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Serbia: Tax treatment of travel expenses of employees

Serbia: Tax treatment of travel expenses of employees

The Ministry of Finance issued an opinion (no. 011-00-12/2019-04) providing an exemption from individual (personal) income tax for compensation paid with regard to expenses for employee travel to and from work is not available without a valid accounting document.


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This can also have corporate income tax implications for the employer. When an employer lacks a valid accounting document, compensation of an employee’s travel expenses to and from work will be considered to be undocumented expenses pursuant to article 7a item 1) of Serbia’s corporate income tax law.

Read a March 2019 report prepared by the KPMG member firm in Serbia

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