MALI: Earnings tax to be reduced from 2019

Serbian Finance Minister Sinisa Mali announced today that the earnings tax would be reduced from the beginning of 2019.

– We want to reduce the earnings tax and the proposition will be prepared this year – Mali said at the Chamber of Commerce of Serbia at the Blic Entrepreneur of the Year 2017 contest.

He announced two things the government intends to do for business people this year – the reduction of earnings taxes and the acceleration of VAT reimbursement for eligible business people.

Mali reminded that, under the law, the VAT reimbursement must be made within 45 days, and emphasized that there was no reason for business people to wait so long if their papers are valid and that it would mean a lot to them to get the money as soon as possible due to the liquidity.

– The first next step is to reduce the earnings tax from January 2019. These are two small, but important moves that symbolize the changes taking place in the country – Mali emphasized.

The minister said that micro, small and medium companies made up 99% of Serbia's economy when it comes to the number of companies and 56% of the country's GDP, as well as that they employ 65% of the workers, that is, nearly 840,000 people.

– The state is obliged to support that sector as the pillar of the development of our economy. Last year alone, we set aside RSD 18.2 billion for incentives to SMEs, of which 7.6 billion as grants – Mali said.

The Government also wants to provide as much as possible from EU funds, so that business people would have cheaper sources of finance.

He emphasized that there were no bad economic indicators in Serbia's economy at the moment.

Mali reminded that the economic growth amounted to 4.6% in the first quarter and that the goal was for it to be maintained throughout the year. Also, in the first half of the year, Serbia had a budget surplus of over RSD 30 billion, and the inflation has never been lower and more stable – 1 to 2%.

As he said, there are 18 new companies to each 10 that are closed down, which is a good indicator.

Ministarstvo finansija Republike Srbije

Privredna komora Srbije

Ministry of Finance

Chamber of Commerce of Serbia

CCIS

Sinisa Mali

earnings tax in Serbia

reduction of earnings tax in Serbia

VAT reimbursement

VAT reimbursement for business people in Serbia