Tax incentives for startups - Tax International

Tax incentives can significantly help reduce the operating costs of startup companies, especially in their early years of operation. One of the most significant tax benefits for startup founders in Serbia is the exemption from paying income tax and contributions for mandatory social insurance. This exemption applies to founders who are simultaneously employed at the startup and allows for a reduction in operating costs for a period of 36 months from the date of the startup’s establishment. To qualify for this benefit, the founders must be employed by the startup, sign an employment contract, and be registered for mandatory social insurance. Additionally, they must hold at least 5% of shares or stakes in the startup during the duration of the incentive, and the startup must not have affiliated legal entities that can influence business decisions.
First of all, if the founder has a gross monthly salary of up to 150,000 dinars, the startup is exempt from paying taxes and contributions on that salary. For earnings above that amount, the relief applies only to the portion up to 150,000 dinars.
Startup loans for starting a business.
Starting a business can be financially challenging, but startup loans represent significant support for entrepreneurs who want to bring their business ideas to life. These types of loans are offered through commercial banks and the Development Fund, with different conditions tailored to the specific needs of entrepreneurs. The Development Fund annually publishes the conditions for granting startup loans, which range from 280,000 to 2.1 million dinars, and for companies up to 4.2 million dinars. In addition, grants ranging from 120,000 to 1.8 million dinars can also be obtained. Startup loans can be used for various purposes such as renovating business premises, purchasing new or used equipment (not older than five years), while industries such as retail, gambling, arms procurement, and similar products are excluded from this scheme.
The interest rate on these loans ranges from 1.5% to 3% annually, with a bank guarantee or other forms of collateral such as a first-ranking mortgage, a pledge on movable property, or a contractual guarantee from a legal entity.
The repayment period for a startup loan is generally up to five years, with a grace period of up to one year.
These loans enable entrepreneurs to more easily start their businesses, invest in necessary equipment and infrastructure, and focus on the growth and development of their ventures.

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