IT community worried about the abolition of incentives for newly settled workers: The unexpected decision of the Government damages the business stability of companies in Serbia

Serbian IT Association (SITA), which gathers over 20 tech companies and whose members employ over 4,700 IT experts in Serbia, announced its deep concern regarding the decision of the Government of Serbia to cancel the Regulation on incentives for employers who employ newly settled persons.

This decision was made, as they state, without prior consultation with the economic sector, and especially without dialogue with the IT community, directly affected by this measure.

- In previous years, numerous domestic and foreign companies decided to start or expand business in Serbia, relying on clearly defined state incentives. Those incentives were presented as part of a broader strategy of economic development and positioning of Serbia as a regional IT center. In accordance with that, a large number of companies have already hired highly educated personnel from abroad, planning long-term budgets, investments and business models in accordance with current regulations - the announcement states.

A sudden change, as they pointed out, without a transition period and prior notice, causes serious disruptions in business plans, reduces predictability and sends an unfavorable signal to investors about the stability of the business environment in Serbia. They add that such a decision by the Government will directly affect the stagnation, and according to them, the reduction of the export of IT services from Serbia, as well as the slowing down of technological development in the domains of digitization and artificial intelligence.

- The Serbian IT Association calls for an urgent dialogue with representatives of the Government in order to consider transitional measures and find solutions for the protection of companies that, relying on existing regulations, have already invested significant funds and started employment in accordance with the Regulation. We also appeal for the establishment of a long-term, sustainable and transparent incentive mechanism that will ensure stability and encourage further development of the technological sector in Serbia - SITA said.

In addition, they demand that funds be paid as soon as possible under the Regulation on Incentives for Newly Settled Persons for the period from September 2023 to August 2024.

- Additionally, such a sudden change can cause the departure of IT experts from Serbia and lead companies to seriously reconsider their plans for employment and development in our country - he points out.

The Serbian IT Association reminds the public that the total income of its members exceeds EUR 375 million, out of which almost EUR 290 million come from the export of services. The organization is dedicated to improving the regulatory framework, developing local talents and creating a business climate that simultaneously attracts foreign investors and nurtures domestic experts, with the goal of Serbia's long-term competitiveness on the global IT market.

Srpska IT asocijacija

Vlada Republike Srbije

Serbian IT Association

SITA

Government of Serbia

Regulation on incentives for employers who employ newly settled persons