Serbian government abolishes incentives for employers hiring newly settled individuals

The Serbian government has adopted a Regulation terminating the validity of the Regulation on the criteria for awarding incentives to employers who hire newly settled individuals in the country, citing an increase in both the number of employers applying for subsidies and the number of individuals settling in Serbia.

According to the press release, this has made it impossible to plan obligations for future years in line with the current Regulation, which stipulates that funds are to be disbursed up to the amount of available budget resources, in accordance with the Budget Law for the years in which the incentives are paid.

It is added that employers who hire newly settled individuals may still exercise the right to tax relief in the form of a reduction in the taxable wage base for newly settled taxpayers, in accordance with the Law on Personal Income Tax.

At the same session, a Regulation was adopted specifying the conditions and method of exercising the right to financial support for the construction, co-purchase, or purchase of a family residential house or flat on the basis of the birth of a child. This Regulation clarifies the required documentation related to loans, application procedures, deadlines, and other details.

The Regulation also states that the necessary funds for this year have been secured, while those for subsequent years will be planned in the state budget.

Additionally, several draft laws were adopted regarding the ratification of international agreements, including those with North Macedonia – on establishing joint controls at the Preševo (Serbia) and Tabanovce (North Macedonia) border crossings for international road traffic, and on defence cooperation between the Government of Serbia and the Government of Ghana, as well as a draft law confirming the Agreement on Defence Cooperation between the Government of Serbia and the Government of Eswatini.

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