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The Serbian Ministry of Foreign Affairs denied media reports that Serbian citizens temporarily working abroad will also be required to pay income taxes to foreign employers in Serbia, and not just in the country of residence. temporary.
We believe that catastrophically intoned texts, based on insufficiently researched facts, on a subject that more directly concerns a large number of citizens of the Republic of Serbia abroad, creates an unreasonable concern in our citizens, which can be concluded with the increase in the number of inquiries sent to diplomatic and consular missions. From Serbia, ”the Ministry statement reads.
The statement indicates that there will be no changes in the taxation procedure for these citizens.
“In the hope that behind irresponsible and inaccurate articles from the media on this issue, there are no ill intentions, but misunderstandings, we emphasize that Serbia is doing and will continue to do everything possible to help its diaspora in any way,” concluded the Ministry.
Mali: Tax policy for guest workers hasn’t changed in decades
Today, Serbian Finance Minister Siniša Mali assessed the claims of the media about compulsory payment of taxes by all Serbian citizens working for foreign employers abroad as “malicious”, noting that this confuses citizens and pointed out that it is not necessary to de-register residence in Serbia.
The Ministry of Finance announced that “the regulations on the taxation of wages earned by our citizens abroad have not changed since the beginning of this century. People who work and live abroad know where to pay taxes,” said the Mali minister. .
He explained that residents of Serbia pay payroll taxes in Serbia on the basis of wages paid to them by foreign employers abroad (so-called guest workers), but double taxation of these wages is eliminated according to national regulations. , as well as on the basis of double taxation agreements. .
“Our residents are always entitled to a tax credit based on the tax paid on the salary paid to them abroad, regardless of whether the Republic of Serbia has entered into an agreement to avoid double taxation with the state in which our resident earned his salary. ” “Since the rate of tax on wages in Serbia is 10 percent, as a rule, the right to a tax credit will be enough to completely eliminate the obligation to pay tax on wages in Serbia,” said the minister.
He noted that the agreements to avoid double taxation include rules that prevent citizens of Serbia from having simultaneous residence in Serbia and the country in which they are employed.
As a general rule, under these agreements, they will have the residence of the country in which they are employed, resulting in the fact that they will not have any tax liability in Serbia based on the wages they have earned on the basis of the I work overseas.
In addition, several double taxation agreements provide for the application of exemption methods for the elimination of double taxation of wages earned by residents abroad, so that these agreements exclude any possibility of imposing taxes on Serbian citizens on the basis of of wages earned in countries with which they contract.
The Minister also noted that Serbian citizens employed abroad in Serbia are not insured with social insurance on the basis of the income they receive from that foreign employer.
“Therefore, for people who are not insured according to the national regulations that regulate this area, there is no obligation to calculate and pay the contributions for compulsory social insurance,” Mali said.
The Minister concluded that, in accordance with the above, Serbian citizens employed abroad are not required to pay compulsory social insurance contributions on the basis of income earned abroad by foreign employers.
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