Članak
dec 31
Nazad

TAX INCENTIVES FOR KEEPING AND ATTRACTING HIGHLY SKILLED WORKERS: THE CASE OF SERBIA

Iva Ivanov

10.5937/AnaliPFB1904173I
SAŽETAK /

The recent increased migration of workers has posed a brain drain problem on countries, which lose their citizens to more developed countries offering better working and living conditions. Lowering the tax burden on highly skilled individuals has been one of the most commonly used incentives by both developed and developing countries. The Government of the Republic of Serbia has proposed several tax incentives for providing a more beneficial tax treatment for highly skilled employees with the aim of keeping and attracting them back. The first part of this paper illustrates the problem of emigration, the effects of emigration of highly skilled workers, and the effects of taxation on migration decisions. In the second part, the problem of brain drain and its breadth in the Republic of Serbia is addressed, and a detailed elaboration of newly proposed tax incentives is provided. Furthermore, the author proposes an additional tax incentive.

ČLANAK JE RASPOLOŽIV NA /
Engleskom  
REFERENCE /
  • Arslan, Cansan, Jean-Christophe Dumont, Zovanga Kone, Yasser Moullan, Caglar Ozden, Christopher Parsons, Theodora Xenogiani. 2014. A New Profile of Migrants in the Aftermath of the Recent Economic Crisis. OECD Social, Employment and Migration Working Papers No. 160. Paris: OECD Publishing.
  • Bosetti, Valentina, Cristina Cataneo, Elena Verdolini. 2015. Migration of skilled workers and innovation: A European Perspective. Journal of International Economics 96: 311–322.
  • Brauner, Yariv. 2015. High-Skilled Migration: A Tax Perspective. Chapter 1 in Taxation and Migration, edited by Reuven Avi Yonah, Joel Slemrod. Leiden, The Netherlands: Wolters Kluwer.
  • Burmann, Martina, Maria Hofbauer Perez, Vanessa Hoffmann, Carla Rhode, Sebastian Schworm. 2018. Highly Skilled Labour Migration in Europe. ifo DICE Report 1: 42–52.
  • Cerna, Lucie. 2018. European High-Skilled Migration Policy. Trends and Challenges. Ch. 5 in High-Skilled Migration: Drivers and Policies, edited by Mathias Czaika. Oxford: Oxford Scholarship Online.
  • CESifo. 2012. DICE Report 1/2012: 69–71.
  • Collins, Williams C., Iona Alexandra Horodnic. 2/2017. Tackling bogus self-employment: Some lessons from Romania. Journal of Developmental Entrepreneurship 22. https://www.researchgate.net/publication/316184349_Tackling_bogus_self-employment_some_lessons_from_Romania (last visited 29 September 29 2019).
  • Docquier, Frederic, Hillel Rapoport. 2009. Skilled Immigration: The Perspective of Developing Countries. 247–284 in Skilled Migration Today: Prospects, Problems and Policies, edited by Jagdish Baghwati, Gordon Hanson. New York: Oxford University Press, Inc.
  • Egger, Peter, Doina Maria Radulescu. 9/2009. The Influence of Labour Taxes on the Migration of Skilled Workers. The World Economy 32: 1365–1379.
  • European Commission. 2010. Europe 2020: A strategy for smart, sustainable and inclusive growth. Communication from the Commission COM(2010) 2020. Brussels.
  • European Commission. 2019. Serbia 2019 Report. SWD(2019) 219 final. https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/
  • -serbia-report.pdf (last visited 20 September 2019).
  • Fassio, Claudio, Fabio Montobbio, Alessandra Venturini. 2019. Skilled Migration and Innovation in European Industries. Research Policy 48: 706–719.
  • Fink, Carsten, Ernest Miguelez. 2017. The International Mobility of Talent and Innovation: New Evidence and Policy Implications. Introduction. 1–24 in the International Mobility of Talent and Innovation, edited by Carsten Fink, Ernest Miguelez. Cambridge: Cambridge University Press.
  • Fitzpayne, Alastair, Ethan Pollack. 2018. Worker Training Tax Credit: Promoting Employer Investments in the Workforce. Washington, D.C.: The Aspen Institute.
  • Gallup. 2017. Potential Net Migration Index. http://news.gallup.com/migration/interactive.aspx?g_source=link_newsv9&g_campaign
  • =item_245204&g_medium=copy (last visited 20 September 2019).
  • Halkyard, Andrew. 1/2013. Tax Incentives to encourage migration of skilled labour: another tax expenditure or a failure to tax residence? eJournal of Tax Research 11: 23–39.
  • Hawthorne, Lesleyanne. 2018. Attracting and Retaining International Students as Skilled Migrants. Ch. 10 in High-Skilled Migration: Drivers and Policies, edited by Mathias Czaika. Oxford: Oxford Scholarship Online.
  • Institute for Development and Innovations. 2019. The Costs of Youth Emigration. http://iri.rs/uploads/documents/troskovi-emigracije-mla
  • dih.pdf (last visited 25 September 2019).
  • Keery, Angela. 2017. Employee Incentive Structures That Work. Accountancy Ireland 65.
  • Kleven, Henrik J., Camille Landais, Emmanuel Saez, Esben A. Schultz. 2013. Migration and Wage Effects of Taxing Top Earners: Evidence from the Foreigners’ Tax Scheme in Denmark. Working paper 18885. Cambridge: National Bureau of Economic Research.
  • Kostić, Svetislav V. 2019a. Međunarodno oporezivanje u doba anksioznosti. Belgrade: University of Belgrade Faculty of Law.
  • Kostić, Svetislav V. 2/2019b. In Search of the Digital Nomad – Rethinking the Taxation of Employment Income Under Tax Treaties. World Tax Journal 11.
  • La Raine Ingram, Keisha. 2/2016. Attracting and Retaining Talented Professionals in the Baltic States. Societal Studies 8: 224–232.
  • Liebig, Thomas, Alfonso Sousa-Poza. 2005. Taxation, Ethnic Ties and the Location Choice of Highly-Skilled Immigrants. OECD Social, Employment and Migration Working Papers No. 24. Paris: OECD Publishing.
  • Lumina Foundation. 2016. Talent Investments Pay Off White Paper: Cigna Realizes Return on Investment from Tuition Benefits. https://www.luminafoundation.org/files/resources/talent-investments-pay-off-cigna-full.pdf (last visited 31 October 2019)
  • OECD. 2011. Taxation and Employment. Paris: OECD Publishing.
  • OECD. 2015. A New Profile of Migrants in the Aftermath of the Recent Economic Crisis. Paris: OECD Publishing.
  • OECD. 2017a. Perspectives of Global Development, International Migration in a Shifting World. Paris: OECD Publishing.
  • OECD. 2017b. Taxation and Skills. How Tax Systems Impact Skills Development in OECD Countries. Paris: OECD Publishing.
  • OECD. 2019. Migration Data Brief. Paris: OECD Publishing.
  • OECD. International Migration Outlook 2018. Paris: OECD Publishing.
  • Romer, Paul. 1/2000. Should the Government Subsidize the Supply or Demand in the Market for Scientists and Engineers? Innovation Policy and the Economy 1: 221–252.
  • Taube, Friedel. 2018. Germany’s new immigration laws open door for skilled labor. Deutsche Welle. 2 October. https://www.dw.com/en/germanys-new-immigration-laws-open-door-for-skilled-labor/
  • a-45734442 (last visited 20 September 2019).
  • The Government of the Republic of Serbia. 2017. Migration Profile of the Republic of Serbia for 2017. Belgrade.
  • Cabinet of the Minister in Charge for Demography and Population Policy, the Ministry of Education, Science and Technological Development. 2018. Migration of Students. http://www.mdpp.gov.rs/doc/Migra
  • cije-studenata.pdf (last visited 29 September 2019).
  • Wilson, John Douglas. 2009. Skilled Immigration: The Perspective of Developing Countries. 285–315 in Skilled Migration Today: Prospects, Problems and Policies, edited by Jagdish Baghwati, Gordon Hanson. New York: Oxford University Press, Inc.
  • York, Erica. 2019. Tax Treatment of Worker Training. Fiscal Fact 644.