Association for Protection of Enterprises and Companies of Serbia to Ask for Tax Cuts

The Association for Protection of Enterprises and Companies of Serbia (Udruzenje “Zastitnik preduzetnika i privrednika Srbije”) will request the Government of Serbia to reform the tax system and reduce the tax obligations by the end of the year, Milena Amon, a representative of the association, said yesterday.

– Small businesses and economy believe that a tax reform that would reduce the tax charges, implement a greater legal security and enable the economy to have a greater participation in the creation of laws is necessary – Amon told Beta.

She added that an analysis of the potential tax cuts was being done and that it would be completed by the end of the year, but that a reduction in tax rates would also help reduce the shadow economy and increase budget revenues.

According to her, business people will also ask for the public administration to be optimized and for border controls to increase so as to reduce the smuggling activities.

Amon said that there were indications that foreign companies which receive subsidies and operate in Serbia did not pay corporate income tax and that they instead took it out of the country through invoices for consulting services and transfer prices, thereby reporting much lower profits than the actual ones.

– A rough estimate says that, by taking out true profit from Serbia, foreign companies avoid paying taxes in the amount of around EUR 4.5 billion – said Amon.

She said that, due to that and due to the avoidance of tax payment in the black market, the budget lost around EUR 12 billion a year.

Udruženje Zaštitnik preduzetnika i privrednika Srbije Beograd

Milena Amon

taxes

charges

reduction

tax system

tax cuts

reform

requests

small economy

subsidies

foreign companies

tax evasion

black market