DMK Tax & Finance LLC Belgrade Serbia

+381 11 408 5131 - office@dmk.rs

DMK Tax & Finance Serbia,Tax, Accounting, Bookkeeping, Legal, Virtual Office Belgrade DMK Tax & Finance Serbia,Tax, Accounting, Bookkeeping, Legal, Virtual Office Belgrade

Fiscal Council proposes tax reform - VAT 22%?

Belgrade, 01.06.2012.

Fiscal Council, an independent professional institution established by the Serbian Government, in its Proposal for Harmonizing Different Methodologies of Public Debt Coverage and Measurement in Serbia 2012-2016 proposed the tax reform to reduce the budget deficit.


Fiscal Council proposed that the tax reform to be implemented in two phases.

 

In the first phase, which will be effective immediately upon the constitution of the Government, proposing:

  • Increase both the tax rate of VAT - from 18% to 22% and from 8% to 10%
  • Switch fifths (non existential) products with lower tax rates on higher tax rate
  • Increase in excise duties, primarily on tobacco products and alcoholic beverages.

 

In the second phase, from 01 January 2013, Fiscal Council suggested:

  • reduce the fiscal burden on labour, by reducing the employer contribution from 17.9% to 10% of gross earnings, which would reduce the fiscal burden of work from 64% to 54% for employees with an average salary and 45% for employees with minimum wage,
  • abolition of the restriction of a number of quasi-fiscal levies,
  • the abolition of exemptions and deductions in the tax on corporate profit and the improvement of legislation and collection of property tax.
Logo footer

Belgrade - Serbia

Phone: +381 11 408 5131, Cell: +381 62 8446 906  E: office@dmk.rs

Legal disclaimer | Contact us

poreski.savetnik.rs

Tax Advisory Serbia -      Accounting Services Serbia