KNJIGOVODSTVENE USLUGE I PORESKO SAVETOVANJE

The first question posed when establishing a company is: shall I be an entrepreneur, or a company (the most common form is LLC – a limited liability company)?

To choose without difficulty, let’s look at the basic differences between the liabilities of a company and entrepreneur.

An entrepreneur is a private individual personally liable to the full extent of his/her assets for the liabilities of the business, the property acquired by business activities, but also with other assets acquired apart from the business, while in case of a LLC company, the owner is liable only to the assets owned by the company to its liabilities. On the other side, the administration work is of larger volume with LLC, which very often determines the initial form of business to be entrepreneurship.

A great dilemma arising in practice, especially with entities initiating the process of establishing own company is whether each entity registered in the Companies Register is automatically registered within VAT system,and respectively, whether such entity is VAT obligor??  Registration in the VAT system may be obligatory and voluntarily as well.

A legal entity registered in a Companies Register becomes a payer of a lot of taxes prescribed by a state. Please find below an overview of all the taxes to be paid by a company.

1. ECO FEE is a tax paid by all legal entities. The amount to be paid depends on the size of a company, but also on the impact the company’s activity has on the environment. It ranges from 5,000.00 RSD up to 2,000,000.00 RSD.  2.Communal fee displaying business names on the business premises, known as communal fee, is defined by the Law on Financing of Local Self-Government. A company, according to the Law, shall present each displayed business name or first name referring to a certain activity performed by a legal entity or private individual. A communal fee shall be paid when the turnover exceeds 50,000,000.00 RSD. The amount shall depend on the zone the company is located in, but also on the activity and size of the company. Amounts range from 6,000.00 to 680,000.00 RSD.

3. Property tax shall be paid in case a company owns real estate as its property. A property tax rate is 0.4% and shall be calculated based on the assessed property value.

4.PDV-if a tax payer is included in the VAT system, it shall be obliged to pay VAT amount at a general tax rate of 20% or special tax rate of 10%..

5. Corporate taxCorporate tax shall be paid at the rate of 15%, if a company attains profit. For example, the attained profit is 100,000 RSD so the amount of corporate tax is 15,000 RSD on an annual basis.

6.If a company has employees, it shall be obliged to pay payroll taxes.

For each month of work, an employee is paid a salary, and what is paid on to his/her account or in cash presents a net salary. A net salary consists of the following:

–basic salary (consisting of the number of working hours in a month times the price of work) and

paid benefits (all the benefits belonging to an employee as prescribed by the law, meal allowance, paid annual holiday, paid years of service, paid work on public holidays, paid night work or overtime work, and other).

A gross salary is an amount of a salary agreed with employees. A gross salary shall consist of net salary + contributions for obligatory social insurance + tax.