According to Article 15v paragraph 11 of the Personal Income Tax Law ("Official Gazette of RS", No. 24/01, 80/02, 80/02 - other law, 135/04, 62/06, 65/06 - correction, 31/09, 44/09, 18/10, 50/11, 91/11 - US, 93/12, 114/12 - US, 47/13, 48/13 - correction, 108/13, 57 / 14, 68/14 - other law, 112/15, 113/17, 95/18 and 86/19“), the Minister of Finance has adopted:

RULEBOOK

on the manner of exercising the right to the  salary tax base reduction for a newly settled taxpayer ("Official Gazette of RS", No. 137 of November 13, 2020).

Article 1

This Rulebook prescribes the manner of exercising the right on reduction of the salary tax base for a newly settled taxpayer, for the salary he earns based of employment for an indefinite period with a qualified employer, according to Article 15v of the Personal Income Tax Law.

Article 2

A qualified employer referred to in Article 15v paragraph 2 of the Law, who establishes an employment with a newly settled taxpayer, shall make a written statement confirming that prior to employment with a qualified employer, the newly settled taxpayer was not employed by any employer who would be considered a related party to that qualified employer in the moment of acquiring the status of a newly settled taxpayer according to Corporate Income Tax Law.

In the case of a change of qualified employer when the newly settled taxpayer concludes an employment contract with another qualified employer, that qualified employer, as well as any subsequent qualified employer with whom the newly settled taxpayer concludes an employment contract,  makes a written statement confirming that the newly settled taxpayer prior to the establishment of an employment with a qualified employer, was not employed by any employer who, in the moment of acquiring the status of a newly settled taxpayer, would be considered a related party with that qualified employer.

A qualified employer referred to in Article 15v, paragraph 2 of the Law, who establishes an employment with a newly settled taxpayer, obtains a written statement with whom that newly settled taxpayer confirming that before establishing employment with a qualified employer he was not employed, ie if he was employed by one or more employers he obtains a written statement stating the full name and seat of each employer and the state whose taxpayer is the employer by whom he was employed during the period of work in another state.

Article 3

The qualified employer referred to in Article 15v, paragraph 3 of the Law, who establishes an employment  with the newly settled taxpayer, obtains from the newly settled taxpayer:

  1. a certificate on the change of permanent/temporary residence in the period not exceeding 25 years preceding the year in which the newly settled taxpayer, a citizen of the Republic of Serbia establishes an employment with a qualified employer, issued by the competent authority in the Republic, from which it may be determined that the person has had permanent/temporary residence in the territory of the Republic for at least three years, or a certificate of permanent/temporary residence change of the spouses and their joint minor children, issued by the competent authority in the Republic, from which it may be determined that the spouse and children of the taxpayer had a permanent/temporary residence in the territory of the Republic for at least three years in the specified period of 25 years; or
     
  2. proof of approved temporary/permanent residence in the territory of the Republic for a foreign citizen, according to the regulations governing temporary residence and permanent residence of a foreign citizen in the Republic, or such proof for a spouse and their joint minor children, from which it may be determined that that person has been granted permanent / temporary residence in the territory of the Republic for at least three years in the period not exceeding 25 years preceding the year in which the newly settled foreign national taxpayer establishes an employment with a qualified employer.

Article 4

The period of stay referred to in Article 15v, paragraph 4, item 1) of the Law shall be documented by the newly settled taxpayer who establishes an employment with a qualified employer by submitting documents to the qualified employer, as follows:

  1. a certificate of a permanent / temporary residence change in the Republic, issued by the competent authority in the Republic, from which it may be determined that the person did not have a permanent / temporary residence in the territory of the Republic in the period of 24 months preceding the day of concluding the employment contract with a qualified employer; or
     
  2. a certificate of permanent / temporary residence in another state, issued by the competent authority of another state, or an excerpt from the relevant register of a foreign competent authority, from which it may be determined that the person had a permanent / temporary residence in another state in the period of 24 months preceding the day of concluding employment contract with qualified employer; or
     
  3. a certificate of a foreign employer of employment in another state and work on the territory of another state, from which it may be determined that the person worked for that foreign employer on the territory of another state in the period of 24 months preceding the day of concluding the employment contract; or
     
  4. proof of the competent social security authority of another state from which it may be determined that that person was insured in accordance with the regulations of that other state in the period of 24 months preceding the day of concluding the employment contract with a qualified employer.

In addition to the documents referred to in paragraph 1 of this Article, the newly settled taxpayer submits a written statement to the qualified employer with whom he establishes employment, that in the period of 24 months preceding the day of concluding the employment contract with the qualified employer he mostly resided in one or more other states, and whose statement also contains information about the state or states in which he resided, and that the person has not resided continuously or intermittently on the territory of the Republic for more than 366 days in the period of 24 months preceding the day of concluding the employment contract with a qualified employer.

Article 5

The period of stay referred to in Article 15v, paragraph 4, item 2) of the Law shall be documented by the newly settled taxpayer who establishes an employment with a qualified employer by submitting documents to the qualified employer, as follows:

  1. certificate of permanent/temporary residence change in the Republic, issued by the competent authority in the Republic, from which it may be determined that the person did not have a permanent/temporary residence in territory of the Republic in the period of 12 months preceding the day of concluding the employment contract with a qualified employer; or
     
  2. a certificate of a permanent / temporary residence in another state, issued by the competent authority of another state, or an excerpt from the relevant register of a competent authority of another state, from which it may be determined that the person had a permanent / temporary residence in another state in the period of 12 months preceding the day of concluding an employment contract with a qualified  employer.

In addition to the documents referred to in paragraph 1 of this Article the newly settled taxpayer submits a written statement to the qualified employer with whom he establishes employment that in the period of 12 months preceding the day of concluding the employment contract with the qualified employer he mostly resided in another state. The statement also contains information about the state or states in which he resided, and that he has not continuously or intermittently resided on the territory of the Republic for more than 183 days in the period of 12 months preceding the day of concluding the employment contract with a qualified employer.

In addition to the documents from paragraph 1 and 2 of this Article, the newly settled taxpayer submits to the qualified employer with whom he establishes employment, a certificate, diploma or certificate of completed secondary or high education or completed postgraduate or first, second or third degree studies in another country or a certificate of another type of professional training in another state, due to which he stayed outside the territory of the Republic continuously or intermittently for more than 183 days in the period of 12 months preceding the day of concluding the employment contract with a qualified employer.

Article 6

According to the Article 15v, paragraph 7 of the Law, the newly settled taxpayer who establishes an employment with a qualified employer, submits to the qualified employer:

  1. proof of his own right of ownership or the right of ownership of his family members on residential real estate or lease of residential real estate on the territory of the Republic;
     
  2. a written statement confirming that in the period from 183 days before the conclusion of the employment contract with a qualified employer until the expiration of 183 days after the conclusion of that contract, he settled in the territory of the Republic together with his spouse and joint minor children, with the intention to resides for 183 or more days in any period of 12 months after the conclusion of the employment contract with a qualified employer during the period of exercising the right to reduction of the tax base from the Article 15v of the Law;
     
  3. a certificate of permanent / temporary residence in the Republic for a person who is a citizen of the Republic, issued by a competent authority in the Republic;
     
  4. proof of approved temporary / permanent residence in the territory of the Republic for a person who is a foreign citizen, as well as such proof for spouse and joint minor children, issued by the competent authority in the Republic, for the period during the exercise of the right to reduction of the tax base from the Article 15v of the Law.

The document from paragraph 1 item 3) and 4) of this Article, the newly settled taxpayer submits to the qualified employer for the first time within 180 days from the day of concluding the employment contract with the qualified employer, and after that in the period of exercising the right to reduction of the tax base from the Article 15v of the Law, he submits at least once in a period of 12 months.

Article 7

The qualified employer is obliged to obtain the documentation from Articles 2-6. of this Rulebook no later than the day when the newly employed taxpayer is paid the first salary based of which the right to reduction of the tax base is exercised in accordance with Article 15v of the Law, except for the documentation which the qualified employer is obliged to obtain later.

In case of change of qualified employer when the newly settled taxpayer concludes an employment contract with another qualified employer, such qualified employer, as well as any subsequent qualified employer with whom the newly settled taxpayer concludes an employment contract, is obliged to obtain the documentation from Articles  2–6. of this Rulebook which refers to the fulfillment of conditions in relation to the period preceding the day of concluding the employment contract with the first qualified employer and the documentation which in accordance with the provisions of this Rulebook, the qualified employer is obliged to subsequently obtain during the exercise of the right to reduction of the tax base from Article 15v of the Law.

The documentation from Articles 2–6. of this Rulebook, which refers to the fulfillment of conditions in relation to the period preceding the day of concluding the employment contract with the first qualified employer, the qualified employer from the paragraph 2 of this Article may obtain from the newly settled taxpayer if he has his own copies of such documentation, original documents or certified copies of the original documents , which he documented to the first qualified employer.

Article 8

The documentation from Articles 2–6. of this Rulebook the qualified employer submits as the original or as a certified copy of the original document, at the request of the competent tax authority,

Article 9

This Rulebook enters into force on the day following the day of its publication in the "Official Gazette of the Republic of Serbia".