In June, the Government of the Republic of Serbia adopted the Decree on the criteria for granting incentives to employers who employ newly settled persons. The provisions of the Decree refer to all companies that already employ or intend to employ foreign nationals and determine the conditions for exercising the right to getting the incentive.
The incentive is realized once a year by the refund principle, for a maximum period of 5 years, by refunding 70% of paid income tax and 100% of paid mandatory social insurance contributions.
Employers who are registered to carry out business activities on the territory of the Republic of Serbia, i.e. domestic or foreign natural persons, legal entities, entrepreneurs, as well as representative offices or branches of foreign employers in the Republic of Serbia, can apply for the incentive.
A newly settled person is considered to be a person for whom there is a need that cannot be easily met in the domestic labor market and who, in 24 months preceding the day of concluding the employment contract, did not stay on the territory of Serbia for more than 180 days, and with whom the employer concluded a contract for an indefinite period defining a full-time work position.
An additional condition for the incentive is the defined minimum amount of the newly settled person’s gross salary, which amounts to at least RSD 300,000.00.
The application for the incentive grant is submitted annually to the Ministry of Economy in the period between September 15 and 30, whereby the application is submitted for salaries paid in the period preceding the submission of the application.
The application must contain data about the employee, the employer’s business data, a salary calculation showing 70% of the calculated and paid tax and 100% of the calculated and paid mandatory social insurance contributions, as well as the amount of the incentive for which the refund is requested following the calculation.
Along with the application, it is necessary to attach a written statement of the employed newly settled person in which the person confirms, under criminal and material responsibility, that in 24 months preceding the day of concluding the employment contract with the employer, they did not stay on the territory of the Republic of Serbia for more than 180 days.
The decision on the grant of the incentive is made by the Ministry of Economy within 120 days from the application submission deadline.