Companies advancing their international operations into Serbia open a wealth of opportunities and the chance of further international expansion into east and south-eastern Europe, the Balkans and further afield.
Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.
Foreign companies intending to hire staff and run their payroll in Serbia must establish a legal entity. The most popular choice is to open a limited liability company, known as a Društvo sa Ograničenom Odgovornošću, abbreviated to DOO. This company type requires minimum share capital of €1 and it must be registered with the Business Registers Agency (BRA), part of the Ministry of Economy.
Taking this step before running payroll in Serbia requires an in-depth knowledge of company, employment, and taxation laws, which changed in January 2022 – and keeping up to date with these changes.
However, there is an alternative and simpler route. Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then put into action our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns, and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.
Outsourcing your payroll in Serbia will streamline your operations by dealing with the following:
- Obtaining employees’ Tax Identification Number (TIN) from the Tax Administration (Poreska Uprava).
- Registering with the Social Insurance Institute (Zavod za Socijalno Osiguranje, ZSO).
- Mandatory registration for health insurance with the Fund for Disability and Pension Insurance via the Central Registry of Compulsory Social Insurance.
- Filing forms for remitting tax with the Tax Administration.
- Withholding and remitting tax and social insurance contributions to the relevant authorities.
- Compiling Personal Income Tax (PIT) returns comprising all income from employment, including bonuses and overtime, as well as benefits in kind.
- Filing returns for income from business, investments, property, and capital gains at varying rates between 10 – 20%.
- Prepare employment contracts, which are generally open-ended or fixed-term and can include a probation period.
The above checklist highlights why most foreign companies expanding into Serbia’s challenging business environment hand their payroll to EOR experts such as Bradford Jacobs. By outsourcing payroll, your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing.
You focus on your goals and expansion, free of any concerns over payroll. Questions? We have the answers. Contact Bradford Jacobs now.