On 12 July 2019 the Ministry of Finance adopted the Rulebook on Personal Income Tax Exemptions for Share Based Payments to Employees Acquiring Shares Without Consideration or at Preferential Price (Rulebook). This Rulebook was adopted based on amendments to the Personal Income Tax Law that went into effect on 16 December 2018.
On 12 July 2019 the Ministry of Finance adopted the Rulebook on Personal Income Tax Exemptions for Share Based Payments to Employees Acquiring Shares Without Consideration or at Preferential Price (Rulebook). This Rulebook was adopted based on amendments to the Personal Income Tax Law that went into effect on 16 December 2018.
The Rulebook specifies in greater detail conditions that need to be fulfilled for a personal income tax deduction, including documentation that must be provided as proof of fulfillment (evidence). Shares received directly from a Serbian employer, as well as shares acquired by employee without consideration or at a preferential price from a Serbian or foreign related party of the employer are covered by the Rulebook. In this sense, both situations are covered: when the employer is required to calculate and pay personal income tax and social security contributions, as well as when the employee is required to settle a tax liability though self-assessment.
The Rulebook specifies:
The Rulebook is effective as of 20 July 2019.
KPMG support
In view of the new rules and possibilities for tax exemptions, KPMG professionals are at your disposal to assist with:
For previous editions of KPMG Tax Alerts please visit the following web page:
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