The Republic of Serbia has many opportunities for companies looking to expand. With more than 8 million people, and thriving agriculture, automotive, and mining industries, the Republic of Serbia is a manufacturing hub with a highly-skilled workforce.
There are 4 main types of business structures in the Republic of Serbia, including limited partnerships, partnership, limited liability, and joint stock companies. The corporate tax rate is 15%, and branches of foreign companies pay the same rate.
Labor and Payroll Considerations:
- Collective bargaining agreements are made by both industries and employers
- In 2020, the minimum wage will rise to RSD 30,022 per month ($283 USD)
- New employees should be registered with the Pension and Insurance Fund and the Health Insurance Fund
- Employment agreements must be in writing
- Income tax and social security are withheld by the employer
- There are monthly and annual reporting requirements for taxes and social security
- Foreign workers need a work permit, and if staying longer than 180 days must also need a temporary residence permit
- There is no limitation on sick time. The first 30 days of leave are paid for by the employer, and for non-work related injury, the worker is entitled to 65% of the previous year average salary. Employers will pay for employee sick leave after 30 days, but are allowed to recoup those costs from the state at a later date
Changes have been made by the Ministry of Finance to the rulebook on Value Added Tax (VAT). The new VAT regulations will include several provisions including what determines the “predominant trade” of goods abroad. There are also decrees related to the autonomous provinces of Kosovo and Metohija. This new VAT rulebook includes changes to turnover in the construction industry, invoicing, VAT base, and tax exemptions.
To get started in the Republic of Serbia, or to simplify your operations there, we can help. Blue Marble has created cloud-based payroll technology with customized monthly reporting to give you real-time access to your payroll. Our hybrid service model gives you a dedicated US-based team and in-country experts to help when questions come up. Get started today and see how easy global payroll can be! Click here to learn more