"Serbia is tax paradise for rich"

The average highest income tax rate in EU countries is almost double that in Serbia, Belgrade daily Blic writes. At the same time, a lower rate is applied only in Bulgaria, Romania, Slovakia, and the Czech Republic. "Serbia is tax paradise for rich" According to valid legislation, a Serbian citizen will pay about EUR 146,000 to the state out of each million they earn – half the figure that a Cypriot citizen would pay in taxes. In Denmark, the number would reach over half a million euros, says the newspaper. Sasa Radulovic, an independent investment consultant who has worked in Germany, Canada and the United States, believes that progressive taxing is an achievement of civilized society "equal to human rights and abolition of capital punishment". "I've never paid lower taxes than I do in Serbia. Compared to Germany, Canada and the U.S., Serbia is a tax paradise to me," said Radulovic. "Here, the more you earn, the lower your taxes get, while property taxes are almost negligible. This is not so in a single successful society," he continued, and explained that progressive taxing means there is the lowest figure exempt from taxing, which amounts to 10,000 dollars in Canada. "The tax rate to this figure is literally zero, while here, even salaries of EUR 150-200 are being taxed. A chance for a fundamental tax reform was missed in 2001, when a law was passed that virtually brought nothing new to the policy of taxing citizens' income. And this suits only those who are making profit off the transition," Radulovic warned. The newspaper also writes that according to the Tax Administration data, there were 18,727 persons who earned over RSD 1.64mn annually in 2007, while last year the number was 16,500. Only ten percent of the budget is filled by taxing the high earners, while OECD countries report an average of 25 percent of budget revenues collected in this way. According to available information, Serbia's richest citizen made EUR 3.3mn in 2007, and paid about half a million in taxes – three times less the sum they would have, for example, paid in Austria.

"Serbia is tax paradise for rich"

According to valid legislation, a Serbian citizen will pay about EUR 146,000 to the state out of each million they earn – half the figure that a Cypriot citizen would pay in taxes.

In Denmark, the number would reach over half a million euros, says the newspaper.

Saša Radulović, an independent investment consultant who has worked in Germany, Canada and the United States, believes that progressive taxing is an achievement of civilized society "equal to human rights and abolition of capital punishment".

"I've never paid lower taxes than I do in Serbia. Compared to Germany, Canada and the U.S., Serbia is a tax paradise to me," said Radulović.

"Here, the more you earn, the lower your taxes get, while property taxes are almost negligible. This is not so in a single successful society," he continued, and explained that progressive taxing means there is the lowest figure exempt from taxing, which amounts to 10,000 dollars in Canada.

"The tax rate to this figure is literally zero, while here, even salaries of EUR 150-200 are being taxed. A chance for a fundamental tax reform was missed in 2001, when a law was passed that virtually brought nothing new to the policy of taxing citizens' income. And this suits only those who are making profit off the transition," Radulović warned.

The newspaper also writes that according to the Tax Administration data, there were 18,727 persons who earned over RSD 1.64mn annually in 2007, while last year the number was 16,500.

Only ten percent of the budget is filled by taxing the high earners, while OECD countries report an average of 25 percent of budget revenues collected in this way.

According to available information, Serbia's richest citizen made EUR 3.3mn in 2007, and paid about half a million in taxes – three times less the sum they would have, for example, paid in Austria.