Tax incentives for IT companies in Serbia

Each year, the National Employment Service publishes various incentives for the employment of highly qualified individuals. A tax exemption is recognized for IT companies. The main thing is that the hired people meet the criteria.

The idea of incentives is that all companies that hire people who have not worked during the whole of 2019 will receive subsidies to ensure employment. Subsidies in this context are understood as discounts related to taxes and contributions of pension, social and insurance (PIO). Discount amount:

  1. During the year 2020: 70% tax and 100% PIO contribution

  2. During 2021: 65% tax and 95% contribution to PIO

  3. During 2022: 60% of taxes and 90% of contributions to the PIO

Benefits apply to newly hired, qualified workers. And not necessarily just for IT companies. The main thing is that the hired people meet the criteria.

Unlike existing incentives, the new incentives work in such a way that the employer does not have to calculate and pay full wages and contributions, and then request a refund. Everything is created in order to pay reduced taxes and contributions during the payment of salaries.

Another important addition is the requirement for the employer to hire a qualified new employee so that the number of employees in the company compared to the number of employees as of December 31, 2019, is greater.

Incentives also apply to new companies (starting their work after December 31, 2019).

To qualify for tax benefits, an employer must hire a qualified specialist on the dates established by law:

  • 01.01.2020 - 04.30.2020, for entrepreneurs and other categories

  • 01.05.2020–31.12.2020. For other categories.

All skilled workers retain incentives if they are hired by a new employer during the specified period. Thus, incentives will not be a privilege only for the employer who first hires a qualified person, but the authorized person will be able to transfer them to each subsequent employer until 12/31/2022.

An employer loses the right to this incentive if (s)he reduces the number of employees compared to the number of employees on December 31, 2019.

There are no restrictions on the number of employees who are paid benefits