Tax Highlights - October 2018
12 October 2018
SOCIAL SECURITY CONVENTION WITH CHINA ENTERED INTO FORCE
The Social Security Convention concluded between the Republic of Serbia and the People’s Republic of China was confirmed on 26th September 2018 and entered into force on 05 October 2018.
Under the provisions of the Convention, employees from China assigned to work in Serbia will be exempt from payment of pension, disability and unemployment insurance contributions in Serbia, while Serbian employees will be entitled the same treatment in China.
The legislation applicable to the employees in one contractual party assigned to perform work on the territory of another contractual party will be the legislation of the first contractual party for the period of 60 months, and can be extended for additional 24 months.
The Convention will help in avoidance of double calculation of insurance contributions and reduction in company costs of both countries. Finally, this will foster a development of bilateral economic and trade links.