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Serbia: Income tax treatment of employer share-based payments

Serbia: Tax treatment of employer share-based payments

A “rulebook” (as tax rules and regulations are known in Serbia) concerns the exemption from individual (personal) income tax for share-based payments made by employers to employees.


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The rulebook provides guidance concerning the treatment of shares transferred to employees without consideration or at a preferential price, and specifies in greater detail the conditions that must be satisfied for individual income tax purposes, including rules for documentation that must be provided as 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. Further, there are measures concerning:

  • When the employer is required to calculate and pay individual income tax and social security contributions
  • When the employee is required to settle a tax liability though self-assessment

Read an August 2019 report prepared by the KPMG member firm in Serbia

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