With the amendments to the Law on Income Tax in Srpska, citizens will in the future be exempt from paying taxes for property acquired through inheritance and gifts.
The proposal of the law on changes and amendments to the Law on Income Tax was considered by the Government of RS yesterday at its 97th session.
These amendments proposed to abolish the taxation of income on the basis of gifts, which are donated by relatives in the first line, ie between parents and children, siblings, married and unmarried spouses, and adoptive parents and adoptees.
Let us remind you that the existing law has been criticized several times, because it considers inherited property to be capital gain, ie the fact that, for example, the gift of an apartment to children is taxed.
– For a long time, there have been demands in the RS to change this law in terms of abolishing certain taxes. We have made a change so that citizens in the first line of inheritance are exempt from paying capital gains tax in case of inheritance because those who inherit did not create that property in order to make a profit – explained the Minister of Finance Zora Vidović.
The tax on gifts between unrelated citizens, worth up to 10,000 KM, has also been abolished.
According to the estimates of the Ministry of Finance, these exemptions will annually collect fewer tax revenues in the budget by 1.2 million KM.