • A tax relief for newly created companies carrying out innovative activities (under Article 21e of the Personal Income Tax Law), based on the salaries of employees is applicable for companies that will be created after December 31, 2021;
  • The period for applying for tax exemption based on the salary of new qualified employees has been extended by the end of 2025. (by prescribing additional conditions for the continuation of the exercise of the rights) – Tax Act income of natural persons, article 21g;
  • A new allowance will be applicable from March 1, 2022 for new employees (unemployed for the period from January 1, 2019 to February 28, 2022) – Article 21z of this law.
  • A new relief established, as of March 1, 2022. for legal persons / employers who carry out research in the course of their activities – article 21i;
  • Capital gains tax exemption for the taxpayer who contributes copyright and all related rights, as industrial property rights in their entirety as a non-monetary contribution to the capital of a company resident in RS;
  • Annual tax reduction for taxpayers under 40 by reducing taxable income;
  • Refunds received by students who complete on-the-job learning will be tax exempt.

Law on compulsory social insurance contributions

Decrease in the employer’s contribution rate for pension insurance by 0.5%; the total contribution rate for pension insurance will be 25% instead of 25.5%. Applicable from January 1, 2022.

Law amending the law on corporation tax

An amendment has been made (to article 30 of this law) – providing that the taxpayer excludes capital gains from the transfer of intellectual property rights (copyright, neighboring rights, right to find) to a person corporate resident corporate tax capital. The conditions have been prescribed in order to avoid losing the right to this tax benefit. This change will be applied for a fiscal period starting in 2022.

Real Estate Tax Act

  • The lease of an apartment constituted in accordance with the law on town planning and construction, as well as the law on science and research has been assimilated to a property tax;
  • In the case of a married person who acquires real estate through a legal transaction, the date of birth of the obligation has been set;
  • The tax on the transfer of absolute rights on the transfer of ownership of a used motor vehicle and a gift right will be determined by applying the formula according to the useful volume of the vehicle engine, the power of the vehicle engine and the age factor of the vehicle;
  • The taxpayer of the tax on the assignment of absolute rights is the purchaser in the event of assignment, with set-off of the property rights in a used motor vehicle. In the event of transfer between subjects not subject to VAT, no tax declaration is filed (the tax is paid by self-taxation). The exceptions are cases where a tax exemption is prescribed.
  • The “rent a car” category is no longer a condition for exercising the tax exemption for the transfer of ownership of these vehicles.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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