Serbia: Amendments to the Law on Social Insurance Contributions for founders and shareholders

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Serbia: Amendments to the Law on Social Insurance Contributions for founders and shareholders

janjic.jpg

vucenovic.jpg

Jelana Janjic


Gordana Vucenovic

Amendments to the Law on Social Insurance Contributions have brought about significant changes relating to the social insurance obligation of founders or members of a legal entity (company). With these new amendments the founders or the members (shareholders) of a legal entity will be able to pay social contributions in two ways, depending whether an employment arrangement is in place or not:

  • If the founder or a shareholder is not employed by the legal entity, the contributions should be paid based on the lowest monthly threshold specified by the social insurance contributions law, provided that the taxpayer is that very legal entity.

  • If the founder or a shareholder is employed by the legal entity, the contributions, as in the previous period, are being paid as a standard part of the payroll package.

Therefore, the most important change refers to the termination of the obligation of payment of social contributions for founders and shareholders based on the taxable profit of their company, based on the assessment of the Tax Administration.

The law furthermore defines and closer explains the issue of social contributions in the following cases:

  • Founder who works in his own company, but is at the same time employed by another company;

  • Founder of more than one companies; and

  • Pensioner as a founder or a member of legal entity.

Jelana Janjic (jelana.janjic@eurofast.eu) and Gordana Vucenovic (gordana.vucenovic@eurofast.eu)

Eurofast Global, Belgrade Office, Serbia

Tel: +381 11 3241 484

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Whether it be due to a fragmented advisory market or a rise in M&A, Italy’s frenetic hiring has not gone unnoticed by ITR’s Talent Tracker
The deal gives Azets 14 new partners and boosts its Swedish revenues to over $100 million; in other news, Svalner Atlas launched in Copenhagen
The tax technology company will be providing a free demonstration of its OTP software and offering best practice advice on whether to ‘buy or build’ on September 8
Johanes Glorinus Saragih of Indonesia’s Directorate General of Taxes outlines the nation’s delicate geopolitical situation, as it sits between a rock and a hard place with the US and pillar two
The law firm’s head of tax, trade and wealth management likens tax legislation to a complex puzzle, recommends a sturdy coffee mug, and explains why acronyms make tax cool
The global tax and accounting firm has appointed two experienced TP advisers from a New Jersey-based boutique
A lack of commitment from major jurisdictions and the associated compliance burden are obstacles facing the OECD initiative
Richard Gregg is no longer fit and proper to be a tax agent, said the TPB; in other news, MHA completed its acquisition of Baker Tilly South-East Europe
Recent Indian case law emphasises the importance of economic substance over mere legal form in evaluating tax implications, say authors from Khaitan & Co
PepsiCo was represented by PwC, while the ATO was advised by MinterEllison, an Australian-headquartered law firm
Gift this article