Article
Tax Alert
The Decree on changes and amendments of the Decree on reimbursement of costs and severance pay of civil servants and public employees
On October 6th, 2015, the Government of the Republic of Serbia has passed the Decree on changes and amendments of the Decree on reimbursement of costs and severance pay of civil servants and public employees, published in the Official Gazette of RS, no. 84/2015 (hereinafter referred to as Decree). The Decree enters into force on October 14th, 2015.
The amendment of the Decree decreases the amounts of per diem for both local and international business trips.
1. Per diem for local business trip
Per diem for local business trips now amounts to RSD 150, instead of previous 5% of average salary in the Republic of Serbia.
2. Per diem for international business trip
Per diem for international business trips has all together been decreased to the amount of EUR 15 for each country, for every 24h spent abroad, regardless of the city or the country to which an employee is traveling to.
The amendment of the Decree will primarily impact the employers which have, through general act or employment contract, established the right of their employees to reimbursement of business trip expenses in the amount and under the conditions laid out in the Decree on reimbursement of costs and severance pay of civil servants and public employees.
The Decree will also impact non-taxable amount of per diem for international business trip prescribed by the Article 18 paragraph 1, point 2 of Personal Income Tax Law (“Official Gazette RS” no. 24/2001, 80/2002, …, 5/2015-adj. RSD amount). Aforementioned Article foresees that non-taxable amount for international business trip is set out in the Decree passed by the competent authority. Therefore, after the aforementioned Decree comes into force, amount above EUR 15 will be taxable.
Non-taxable amount for the local business trip per diems is RSD 2,168.
Amendment of the Decree has deleted the provisions which had stipulated decreases and increases of per diem for both local and international business trips. Respectively, the amount set out in this amendment shall not be decreased under any terms.