Employer who employs 10 people will get tax benefits

Employer who employs 10 people will get tax benefits

The law on citizens’ income tax, the debate on changes of which began in the Parliament yesterday, shall be in force as of June 2016. Employers who until then employ up to nine people shall be exempt from payment of 65 percent of the tax.

Employers who employ from ten to 99 people shall get even more benefits. For every ten newly employed people the employers would not pay the tax for seven of them. So employers who increase the number of their employees by at least hundred people would save more than a million Dinars monthly.

The Government estimates that this measure might help that up to 30,000 people get a job. The Finance Minister Lazar Krstic said that ‘these benefits represent an introduction into cutting of unemployment rate and fight against grey economy.

The Energoprojekt Director Vladimir Milovanovic estimates that in Serbia every other construction company has illegal workers, so these measures would certainly cut grey economy in construction sector.

The Delta Holding plans to employ 500 people this year and is welcoming the suggested tax benefits.

The Victoria Group is of the opinion that the announced measures are huge contribution to cutting of unemployment and an additional incentive to many companies.