State, provincial and city incentives

STATE INCENTIVES

Law on Planning and Construction ("Official Gazette of the Republic of Serbia", No. 72/2009, 81/2009 – correction, 64/2010 – decision of the Constitutional Court, 24/2011, 121/2012, 42/2013 – decision of the Constitutional Court, 50/2013 – decision of the Constitutional Court, 98/2013 - decision of the Constitutional Court, 132/2014 and 145/2014)
Article 97 regulates the following:

Land development contribution is not being charged for publicly used facilities that are in public ownership, facilities for utility and other infrastructure, production and storage facilities, underground levels of structural engineering facilities (area intended for vehicle garaging, substations, power transformation stations, storage, laundry rooms, etc.), except for parts of the underground floors used for commercial activities, open-air children’s playgrounds, open-air sports courts and running tracks.

Incentives for employment
Decree on Terms and Conditions for atrracting Investments
The funds may be granted for financing investment projects in the manufacturing sector and the services sector which may be subject to international trade.
The level of funds which may be awarded is determined in accordance with the criteria set forth by the Decree on Terms and Conditions for Attracting Direct Investment, in relation to the eligible investment costs.

Conditions for awarding funds:
 
The investment is maintained on the same territory for at least five years after the project implementation, or at least three years for small and medium-sized companies;
The Beneficiary pays salaries 20% higher than the minimum wage.

Project implementation deadline: three years from the Contract signature, or at most five years after the project implementation, if the Commission approves such a request.

After achieving full employment, in accordance with the provisions of the Agreement on awarding of funds, the Beneficiary is required to regularly pay salaries to each employee in accordance with the regulations governing labor relations, which is at least 20% (twenty percent) higher than the minimum wage in the Republic of Serbia, as regulated for the month in which the salary is paid.

TAX INCENTIVES

Corporate Profit Tax Holiday
Companies are exempt from Corporate Profit Tax for a period of 10 years starting from the first year in which they report taxable profit, if they invest an amount exceeding €9 million in fixed assets, and employ at least 100 additional employees throughout the investment period.

For more information, please visit the following pages:
http://ras.gov.rs/invest-in-serbia

http://ras.gov.rs/sme-development

http://ras.gov.rs/export-promotion

AP Vojvodina Incentives

For more information, please visit the following page:

http://rav.org.rs/business-environment/incentives/

City Incentives for Investors
 
Incentives for employment: 200,000.00 RSD per person employed.
 
Incentives for decreasing the construction land development contribution:

Decision on determining the construction land development contribution ("Official Gazette of the Republic of Serbia", No.11/15)

Article 19 regulates the following:
Investors get a 30% discount on contributions paid at one go.
For construction of facilities significant for the City’s economic development, contribution paid at one go can be additionally discounted by up to 30%, with the consent of the City Council and on the proposal of the committee established by the City Council.