The director is appointed by the assembly in the unicameral or supervisory board in the bicameral management of the company. Its position can be regulated in two ways:
1. Establishing an employment relationship by concluding an employment contract (Article 48, paragraph 4 of the Labor Law), for a definite or indefinite period of time, They apply the same rights and obligations as for employees.
2. By concluding a contract on the rights and obligations of the director, the director acquires the right to compensation on which a tax of 20% is paid on the basis reduced by 20% of standard costs, a contribution for pension and disability insurance 25.5% and a contribution for health insurance 10, 3% if the person is not insured on another basis.
Example of calculation under the contract on the rights and obligations of the director when the person is insured on another basis:
Net 50,000.00 rsd
Gross 78,616.35 rsd
Tax 12,576.62 RSD
Pio 16,037.73 rsd
The revenue type code is 1 01 601 000
If this person goes on a business trip for the needs of performing the activities of the payer, which that person refers to the trip and on that occasion he is paid the costs of per diems, transportation and hotels, up to the non-taxable amount under Article 18, paragraph 1, item 2) to 5) of the Law on Personal Income Tax determined in the manner and in accordance with the regulations of the competent state body, taxes and contributions are not paid on this amount – per diems for business travel in the country – up to 2,425 dinars based on the whole per diem for half of the per diem, determined in the manner and in accordance with the regulations of the competent state authority, per diem for business trip abroad – up to the amount prescribed by the competent state authority, and up to 50 euros per day, determined in the manner and in accordance with the conditions prescribed by the competent state authority bodies, reimbursement of accommodation expenses on business trips according to the attached invoice, reimbursements of transportation on business trips, according to attached invoices of public transport carriers, and when, in accordance with the law, other regulations or acts, the use of own car for business travel or other official purposes is approved – up to the amount of 30% of the price per basic unit of measure of motor fuel multiplied by the number j unit of measure of fuel consumed, up to a maximum of 7,071 dinars per month).
The obligatory element of the contract on the rights and obligations of the director is the fee, the minimum and maximum amount of which is not prescribed. So it can be both lower than the lowest base and higher than the highest base. It is always taxed in the same way. If the director waives the fee, an adequate basis is taken for the calculation and taxes and contributions are paid on it, on which the Ministry of Finance gave an opinion number 011-00-1137 / 2018-04 from June 11, 2018.
The fee for representation under the contract on representation and mediation is taxed in the same way as the fee for the work of the director under the contract on the rights and obligations of the director.