Public Consultation on Tax Laws Yields First Results: Part of NALED’s Proposals Accepted - Dialogue Continues
According to the Report on the Public Consultation Process published by the Ministry of Finance, several key proposals submitted by NALED regarding the draft tax laws, currently being aligned with the European Union acquis, have been accepted.
Among the most significant accepted measures are the retention of tax incentives for the employment of persons with disabilities and newly hired individuals registered with the National Employment Service, while aligning these incentives with European Union state aid rules. The proposal to retain the corporate income tax exemption for enterprises engaged in vocational training, professional rehabilitation, and employment of persons with disabilities has also been accepted. In addition, entrepreneurs who lose eligibility for the lump-sum taxation regime will be allowed to transition directly to the personal salary taxation regime, reducing costs and avoiding additional administrative burdens.
“Through the working group and during the public consultation process, we submitted proposals for legislative solutions, supporting explanations, and analyses aimed at preserving these support mechanisms while ensuring their alignment with European standards. It is encouraging that the arguments put forward by the business community and civil society were recognized throughout this process, and that certain solutions which we highlighted as having a positive impact on business operations and entrepreneurship development have been accepted,” said NALED Program Director Jelena Bojović.
She emphasized the importance of continuing this dialogue in the coming phases so that all stakeholders can jointly develop a regulatory framework that encourages investment, innovation, and Serbia’s sustainable economic development.
A significant step forward has also been made in the area of food donations. Under the proposed provisions, donations of food approaching its expiration date, subject to prescribed conditions, will not be considered a supply for consideration for VAT purposes. The specific conditions for implementation, as well as the required documentation and record-keeping procedures, will be regulated through a separate bylaw.
Among the proposals that were not accepted are the retention of the tax credit for investments in startups and the retention of tax incentives for individual investments in alternative investment funds. Meanwhile, the proposal to increase the eligibility threshold for lump-sum taxation from six million to eight million dinars remains under consideration.
NALED will continue discussions with the Ministry of Finance on these issues and will closely monitor the further legislative process, given that the laws are still in draft form.
As a reminder, the Ministry of Finance conducted a public consultation on the proposed tax regulations during June, providing representatives of the private sector and civil society with an opportunity to submit their comments and recommendations.
