Soon new laws on investment works that will organize payment of taxes on building works

Government of Serbia will start designing of the new law on investment works that will regulate payment of taxes on building works. This was announced yesterday (February 11, 2008) by the people from the cabinet of Deputy Prime Minister of Serbia, Božidar Đelić.

As it is pointed out, that was agreed on at the meeting of the representatives of building industry and industry of building materials with Đelić and Minister of Trade and Services, Predrag Bubalo. That law should enable avoidance of double taxation and taxation of the salaries of people who work abroad, which would stimulate Serbian companies that are registered abroad to start working in Serbia.

It was pointed out at the meeting that local building companies, in addition to engagement in works on Serbian market, could return to traditionally strong markets of former Soviet republics, Near East and north Africa.

It is estimated that the merger of two existing funds for financing and insurance of export deals (AOFI and SMECA) and their additional capitalization worth 50m USD will enable more favorable financing of export deals.

It is also necessary to issue licenses to all building companies, which would enable domestic companies to be the contractors for building works in Serbia and to compete on the tenders and for public procurements. It has been agreed that the settlement of old debts of the state towards companies from this sector should be accelerated.

Building industry and the industry of building materials in Serbia have about 120,000 workers, while the annual scope of services abroad is worth 300m EUR.