Serbia entering a new phase of the fiscal reform

On the occasion of a press conference, held last Wednesday night, in Aleksinac, the Republic minister, Mr. Bozidar Djelic announced the imminent adoption of the new Law on Tax Administration, aimed, according to his terms, to introduce more order into the tax collecting from the rich.

– This wouldn’t be any kind of witch-hunt. Those whose business documentation regularly presents almost no profit, while they live like “emperors”, will simply have to prove how this can be possible, said Mr. Djelic, explaining that according to the dispositions of the new legal framework, the Tax Administration will be empowered to compare the documentation statements with the real situation – and if something “does not match”, the appropriate tax will be apportioned, according to an adequate fiscal proceeding. Finally, people will be conscious that everyone should pay taxes, and the richest the most. He also announced the reduction or a complete tax exemption in some cases, and significant tax benefits available to domestic and foreign investors (for more details, please do refer to the article posted 25.09.2002. – “Tax deductions before the Government by the end of the month”).

Serbia is entering the new phase of fiscal reform, represented by the reduction of tax rates, the introduction of a series of tax benefits and the suspension of tax duties for certain products as well as for certain social categories of the population. Therefore, sales tax are suspended for the cooking oil and grease, sugar, computer equipment and housing renting. The income tax rate for citizens is brought down to 14%, the same rate in effect for the tax on corporate profit. The tax on the severance pay for workers older than 50 is also suspended. Companies investing or engaging new manpower can obtain a 10 years period of tax exemption.