Employ Candidates Compliantly in Serbia

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  1. Overview: Serbia
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
Other counrtries

Global PEO and Payroll in Serbia

Getting your business up-and-running in Serbia can be challenging, especially if you do not speak the native language. Establishing your own business entity in Serbia is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Serbia, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Serbia, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Serbia

Navigating the Serbian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Serbian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Serbia without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Serbia. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Serbia

Employment related taxes

Personal income tax (PIT). Residents are taxable on their worldwide income, whereas nonresidents are taxable on their Serbian-sourced income and worldwide income related to their work in/for the Republic of Serbia.

Tax rates are flat, and the definition of the taxable base depends on the type of income.

Annual tax is the additional tax in Serbia. If the individual is a Serbian tax resident, one is subject to Serbian annual tax on one’s net worldwide income exceeding a prescribed threshold, whereas Serbian tax nonresidents are liable to report their Serbian-sourced annual net income.

The progressive rates apply depending on the income level.

Nontaxable payments. Nontaxable amounts in Serbian currency (RSD) for purposes of personal income tax are being adjusted for annual consumer price index in the year preceding the year for which the alignment is done, based on data of the authority responsible for statistics.

Social security contributions. Social security contributions are calculated and withheld by the employer from the salary paid to an employee, up to a specified cap. These contributions are also payable by the employer on top of the employee’s gross salary. The amount borne by the employer is treated as an operating cost, while the portion payable by the employee is taken from gross salary.

Payroll Cycle in Serbia

Payroll – Frequency Monthly

Non-payroll taxes in Serbia

The standard VAT rate is flat for most taxable supplies. A reduced VAT rate applies to basic foodstuffs, daily newspapers, medicines, publications, public transportation services, utilities, etc.

In addition to these tax rates, there is a 0% tax rate with the right of deduction of the input VAT that applies to the export of goods, transport and other services directly related to exports, international air transport, etc.

A 0% tax rate without the right of deduction of the input VAT applies to trade in shares and other securities, insurance and reinsurance, and the lease of apartments, business premises, etc.

A nonresident that carries out taxable supply of goods and services in Serbia is obligated to appoint a fiscal representative and to register for VAT in Serbia, irrespective of the amount of the turnover realised in the previous 12 months.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Serbia

Compensating your local and expat workforce in Serbia and closely adhering to Serbian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Serbian labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Serbia by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Serbian laws. To get the latest updates on taxation in Serbia and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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