Salary Tax Progressivity – is there Room for Improvements ?

At the end of January, the Ministry of Finance invited representatives of business associations to submit their views regarding the possibility of a reform aiming to increase in the progressivity of salary taxation.

This raises a general question, is there room for improvements in Serbian taxation of remunerations paid to engaged persons? While it seems that the Ministry of Finance is only considering the progressivity of salary tax, the employers’ associations have their doubts about such an approach and advocate for increasing the non-taxable part of the salary.

But, have the employers missed the chance to raise their objections to the current state of play and to propose changes that should be in their interest? The associations should not be bound by the approach of the ministry and could be proactive in proposing further improvements that may contribute to the business environment in general.

JPM Partner Nikola Djordjevic is analyzing what could have been emphasized or proposed by the employers to the ministry in this article (in Serbian and English).

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