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

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

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

Amid an ever-changing tax environment, India’s advisory market is bustling with competition ahead of the 2025 World Tax rankings and ITR Awards
The deal comes after PwC had accused Paul McNab of using confidential information; in other news, McDermott hired a new London tax head from a US rival
Looking at transfer pricing simplification is “obviously helpful”, but it should be done in line with current standards, a senior government figure reportedly said
The UK Government’s plans to close the tax gap via increased HM Revenue and Customs investment have failed to impress local tax advisers
Under the merged scheme for R&D tax relief introduced last year, rules on contracted out R&D have changed. James Dudbridge argues for a proactive approach when reviewing companies’ commercial arrangements
Cultural nuances could account for tax advisers’ perceived poor cost management, a local partner told ITR
Updated rules represent a significant shift in the Luxembourg TP landscape and emphasise the need for robust arm’s-length calculations, says Vanessa Ramos Ferrin of TransFair Pricing Solutions
KPMG Law US revolves around contract managed services and the US is the largest market for that, Stuart Bedford tells ITR in an exclusive interview
The US law firm’s tax counsel tells ITR about inspirations from a ‘legendary’ German tax scholar, perfecting riesling wine and what makes tax cool
Wopke Hoekstra also swore the EU would ‘hit back harder’ if faced with a trade war; in other news, a UK watchdog has launched an investigation into an audit completed by MHA
Gift this article