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Belgrade – Minister Siniša Mali noted that the emphasis on mandatory tax payment for all citizens working for foreign employers abroad confuses citizens.
Source: B92
Photo: Ministry of Finance
He pointed out that “it is not necessary to cancel residence in our country”, it is stated in the announcement of the Ministry of Finance.
“The essence is 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 they must pay taxes, ”he said.
Namely, as he explained, the residents of the Republic of Serbia are subject to payroll taxes in the Republic of Serbia based on the wages paid to them by foreign employers abroad (the so-called guest workers), but the double Taxation of these wages is eliminated in accordance with national regulations and double taxation treaty, the ministry said.
“It should be noted that 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 a double taxation agreement with the country where it is located. our resident made a profit. “Since the salary tax rate in Serbia is 10%, as a rule, the right to a tax credit will be enough to completely eliminate the obligation to pay the salary tax in Serbia “said Minister Mali.
Agreements to avoid double taxation establish rules that prevent our citizens from having the simultaneous residence of the Republic of Serbia and the state in which they work. As a general rule, according to these agreements, they will have the residence of the state in which they are employed, which results in the fact that they will not have any tax liability in the Republic of Serbia on the basis of wages earned for work in abroad. In addition, a series of 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 taxing our citizens on the basis of wages earned in the countries with which we have entered into such contracts, the statement said.
The Minister also pointed out that regarding obligations based on compulsory social insurance contributions, citizens of our country employed abroad are not insured in the Republic of Serbia by compulsory social insurance based on the income they obtain from that employer. foreigner, it was announced.
“Therefore, for people who are not insured in accordance with the national regulations governing this area, there is no obligation to calculate and pay contributions for mandatory social insurance,” he said, and concluded that, consequently, the Citizens of the Republic of Serbia 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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