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Today, Serbian Finance Minister Siniša Mali assessed the claims of the media about compulsory tax payment by all Serbian citizens working for foreign employers abroad as “malicious”, noting that this It confuses the citizens and pointed out that it is not necessary to cancel the residence in Serbia.
Photo: BETAPHOTO / MILOS MISKOVEarlier, the Serbian Foreign Ministry today denied the media claim that Serbian citizens temporarily working abroad will be obliged to pay income taxes to foreign employers in Serbia, and not only in the country. temporary residence.
Subsequently, the Ministry of Finance announced that “the regulations on the taxation of wages that our citizens earn 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 won”.
“Since the rate of tax on wages in Serbia is 10 percent, as a rule, the right to a tax credit will be sufficient to completely eliminate the obligation to pay tax on wages in Serbia,” said the minister.
He noted that double tax treaties establish rules that prevent Serbian citizens from having the same residence as 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 agreements to avoid double taxation 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 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.
“So, 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 mandatory 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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