How to reduce the tax base for newly employed individuals?

Employers in Serbia can benefit from tax exemptions for newly hired employees who entered into an employment relationship between March 1st, 2022, and December 31st, 2022. This incentive allows for the exemption from 70% of income tax and 100% of contributions for mandatory pension and disability insurance for these individuals, for wages paid until December 31st, 2024.

Conditions for obtaining the exemption:

The individual was not an insured employee between January 1st 2019, and February 28th, 2022
The employment relationship must be established between March 1st 2022, and December 31st 2022
Monthly gross salary must exceed 76,500 dinars
The individual must not be a recipient of an old-age, early retirement, or disability pension since January 1st 2019

Required documentation:

Certificate from the Unified Database of the Central Register of Mandatory Social Insurance regarding the previous insurance status
Employment contract with the newly hired individual
Social insurance registration form.

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