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

ITR understands that UK Chancellor Rachel Reeves will announce a consultation on the proposed financial reward scheme, which had left advisers fretting
The long-running dispute centres on Medtronic’s use of the comparable uncontrolled transaction TP method; in other news, Paul Hastings and FTI Consulting both made double tax hires
The boutique Australian firm’s TP award recognition proves that world-class advisory services aren’t limited to the ‘big four’, the firm’s founder tells ITR
Canadian and Indian dual VAT models have been a source of inspiration for the Brazilian model, but the latter has unique and innovative features, the OECD paper claimed
More sophisticated use of technology, heightened TP scrutiny and stricter filing requirements are making South African Revenue Service audits a formidable challenge
The hire of Doug Wick expands Baker McKenzie’s state and local tax practice and adds to the firm’s growing ex-IRS expertise
One year after Nuwaru joined the WTS network, leaders James Jobson and Matthew Missaghi reflect on the firm’s mission to offer mid-tier pricing but deliver top-tier results
Join ITR's Head of Research, John Harrison, for an overview of key dates, new developments, best practices, and more for next year’s research cycle
The president’s tariff regime has already caused misery for taxpayers. Losing at the Supreme Court would mean it was all for nothing
The US itself was the biggest loser of tax revenue to American multinationals’ profit shifting, the Tax Justice Network reported; in other news, firms made key tax hires
Gift this article