Looking to hire in Serbia

All expenses other than business trip travel and accommodation are taxable in Serbia, and a gross-up is automatically applied so the employer bears the tax cost. Supporting documentation must include the employer’s information, and original receipts and invoices for business trip expenses must be sent to the employer for non-taxable reimbursement.

Communication and workspace costs such as internet, cell phone, and coworking space can be reimbursed, but they are treated as taxable and grossed up. Employees should provide a tax invoice or receipt showing when and where they paid, the amount, the provider or merchant, and what service was purchased.

Equipment and supplies needed for work, including laptops, software subscriptions, office supplies, postal charges, and other equipment, are reimbursable but taxable with a gross-up. Reimbursements require a tax invoice or receipt that shows the date, amount, merchant or service provider, and a description of the purchase or service.

Business travel expenses for flights (including luggage fees), accommodation, visas for travel, and business trip travel insurance can be reimbursed on a non-taxable basis when supported by proper invoices or receipts, and for accommodation, Airbnb reservations are not accepted. Local transport and vehicle-related costs such as taxi, train, car rental, public transport, parking or tolls, and fuel are reimbursable but taxable with a gross-up, based on tax invoices or receipts that show the date, amount, and merchant, plus a description or employee name where required.

Meal and entertainment costs, whether for employees themselves, meals with business partners or clients, or groceries, are reimbursable but treated as taxable with a gross-up. Employees must attach a tax invoice or receipt that shows the date, amount, and the merchant or service provider.

Other business-related costs such as training, courses, books, promotion items, and gifts can be reimbursed but are taxable with a gross-up. These reimbursements must be supported by a tax invoice or receipt showing the date, amount, and merchant or service provider, and for training, courses, books, and promotion items, a description of the purchase or service is also required.

For any business trip that includes an overnight stay, specific business travel forms must be completed to document the dates, destination, and business purpose. Travel, accommodation, and meal expenses from such trips may be taxed if submitted without the required forms.

Per diems are not available for employees in Serbia. Bonuses, including contractual and discretionary payments, incentives, and commissions, are taxed as regular income with applicable social security contributions, and Serbia uses a flat tax rate with withholding at source, which can increase the withholding in pay periods that include bonus payments.