Tax Exemptions for Beginner Entrepreneurs in Serbia Cover Image

Пореска ослобођења за почетнике у пословању у Србији
Tax Exemptions for Beginner Entrepreneurs in Serbia

Author(s): Suzana Dimić
Subject(s): Law, Constitution, Jurisprudence, Public Finances, Fiscal Politics / Budgeting
Published by: Правни факултет Универзитета у Источном Сарајеву
Keywords: Tax exemption;Income tax;Compulsory social security contributions;
Summary/Abstract: In the conditions of large movements of young people in search of employment, it has proven necessary to take measures to create a favorable business environment for beginner entrepreneurs. In addition to the numerous administrative and financial obstacles that may be encountered in the initial phase of running a business, the tax system can be a significant burden. Hence, an increasing number of countries are opting for the introduction of various forms of tax incentives, which achieve tax relief for certain factors of production. As the fiscal burden on labor affects the demand for labor, and thus indirectly employment, measures are most often taken to exempt from paying payroll taxes and contributions for compulsory social insurance. Also, in order to provide beginner entrepreneurs with easier access to capital, which they lack in the initial phase of running a business, tax incentives are introduced for potential investors in the form of a tax credit. Significant positive effects are expected from the introduction of such tax reliefs in the tax system of Serbia, because the problem of youth unemployment in recent years is not only a social and economic problem, but also a major demographic problem.