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.
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
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.