The Ministry of Finance has published the draft Personal Income Tax Amendment Act and draft Compulsory Social Insurance Contributions Amendment Act. Here is a short summary of the legal changes which, if adopted, shall take effect on 1st January 2021:
- The tax-free personal allowance is increased from the current 16,300 RSD to 18,300 RSD a month;
- The „old“ tax reliefs are extended again (articles 21v and 21d of the Personal Income Tax Act);
- The definition of an employer is extended so as to specify their right to a tax relief on account of qualified new hires;
- A new way of levying tax on the income of individuals assigned to Serbia from abroad is introduced;
- For domestic legal entities a notification about someone’s wish to receive salary shall be delivered electronically;
- According to an expanded definition, the scope of income from capital shall include income derived from the ownership over an investment unit of an alternative investment fund;
- More types of income shall be subject to capital gains tax;
- Profit from special games of chance shall be tax exempt;
- The right to a tax credit on the basis of annual personal income tax stemming from investing in an alternative investment fund and/or purchasing of an investment unit of an alternative investment fund is introduced;
- The number of persons required to pay withholding tax on the income from capital if the payer of income is an open investment fund and/or an alternative investment fund which is not considered a legal entity is increased.