Belgrade, Sept. 10, 2002 - Serbian Minister of Finance and Economy Bozidar Djelic announced today that this ministry was going to propose cut in profit tax for companies, from present 20 per cent to 14 per cent.
‘This will mean the lowest profit tax rate in whole Europe and, more or less, the whole world’, said Djelic to the journalists at the second Business Conference with Serbian government. The meeting is held in Belgrade ‘Hyatt’ hotel, organized by ‘Economist Conference’.
Djelic announced the adoption of a new package of investment stimulations, among others also tax enticements. These measures should be adopted on 26 September at a special session of Serbian government and later ratified by the parliament in October. Minister announced even bigger tax stimulations for investments in companies and new jobs.
‘We will suggest that the tax credit be 20 per cent of the investments in basic means, which is the highest level seen in Europe’, explained Djelic, adding this benefit would enable usage of the tax credit within 10-year time limit.
‘This new package of tax benefits will further decrease yearly income tax for citizens, with already low current rates of 10, 15 and 20 per cent’, said Djelic, adding that the rates would be cut down to 10 per cent. That way they would stand as Europe’s lowest income tax rate and on of the world’s lowest rates.
‘Speaking of oppressing grey economy, a new law on tax procedure is prepared. This law will give much broader authorization to the tax administration to convey more intensive control in grey economy area’, said Djelic.
‘We will no longer have various control institutions like tax administration, retired and disabled workers’ fund and work market, because they would all be united in a single control institution’, said Djelic. He announced legal changes in areas of intellectual property theft, show business, real estate market and all areas infamous for their ties with the grey economy.
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