"Significant incentives for beginners in business"

The Serbian government announced this on Friday.

In this way, the government will continue to work on creating a dynamic and competitive economy by further strengthening and developing the sector of small and medium-sized enterprises, it announce on its website.

The introduction of incentives for beginners in business is a key novelty and one of the most important measures of the National Program for the Suppression of the Gray Economy.

It refers to persons who have completed high school, faculty, or, as unemployed, are for over a period of more than six months on the records of the National Employment Service.

By adopting amendments to the Law on Personal Income Tax and the Law on Contributions for Obligatory Social Insurance, those who start performing their own activities will receive additional incentives because they will be exempted from payroll taxes and contributions for compulsory social security in the year of establishment of the company in the next year.

According to a decision made by a working group of the Ministry of Finance, the Tax Administration and NALED, this novelty refers to the earnings of the founder of an entrepreneurial activity and earning up to nine newly employed persons.

The implementation of the measure starts in October 2018 and is valid for entrepreneurs in the regime of paying personal earnings.

An analysis of the tax and non-tax burden of beginners in the business, carried out by NALED, shows that the savings that will be made on this basis by entrepreneurs go up to RSD 250,000 per per person when paying the minimum wage.

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