The Serbian Government at its session held on 15.05.2014 adopted the Draft Law on Amendments of the Law on Personal Income Tax Law and the Draft Law on Amendments of Law on Compulsory Social Insurance. It is anticipated that an employer who hires a new employees is entitled to a refund of part of the paid personal income tax (PIT) and social security contributions (SSC) for newly employed employees in the amount of 65 % to 75 % in the period from 01.06.2014 till 30.06.2016.

Among other, the following conditions are prescribed :

• By hiring new employees employer must increase the total number of employees compared to total number of employees on 31.03.2014.
• New employee prior to employment with employer, must be registered at the National Employment Service of Serbia as unemployed for at least six months, while for intern this term is at least three months.
• New employee prior to employment was not employed by an employer who is a related person with an employer who is obtaining PIT and SSC refund.
• Tax incentives can be used also by the employer who begin activities after 31.03.2014.

The amount of PIT and SSC that an employer has the right to refund, depend on the number of new employees: