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The essence is 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, Mali noted.
Namely, as he explained, the residents of the Republic of Serbia are subject to payroll taxes in the Republic of Serbia on the basis of the wages paid to them by foreign employers abroad (so-called guest workers), but the double Taxation of these wages is eliminated in accordance with national regulations and double taxation treaties.
“It is necessary to note that our residents are always entitled to a tax credit based on taxes paid on earnings paid abroad, regardless of whether the Republic of Serbia has a double taxation agreement with the country where our resident is located. Given Since the wage tax rate in Serbia is 10 percent, as a general rule, the right to a tax credit will be enough to completely eliminate the obligation to pay the payroll tax in Serbia, “said Minister Mali.
Double taxation agreements establish rules that prevent our citizens from having simultaneous residence in the Republic of Serbia and the country in which they work. As a general rule, according to 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 the Republic of Serbia on the basis of wages earned for work in abroad.
Furthermore, a series of double taxation treaties provide for the application of the exemption method 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 countries with which we have entered into such contracts, the Finance Ministry said in a statement.
The Minister also pointed out that in terms of 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. Foreign.
“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 from foreign employers.
The ICJ denied the news about the collection of taxes by Serbs abroad
The Foreign Ministry denied accusations by some national media that Serbian citizens doing temporary jobs abroad will be required to pay income tax accrued by foreign employers, not only in the country of temporary residence but also in Serbia. .
The Ministry’s statement affirms that these intoned texts, based on insufficiently researched facts, on a subject that, they point out, more directly concerns a large number of Serbian citizens abroad, generate unreasonable concern among our citizens.
They emphasize that this can be concluded from the increase in the number of inquiries sent to Serbian diplomatic and consular missions.
“We appeal to the residents of Serbia temporarily abroad not to pay attention to inaccurate and sensationally intoned texts on this subject, because when it comes to tax procedures for that category of our citizens, nothing will fundamentally change. relative to current practice “. It is stated in the announcement of the Ministry of Foreign Affairs.
They point out that in the hope that behind the irresponsible and inaccurate articles in the media on that topic there are not bad intentions, but misunderstandings, the Ministry emphasizes that Serbia is doing and will continue to do everything possible to help its diaspora in every way .
