Tax reliefs and incentives represent an important support instrument for entrepreneurs and small businesses in Serbia. Their purpose is to reduce the financial burden, encourage business development, and facilitate business start-ups, especially for newly established companies and micro-entrepreneurs. Being familiar with these incentives can significantly affect the profitability and sustainability of a business.

One of the most common tax benefits for entrepreneurs is tax relief during the initial period of business operations. For example, lump-sum (flat-rate) entrepreneurs may have a reduced tax base or pay a fixed lump-sum amount of tax, which simplifies tax calculation and reduces administrative burden. In addition, there are self-employment subsidies granted by the state to individuals starting an entrepreneurial activity, as well as financial support for the purchase of equipment or software.

Furthermore, entrepreneurs may benefit from value-added tax (VAT) incentives, such as VAT exemption if turnover does not exceed the legally prescribed threshold, or the right to VAT refunds on certain business expenses. There are also incentives for hiring new employees, including subsidies for social security contributions and payroll taxes, which further reduce employment costs.

It is essential for entrepreneurs to keep accurate business records and regularly monitor deadlines for filing tax returns in order to take full advantage of all available incentives and avoid potential penalties. Consulting a professional accountant or tax advisor can help maximize the use of these benefits and ensure that business operations develop in a stable and legally compliant manner.

Knowledge of tax reliefs and incentives not only saves money but also enables entrepreneurs to invest in business growth, develop new products or services, and strengthen their competitiveness in the market. Proper application of these benefits contributes to secure and successful business operations.