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Tax Alert, November 2023

The Law on Amendments and Supplements to the E-invoicing Law

The National Assembly of the Republic of Serbia has adopted the Law on Amendments and Supplements to the E-invoicing Law (hereinafter: the Law), which stipulates a new obligation related to the electronic recording of input VAT.

More information about this Law, you may find here.

Tax alert, July 2023

Submission of application for environmental protection and improvement for 2023

The fee for the protection and improvement of the environment is regulated by the Law on Fees for the Use of Public Goods and the following by-laws:

1) Regulation on the criteria for determining activities that affect the environment according to the degree of negative impact on the environment caused by the performance of activities, the amounts of fees;

2) Rulebook on the appearance, content and method of submitting an application with data relevant for determining the fee that the person liable for the fee for protection and improvement of the environment is obliged to submit to the authority of the local self-government unit, i.e. the application that the person liable for the fee for protection and improvement of the environment is obliged to submitted to the competent authority of the local self-government unit, i.e. the city administration, monthly for the collection and delivery of goods during the month.

This year's fee is determined according to the unchanged rules compared to the previous year.

For more information, please visit the following link.

Tax alert, June 2023

The Ministry of Finance of the Republic of Serbia adopted the unified Rulebook on electronic invoicing

The Ministry of Finance of the Republic of Serbia has adopted the unified Rulebook on electronic invoicing on June 8, 2023, which shall enter into force as of July 1, 2023.

For more information, please visit the following link.

Tax alert, May 2023

Deadlines For Delivery Of Financial Statements 

The reports for the year 2022 are submitted within the deadlines prescribed by Article 44 of the Accounting Law:

  • the regular annual financial report (RGFI) and the Statement of Inactivity are submitted no later than March 31, 2023.
  • the consolidated financial report (KGFI) is submitted by May 3, 2023, given that the last day of the deadline - April 30, 2023. falls on a non-working day.
  • extraordinary financial report - within 60 days from the balance sheet date.

Along with the financial reports, those liable for the audit shall submit the documentation prescribed by Article 45 of the Law within the following deadlines:

  • documentation with the RGFI no later than June 30, 2023.
  • documentation with KGFI no later than July 31, 2023.

 

For more information, please visit the following link.

Tax alert, May 2023

Reminder For Legal Entities  - Registration Through The Portal EID.GOV.RS

We hereby wish to inform you that all those who wish to use electronic services such as eSubmission of financial reports, eRegistration of bidders, eRegistration of D.O.O. and entrepreneurs, eBuilding permits, eRegistration of real owners and others, which until now had a user APR account created through the System for centralized user registration from June 1, 2023, will no longer be able to access these portals in this way.

For more information, please visit the following link.

Tax alert, March 2023

The non-taxable amount of the annual income of individuals liable for the annual personal income tax for the year 2022 is equal to three times the amount of the average annual salary per employee in the Republic of Serbia paid in the year for which the tax is determined and amounts to 3,719,376 dinars (3 x 1,239,792 dinars). The average annual salary in 2022 was published in the "Official Gazette of RS" no. 15/23.

For more information, please visit the following link.

Tax alert, February 2023

The Ministry of Finance of the Republic of Serbia has issued the Rulebook on Amendments and Supplements to the Rulebook on VAT (hereinafter: “the Rulebook”), which was published in the Official Gazette of the RS No. 7/23, on January 31, 2023, and which came into force on February 1, 2023.

The main reason for adoption of this Rulebook was the need to harmonize the rules for issuing of invoices with the regulations in the field of electronic invoicing.

For more information, please visit the following link.

Tax alert, December 2022

Amendments to the VAT Law, the Law on Electronic Invoicing and the Regulation on Determining Activities in Which There Is No Obligation to Record Retail Transactions Using an Electronic Fiscal Device are adopted

At the session held on December 9, 2022, the National Assembly of the Republic of Serbia adopted the Law on Amendments to the VAT Law. With the adoption of the mentioned Law, additional harmonization with European legislation, but also with the legislation regulating the field of e-invoicing, was carried out. The respective changes will enter into force on January 1, 2023.

For more information, please visit the following link.

Tax alert, December 2022

Announcements of changes affecting the salary calculation from January 1, 2023

We hereby inform you that in the "Official Gazette of RS", no. 130/22, the information on the average salary in the Republic of Serbia for the period from October 2021 to September 2022 was published.

This information is used to determine the highest and lowest monthly base for calculating and paying contributions for mandatory social insurance in 2023.

The average salary in the Republic of Serbia for the period October 2021 - September 2022 is 100,072.00 dinars.

For more information, please visit the following link.

Tax alert, December 2022

Contests within the Program “Horizon Europe 2023”

We hereby inform you that the European Commission has announced that in the course of 2023, it will call for contests for 16 new projects within the “Horizon Europe 2023” Program, which will provide grants from the funds of the European Union.

It was announced that the contests will be intended for game developer studios, innovation agencies, companies from the gaming industry, games research institutions, higher education institutions providing degree programs on game development, and other entities that contribute to the development of video games.

Please note that the amount of grants intended for contests is not yet known, given that the contests are still in the drafting phase, but the amounts are expected to be significant.

For more information, please visit the following link.

Tax alert, December 2022

Funding Call „Creative Europe 2023“

Video Games And Immersive Content Development

We hereby inform you that the call, within the Creative Europe Program, has been published for funding projects related to the video game industry.
The objective of this call is to support video game development and interactive immersive experiences with the potential to reach global audiences, as well as improvement of the competitiveness of the European video game industry and other companies that produce immersive content.

The total budget for this call is EUR 6.000.000, while the maximum possible rate of co-financing is 50% of total eligible costs. The maximum grant per project is EUR 150.000.

Projects should not normally exceed 36 months (extensions are possible if duly justified and through an amendment).

For more information, please visit the following link.

Tax alert, November 2022

Public Call for the Early Development Program (MINI GRANTS PROGRAM) and Public Call for the Innovation Co-financing Program (MATCHING GRANTS PROGRAM)

We hereby inform you that the Innovation Fund of the Republic of Serbia (hereinafter: the Fund) has published 2 Public Calls, namely:

  1. Public Call for the Early Development Program (MINI GRANTS PROGRAM);
  2. Public Call for the Innovation Co-financing Program (MATCHING GRANTS PROGRAM)

within which the Fund awards grants in the amount of EUR 80,000 to EUR 300,000 per individual project, depending on the Program in question.

Public Calls last until November 15, 2022.

For more information, please visit the following link.

Tax alert, September 2022

Evidention of the marketing services in retail stores via an electronic fiscal device

The Ministry of Finance of the Republic of Serbia on August 23, 2022 issued a Ruling no. 011-00-762/2022-04, by which the obligation of the supply recording via an electronic fiscal device is being established in case where the customer provides marketing services to the distributor in its retail store, all in order to advertise distributor’s goods in the customer's retail stores (for example, positioning of goods and assortment).

For more information, please visit the following link.

Tax Alert, August 2022

New Ruling of the Ministry of Finance regarding the VAT treatment of a part of the granted discount

The Ministry of Finance of the Republic of Serbia has adopted a Ruling no. 430-00-60/2020-04 on July 5, 2022, whereby it has determined the VAT treatment of part of the discount in cases where the seller has subsequently approved it to the buyer in the same period in which it has performed the supply of goods at price, which is lower that the approved discount, all with the intention to use the difference in funds to pay future supplies that the seller would make to the buyer.

For more information, please visit the following link.

Green program of cooperation between science and industry

We hereby inform you that the Science Fund of the Republic of Serbia (hereinafter: the Science Fund) with the consent of the Government of the Republic of Serbia (hereinafter: the Government) has issued a Public Call for applications for scientific research projects within the Green program of cooperation between science and industry (hereinafter: Program) within which grants are awarded, with the application deadline no later than October 11, 2022.
The total available grants for the implementation of the Program amount to EUR 3,500,000 while the maximum budget of an individual project is EUR 200,000.

For more information, please visit the following link.

Tax Alert, August 2022

Program for incentivizing the development of entrepreneurship through financial support for business beginners in 2022

We hereby inform you that the Ministry of Economy of the Republic of Serbia, in cooperation with the Development Fund of the Republic of Serbia (hereinafter: the Fund), implements the Program for incentivizing the development of entrepreneurship through financial support for business beginners in 2022 (hereinafter: the Program), within the framework of which it allocates grants to entrepreneurs, micro and small legal entities until the available funds are used up, and no later than December 31st, 2022.

For more information, please visit the following link.

Tax Alert, June 2022

The new incentive for employment of newly settled persons

On June 16, 2022, the Government of Serbia passed a Regulation on the criteria for granting incentives to employers who employ newly settled persons in Serbia (hereinafter: “The Regulation”).
The Regulation, in line with the Law on Investments, determines the criteria for granting incentives to employers who employ newly settled persons in Serbia for whom there is a need, since the workers of similar profiles cannot be easily found in the domestic labor market (hereinafter: “newly settled person”).
The employer may be a domestic or foreign legal or natural person, entrepreneur, branch, or representative office of a foreign employer.

For more information, please visit the following link.

 

Grant allocation within StarTech program

Innovation and digital transformation support.

We hereby inform you that the National Alliance for Local Economic Development (NALED) and the Government of the Republic of Serbia invite start-ups, entrepreneurs, micro, small and medium enterprises (SMEES) to sign up for the StarTech program, aimed at supporting innovation and digital transformation of the economy in Serbia, until 18 May.
StarTech program consists of three components:
1. I component: Direct financial and expert support for private companies
2. II component: Reforms for better conditions of innovative business
3. III component: Promotion of innovation, innovators, and Serbia as an investment destination
The program is valued at $ 5 million, of which about $ 3.5 million is earmarked for the I component of the program, and the remaining $ 1.5 million is directed at the II and III components of the program.

For more information, please visit the following link.

Programme: Creative Europe

Project: Video games and development of immersive contents

Within the Creative Europe Programme, which focuses on culture and audio-visual sectors, an invitation has been issued for participation in the Video Games project and the development of immersive content. And this year Serbia is one of the participants in creative Evrope programmes.

Grants totaling up to 6m euros are earmarked for the development of works and prototypes of interactive narratives with original content and/or quality gameplay intended for production and global commercial exploitation through computers, consoles, mobile devices, tablets, smartphones, and other technologies.

These funds are earmarked for video game production companies and other companies that produce content for the development of works with high levels of originality and innovative and creative value.

For more information about the conditions for participation, please visit the following link.

Tax Alert, March 2022

Regulation on determining criteria for granting the incentives for attracting direct investments in automation of existing capacities and innovation

On February 11, 2022, the Government of the Republic of Serbia issued a Regulation on determining criteria for granting the incentives for attracting direct investments in automation of existing capacities and innovation.

This regulation specifies the criteria, conditions, and method of attracting direct investments in the automation of existing capacities and innovation in high value-added industrial areas.

For more information, please visit the following link

 

 

 

Tax Alert, January 2022

New OECD guidelines

On 20 January 2022, the OECD announced the release of the 2022 edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. The transfer pricing guidelines provide guidance on the application of the arm’s length principle and serve as a framework for the consideration of transfer prices between associated enterprises.

The 2022 edition consolidates the changes to the 2017 edition of the guidelines into a single publication, including changes resulting from the following:

  • Revised Guidance on the Application of the Transactional Profit Split Method (relating to BEPS action 10);
  • Guidance for Tax Administrations on the Application of the Approach to Hard-to-Value Intangibles (relating to BEPS action 8);
  • Transfer Pricing Guidance on Financial Transactions (relating to BEPS action 4 and actions 8-10).

To read more about this, please visit the following LINK.

Tax Alert, December 2021

Amendments to the Draft Law on Electronic Invoicing were adopted

The Government of the Republic of Serbia has adopted amendments to the Draft Law on Electronic Invoicing, which enables private and public sector to switch to a new electronic invoice system by the end of April next year.

From 1 May 2022, public sector entities will have the obligation to receive, store and issue an electronic invoice to another public sector entity, while private sector entities will have the obligation to issue an electronic invoice to a public sector entity.

The obligation of a private sector entity to receive and keep an electronic invoice issued by a public sector entity, as well as electronic invoices issued by a private sector entity, will apply from 1 July 2022.

Obligations to issue and keep electronic invoices in transactions between private sector entities will apply from January 1, 2023.

Tax Alert, October 2021

Rulebook on the chart of accounts

We hereby wish to remind you that in accordance with the Rulebook on the chart of accounts and the content of accounts in the chart of accounts for companies, cooperatives and entrepreneurs, and in accordance with the Law on Accounting, the new Chart of Accounts and the content of accounts in the Chart of Accounts for companies, cooperatives and entrepreneurs has been prescribed.

More information can be found here.

Tax Alert, September 2021

Draft Law on Amendments to the Law on Fiscalization

The Draft Law on the Amendments to the Law on Fiscalization (hereinafter: the Draft Law) is in the procedure of the National Assembly of the Republic of Serbia.

The most relevant amendment of the current Law on Fiscalization refers to the stipulation of the transition period for the taxpayers, subject to fiscalization, in order for them to completely convert to the new fiscalization model in the proposed period as of November 1st, 2021 until April 30th, 2022.

Namely, this Draft Law provides the taxpayers, subject to fiscalization, with the possibility to convert to the new fiscalization model in phases, depending on their technical conditions, whereby undisturbed continuity in conducting their business activities shall be enabled. The aforementioned mostly pertains to taxpayers, subject to fiscalization, that perform retail activity on several locations or in several business premises.

That said, Law on Fiscal Cash Registers shall cease to be applied as of May 1st, 2022.

The text of the Draft Law may be accessed by clicking on the following LINK (available only in Serbian).

Tax Alert, September 2021

Document Archiving

On January 24, 2020, the National Assembly of the Republic of Serbia adopted the Law on Archival Material and Archival Activities ("Official Gazette of the RS", No. 6/2020), and one year after its adoption its official implementation began.

More information can be found here.

Tax Alert, April 2021

New Rulebook on Value Added Tax

The Ministry of Finance has adopted Rulebook on Value Added Tax, whose implementation should commence on July 1, 2021.

The full text of the Rulebook may be found on the following LINK (available only in Serbian).
 

Tax Alert, April 2021

Bylaws for the implementation of the new Law on Fiscalization have been published

The Ministry of Finance has published six Rulebooks for the implementation of the new Law on Fiscalization and the Government of the Republic of Serbia has issued the Decrees for the implementation of the new Law on Fiscalization.

More information can be found here..

Tax Alert, March 2021

Rulebook on “arm’s length” interest rates on intercompany loans
for 2021

Pursuant to Article 61, para 3 of the Corporate Income Tax Law (Official Gazette RS no 25/01, 80/02, 80/02 – oth. law, 43/03, 84/04, 18/10, 101/11,119/12, 47/13, 108/13, 68/14 – oth. law, 142/14, 91/15 – authentic interpretation and 112/15, 113/17, 95/18 and 86/19),), the Ministry of Finance has adopted the Rulebook on interest rates for 2021 that are considered to be at “arm’s length”.

More information can be found here.

Tax Alert, February 2021

Draft Law on Electronic Invoicing

We hereby wish to inform you about the main provisions of the Draft Law on Electronic Invoicing, since the public discussion on the respective Draft Law is being conducted at the moment. In that respect, an online public discussion on the Draft Law is organized by the Chamber of Commerce and Industry of Serbia, in cooperation with the Ministry of Finance in two sessions – one of them was conducted on Thursday, February 18th, 2021, and the other one will be conducted on Tuesday, February 23rd, in the period between 1:00PM and 3:00PM.

More information can be found here.

Tax Alert, February 2021

Adoption of the Program of direct grants in relation to the COVID-19 illness

The Government of the Republic of Serbia has, on February 11 2021, adopted a Decree on establishing the Program of direct grants from the budget of the Republic of Serbia to privately owned companies aimed at reducing the economic effects caused by the COVID-19 illness.

You may read more about this topic by visiting the following LINK (available only in Serbian).

Tax Alert, February 2021

Ministry of Finance is conducting a public discussion on the Draft Law on Electronic Invoicing

The Ministry of Finance is conducting a public discussion on the Draft Law on Electronic Invoicing in the period from 5 to 25 February 2021.

Remarks, proposals and suggestions are submitted to the Ministry of Finance in writing, with the note: "For the public discussion on the Draft Law on Electronic Invoicing" to the following address: Kneza Miloša 20, Belgrade, or electronically to the following e-mail address: elektronsko.fakturisanje@mfin.gov.rs.

You may read more about this topic by visiting the following LINK (available in Serbian only).

Tax Alert, January 2021

We hereby wish to inform you that rulebooks relevant for the assessment of corporate income tax for 2020 were published on 30 December 2020:

1. Rulebook on the amendments of Rulebook on content of tax balance sheet and other issues relevant for the assessment of corporate income tax

2. Rulebook on the amendments of Rulebook on content of corporate income tax return

In addition, amendments to the following rulebooks regarding value-added tax have been published, which are accompanied by amendments to the Law on Value-Added Tax (hereinafter: the “VAT Law”):

1) Rulebook on the manner and procedure of realizing tax exemptions with the right to deduct input VAT;

2) Rulebook on the manner of determining and correcting the proportional tax deduction;

3) Rulebook on the manner of determining the tax base for calculating VAT on the supply of goods or services performed for a consideration;

4) Rulebook on the form, content and manner of keeping record of VAT and on the form and content of the VAT calculation breakdown;

5) Rulebook on the form and content of the registration of VAT payers, the procedure of registration and deregistration and on the form and content of the VAT return;

6) Rulebook on determining goods and services in the field of construction for the purpose of determining the tax debtor for VAT.

In addition, a completely new Rulebook on determining goods that are considered to be used goods, works of art, collectibles and antiques was adopted.
 

More information can be found here.

Tax Alert, January 2021

Changes in the taxation of international transactions – Hong Kong and Japan

The past period has seen several changes in the taxation regime applicable to international transactions, specifically in relation to two jurisdictions – Hong Kong and Japan.

Firstly, the Law on the Ratification of the Agreement between the Government of the Republic of Serbia and the Government of Hong Kong of the Special Administrative Region of the People's Republic of China on elimination of double taxation, tax evasion and tax avoidance has been adopted by the National Assembly of the Republic of Serbia on December 24th 2020. The provisions of this treaty will apply in Serbia as of January 1st 2021.

As a result of the aforementioned, The Rulebook on the list of jurisdictions with preferential tax system (hereinafter: the Rulebook) has been adopted and will enter into force on January 1st 2021 whereby Hong Kong will be removed from the list of jurisdictions with a preferential tax system. Consequently, transactions with legal entities – residents of Hong Kong will no longer be subject to a special withholding tax at a rate of 25% and that general withholding tax rules will apply, with the possibility of applying the provisions of the previously described double tax treaty.

In addition to the above, the Law on Ratification of the Agreement between the Republic of Serbia and Japan on the elimination of double taxation, tax evasion and tax avoidance has been adopted by the National Assembly of the Republic of Serbia on December 29th 2020. The provisions of this treaty will apply in Serbia as of January 1st 2022.

Tax Alert, December 2020

Amendments to tax laws have been adopted

The National Assembly of the Republic of Serbia has adopted laws amending several tax laws on 17 December 2020 including:

• Law on Value Added Tax,
• Law on Corporate Income Tax,
• Law on Personal Income Tax,
• Law on Mandatory Social Security Insurance Contributions.

The laws will enter into force from January 1, 2021, with the exception of the Law on Corporate Income Tax, which will be applied to the determination, calculation and payment of tax liability for 2021, i.e. for the tax period starting in 2021.

More information can be found here.

Tax Alert, December 2020

Amendments to tax laws have been adopted

Amendments to tax laws have been adoptedThe National Assembly of the Republic of Serbia has adopted laws amending several tax laws on 17 December 2020 including: Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax and Law on Mandatory Social Security Insurance Contributions.

More information can be found here.

Tax Alert, December 2020

The Decree on the procedure and means of delaying the payment of taxes and social security contributions with a goal of mitigating the economic consequences of the COVID-19 illness

The Government of the Republic of Serbia has adopted the Decree on the procedure and means of delaying the payment of taxes and social security contributions with a goal of mitigating the economic consequences of the COVID-19 illness, on a session held on December 24 2020.

This decree essentially specifies the procedure for delaying the payment of taxes and social security contributions for those taxpayers which opted for this delay based on the Decree on fiscal benefits and direct grants to private companies and financial aid to citizens with a goal of mitigating the economic consequences of the COVID-19 illness.

The text of the decree is available through the following LINK (available only in Serbian).

Tax Alert, December 2020

Law on Amendments to the Law on Property Taxes has been adopted

The Law on Amendments to the Law on Property Taxes (LPT) has been adopted by the National Assembly of the Republic of Serbia on November 26th 2020, and will enter into force on 1st January 2021.

More information can be found here.

Tax Alert, December 2020

Amendments to the Law on Tax Procedure and Tax Administration have been adopted

Draft amendments to the Law on Tax Procedure and Tax Administration, have been adopted by the National Assembly of the Republic of Serbia on November 26th 2020, and will enter into force within 8 days of its publication in the RS Official Gazette, i.e. on December 4 2020. Most of the provisions will become applicable as of January 1 2021.

More information can be found here.

Tax Alert, November 2020

Draft Laws on Amendments to the Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax and the Law on Mandatory Social Security Contributions

The Ministry of Finance of the Republic of Serbia has published on its website: Draft Laws on Amendments to the Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax and the Law on Mandatory Social Security Contributions.

More information can be found here.

Tax Alert, November 2020

Rulebook on the manner of exercising the right to a salary tax base reduction for newly settled taxpayer

Rulebook on the manner exercising the right to a salary tax base reduction for newly settled taxpayer has been published on 13 November 2020 in Official Gazette.

This Rulebook closely defines the conditions and proof necessary to obtain by both qualified employer and newly settled taxpayer for the purpose of exercising the right to a salary tax base reduction.

More information can be found here.

Tax Alert, October 2020

Working Papers of the Draft Law on Amendments to the Law on Tax Procedure and Tax Administration and the Draft Law on Amendments to the Law on Property Taxes

The Ministry of Finance of the Republic of Serbia has published the working papers of the Draft Law on Amendments to the Law on Tax Procedure and Tax Administration and the Draft Law on Amendments to the Law on Property Taxes.

More information can be found here.

Tax Alert, October 2020

Working Paper of the Draft Law on Fiscalization

The Ministry of Finance of the Republic of Serbia has published the working paper of the Draft Law on Fiscalization on its website and at the same time invites the professional public and all interested business entities and citizens to join the consultation on the Draft Law.

More information can be found here.

Tax Alert, October 2020

New Rulings of the Ministry of Finance

During the past period, several rulings of the Ministry of Finance were published, which clarify the application of the provisions of the Law on Value Added Tax, Law on Corporate Income Tax and Accounting Law.

More information can be found here.

Tax Alert, July 2020

Ruling of the Ministry of Finance – submission of SNPDV and LNPDV forms

The new Ruling of the Ministry of Finance no. 011-00-243/2020-04, as of June 22nd, 2020, regarding the submission of SNPDV and LNPDV forms along with VAT return, has been published.

Namely, the Ruling in question states that, having in mind comprehensive measures of the Government of the Republic of Serbia implemented, aimed at reducing the economic effects caused by the COVID-19 illness induced by the SARS-CoV-2 Virus, as well as the organization of business activity of the VAT-payers in a way that they allowed their employees to work from home during the State of Emergency (some of them have allowed it after the ending of State of Emergency as well), there are no obstacles to subsequently submit SNPDV and LNPDV forms to the Tax Authority, i.e. to submit them with delay.

Tax Alert, July 2020

The Rulebook on the Manner and Procedure of Registration, Recording and Delivery of Electronic Invoices as Well as on the Manner and Procedure of Acceptance and Rejection of Electronic Invoices

The Rulebook on the manner and procedure of registration, recording and delivery of electronic invoices as well as on the manner and procedure of acceptance and rejection of electronic invoices was published and it entered into force on 27 June 2020.

More information can be found here.

Tax Alert, July 2020

Rulebook on Preventive Measures for Safe and Healthy Work to Prevent the Occurrence and Spread of the Infectious Disease Pandemic

The Ministry of labour of the Republic of Serbia issued the Rulebook on preventive measures for safe and healthy work to prevent the occurrence and spread of the infectious disease pandemic which enters into force on 11th July 2020. 

Environmental Impact Assessment Decree

Also Environmental Impact Assessment Decree was adopted on 7 December 2019. The application of a Decree started on the day of its adoption.

More inofrmation can be found here.

Tax Alert, June 2020

New Rulings of the Ministry of Finance

During the past period, several rulings of the Ministry of Finance were published, which clarify the application of the provisions of the Law on Value Added Tax, Law on Corporate Income Tax, Accounting Law and Law on Foreign Currency Operations.

More inofrmation can be found here.

Tax Alert, March 2020

2019 non-taxable threshold for annual income tax purposes

Based on the published data in Official Gazette no. 16/2020 from February 27th
2020 regarding average annual salary per employee paid out in 2019 in the
Republic of Serbia, the non-taxable threshold relevant for determining 2019
annual personal income tax filing liability is set at RSD 2,729,304

More inofrmation can be found here.

Tax Alert, February 2020

Categories of foreign citizens eligible for temporary residence permit

We hereby fish to inform you that Government of Serbia has adopted a Decree on the criteria for determining the category of foreign citizens who may be granted a
temporary residence permit by the Republic of Serbia (hereinafter Decree),
regardless from the criteria prescribed in the Law on Foreigners, during the
session held on February 13th 2020. 

More on this can be found here.

Tax, Alert February 2020

We hereby wish to inform you that the Serbian government adopted a Decree on the criteria for determining the category of foreign citizens who may be granted a temporary residence permit by the Republic of Serbia, regardless of the grounds for granting the temporary residence on 13 February 2020.

It is expected that the Decree will be published soon.
 

Tax Alert, February 2020

Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting – novelties

More information can be found here.

 

Tax Alert, January 2020

Ministry of Finance has published 3 rulebooks relevant for the assessment of corporate income tax for 2019, on 28 December 2019:

1. Rulebook on content of tax balance sheet and other issues relevant for the assessment of corporate income tax

2. Rulebook on content of corporate income tax return 

3. Rulebook on transfer pricing and methods that are applied according to
the arm’s length principle in determination of transaction prices between
related parties

Rulebooks come into force on 1 January 2020, and are applicable for corporate income tax calculation for 2019.
 

Tax Alert, December 2019

Rulebook on tax depreciation of fixed assets

On 23 December 2019 Minister of Finance has adopted Rulebook on tax depreciation of fixed assets (hereinafter: “Rulebook”), published in “Official Gazette of RS”, No.93/19. Rulebook will come into force on 1 January 2020, and is applicable on the assets acquired as from 1 January 2019, i.e. starting from the first day of tax period which begins in 2019. 

More information can be found here.

 

Amendments to the Personal Income Tax Law have been adopted

 We hereby wish to inform you that the draft Law on changes and amendments to the Law on Personal Income Tax (the Law) has been adopted in National Assembly of the Republic of Serbia on 6 December 2019, and will enter into force 8 days from publishing in the Official Gazette RS, i.e. on the 14 December 2019.

More information can be found here.

 

Amendments to the Law on Tax Procedure and Tax Administration
have been adopted

We hereby wish to inform you that draft amendments to the Law on Tax Procedure and Tax Administration (the Law), has been adopted by the National Assembly of the Republic of Serbia on 6 December 2019, and will enter into force within 8 days of its publication in the RS Official Gazette, i.e. on 14 December 2019.

More information can be found here.

 

Law on changes and amendments of the Law on Mandatory Social
Security Contributions has been adopted

We hereby wish to inform you that the Law on changes and amendments to the Law on Mandatory Social Security Contributions (the Law) has been adopted in National Assembly of the Republic of Serbia on 6 December 2019, and it will enter into force 8 days from publishing in the Official Gazette RS, i.e. on 14 December 2019.

More information can be found here


Law on amendments to the Law on Corporate Income Tax has been adopted

We hereby wish to inform you that draft Law on changes and amendments to the Law on Corporate Income Tax (the Law) is currently in procedure of adoption in National Assembly of the Republic of Serbia, and it is proposed to enter into force starting from corporate income tax calculation for 2020, or for tax periods commencing in 2020, except for rule referring to deductibility of expenses for banks incurred in line with the legislation on conversion of  house loans indexed in CHF, which will be applicable for 2019 corporate income tax calculation.

More information can be found here.

 

Law on Amendments to the Law on Property Taxes has been adopted

We hereby wish to inform you that Law on Amendments to the Law on Property Taxes (LPT) has been adopted by the National Assembly of the Republic of Serbia on 6 December 2019, and will enter into force on 1 January 2020.

More information can be found here.

 

 

Tax Alert, December 2019

Amendment of customs declaration upon release of goods

Ruling no: 148-I-030-01-537/2019 as of 21st November, 2019

More information can be found here.

Tax Alert, November 2019

Tax Authority’s Guideline for deductibility of donation expenses

The Guideline for deductibility of donation expenses (titled – Guidelines for Tax Benefits of Donors) was published on the Tax Authority’s website. Guideline contains examples and explanations on types of deductible donation expenses in line with the Corporate Income Tax Law, as well as explanations on manner of documenting such expenses.

The Guideline may be accessed via the following link (available only in Serbian).

________________
 

On October 22, 2019, the Ministry of Finance adopted a new Rulebook on determining telecommunications services and services provided electronically, in terms of the Law on Value Added Tax, and on establishing criteria and presumptions for determining the seat, fixed establishment, place of residence or domicile of recipients of telecommunications, radio and television broadcasting services and services provided electronically. The Rulebook will come into force as of 1 January 2020.

More information can be found here.

______________

The draft Law on Amendments to the Law on Tax Procedure and Tax Administration (the Law) is currently in procedure before the National Assembly of the Republic of Serbia and it is intended to enter into force within 8 days of its publication in the RS Official Gazette. 

More information can be found here.

______________

The draft Law on changes and amendments to the Law on Personal Income Tax is currently in procedure for adoption in National Assembly of the Republic of Serbia, and it is proposed to enter into force 8 days from publishing in the Official Gazette RS.

More information can be found here.

______________

The draft Law on changes and amendments to the Law on Mandatory Social Security Contributions (the Law) is currently in procedure of adoption in National Assembly of the Republic of Serbia, and it is proposed to enter into force 8 days from publishing in the Official Gazette RS.

More information can be found here.

______________

The draft Law on Amendments to the Law on Property Taxes (LPT) is currently in the procedure of adoption by the National Assembly of the Republic of Serbia, and it is proposed to enter into force on 1 January 2020.

More information can be found here.

 

 

Tax Alert, October 2019

Draft  Law on amendments to the Law on Corporate Income Tax

The draft Law on changes and amendments to the Law on Corporate Income Tax (the Law) is currently in procedure of adoption in National Assembly of the Republic of Serbia, and it is proposed to enter into force starting from corporate income tax calculation for 2020, or for tax periods commencing in 2020.

More information can be found here.

New Law on Accounting

We hereby wish to inform you that a new Law on Accounting, “Off. Gazette RS”, no. 73/2019 was passed at the session of the National Assembly of the Republic of Serbia on October 10th 2019, effective January 1st 2020.

More information can be found here.

Tax Alert, October 2019

The Working paper of the Law on Amendments of the Companies Law

The Working paper of the Law on Amendments of the Companies Law was published on the Ministry of Commerce website, in the section Draft Laws.

The proposed changes mainly relate to the introduction of the notion of a Preferential own share, that is, a special category of company’s own share on the basis of which a limited liability company may issue a financial instrument - the right of share acquisition. The proposed changes create the possibility for local employers - limited liability companies to create employee reward plans using these financial instruments, similar to the reward plans existing in multinational companies (so-called share plans).

The Working paper may be accessed via the following link (available only in Serbian).

It is also indicated that any comments or suggestions related to Working paper can be submitted to the Ministry of Economy not later than October 29th, to the following e-mail address: privrednadrustva@privreda.gov.rs or in writing to the Ministry of Economy, Kneza Milosa 20, 11000 Belgrade, with the note: "For public discussion on the Working paper of the Law on Amendments to the Companies Law".

Tax Alert, October 2019

Draft of the Law on changes and amendments to the Law on Personal Income Tax

Serbian Ministry of Finance has published the Draft of the Law on amendments to the Law on Personal Income Tax on 8 October 2019 which contains changes with respect to certain legal provisions. More information can be found here.

Draft of the Law on changes and amendments of the Law on Mandatory Social Security Contributions

On 8 October 2019 the Ministry of Finance has published the Draft of the Law on amendments of the Law on mandatory social security contributions. More information can be found here.

Tax Alert, October 2019

We hereby wish to inform you that the National Assembly of the Republic of Serbia has adopted the Law on Amendments to the Law on Value Added Tax, during its session held on October 7, 2019. 

More information can be found here.

 

Tax Alert, September 2019

The Working paper of the Law on Amendments of the Law on Corporate Income Tax Law

The Working paper of the Law on Amendments of the Law on Corporate Income Tax Law was published on the Ministry of Finance website, in the section Drafts and suggestions.

The Working papers may be accessed via the following link. (available only in Serbian).

It is also indicated that any comments or suggestions related to Working papers can be submitted, not later than October 6th, 2019, 3:30pm, to the following e-mail address: fiskalni.sektor@mfin.gov.rs.

Tax Alert, August 2019

On 22 July 2019, the National Assembly of the Republic of Serbia has adopted Law on ratification of the Convention on Mutual Administrative Assistance in Tax Matters. The Convention expands the number of the countries with which Serbia may exchange tax information.

More information can be found here.

 

Tax Alert, July 2019

New Rulings of the Ministry of Finance

During the past period, several rulings of the Ministry of Finance were published, which clarify the application of the provisions of the Law on Value Added Tax, Law on Corporate Income Tax and the Law on Personal Income Tax.

For more detailed questions regarding the application of the rulings on your specific activity and circumstances, you can contact our Tax Department.

More information can be found here.

Rulebook on conditions and methods of exempting the qualified income from the corporate income tax base

On 9 July 2019 Minister of finance has issued Rulebook on conditions and methods of exempting the qualified income from the corporate income tax base, which comes into force on 20 July 2019, and applies to corporate income tax calculation as of 2019.

More information can be found here.

Rulebook on tax exemption from salary tax with respect to the acquisition of free shares received from the employer or employer’s related entity

On 12 July 2019, Minister of finance has issued Rulebook on tax exemption from salary tax with respect to the acquisition of free shares received from the employer or employer’s related entity which more closely defines application of the Article 18 paragraph 1 (11) and 2 of the Personal Income Tax Law, which provides for exemption from salary tax of free shares. Rulebook will enter into force on 20 July 2019.

More information can be found here.

Rulebook on tax exemption from salary tax with respect to organizing recreational, sport and other activities for the employees

On 12 July 2019, Minister of finance has issued Rulebook on tax exemption from salary tax with respect to organizing recreational, sport and other activities for the employees, which more closely defines the application of the exemption from Article 18a of the Personal Income Tax Law. Rulebook will enter into force on 20 July 2019.

More information can be found here.

Rulebook on conditions and manner for obtaining tax credit for investments in the share capital of newly established company performing innovative business activity

On 9 July 2019 Minister of Finance has adopted Rulebook on conditions and manner for obtaining tax credit for investments in the share capital of newly established company performing innovative business activity which prescribes in detail the procedure for confirming that conditions prescribed by Article 50j of the Corporate Income Tax Law for obtaining the right to use tax credit are met, and prescribes forms which the taxpayer needs to file with the tax balance sheet. Rulebook comes into force on 20 July 2019, and applies to corporate income tax calculation as of 2019, or for the tax period starting in 2019.

More information can be found here.

Rulebook on conditions and manner for obtaining the right to deduct expenses directly related to research and development activities in tax balance sheet in the double amount

On 9 July 2019, Minister of finance has adopted the Rulebook on conditions and manner for obtaining the right to deduct expenses directly related to research and development activities in tax balance sheet in the double amount (hereinafter: “Rulebook”) which more closely defines the application of Article 22g of the Corporate Income Tax Law, and defines:

-       which costs are deemed as costs directly related to R&D,

-       the manner of deduction of costs directly related to R&D in double amounts,

-       conditions that should to be fulfilled in order to ensure that R&D project is deemed as undertaken in the territory of the Republic of Serbia,

-       the documentation that should submitted for each individual project together with the tax balance sheet,

-       the manner of keeping records related to R&D expenses.

Rulebook comes into force on 20 July 2019, and is applicable to the corporate income tax calculation for 2019, i.e. to the tax period starting in 2019.

More information can be found here.

Tax Alert, July 2019

Ruling of Ministry of finance – documenting reimbursement of commuting expenses

After Ministry of finance has issued ruling no. 011-00-12/2019-04 on February the 1st 2019 on the tax treatment of reimbursement of commuting expenses, American Chamber of Commerce in Serbia has sent a letter to the Ministry of finance in order to clarify certain part of issued ruling with respect to the determination of what should be considered as a credible accounting document for the purpose of proving commuting costs’ reimbursement.

In that regard, Ministry of Finance has issued ruling no. 401-00-02148/2019-16 on June the 5th 2019, in which confirms that accounting documents listed in the letter of American Chamber of Commerce in Serbia should be considered as credible accounting documents, in line with the Law on accounting.

More information can be found here.

Tax Alert, June 2019

Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting – novelties

More information can be found here.

Tax Alert, May 2019

Law on Amendments and changes of the Law on Foreigners

Law on amendments and changes of the Law on Foreigners was published in the Official Gazette no. 31/2019, on April 29, 2019. Law entered into force on May 7, 2019, however the most important amendments will be applicable as of January 1, 2020.

Law on Amendments and Changes of the Law on Employment of Foreigners

Law on amendments and changes of the Law on Employment of Foreigners was published in the Official Gazette no. 31/2019, on April 29, 2019. Law entered into force on May 7, 2019.

More information can be found here.


Annual Tax Audit Plan for the year 2019

The Annual Tax Audit Plan for the year 2019 has been published on the Tax Administration website.

More information can be found here.


Position of the Tax Administration regarding the control of the fulfillment of conditions for reimbursement of commuting costs

More information can be found here.

 

 

Tax Alert, April 2019

During the past period, several rulings of the Ministry of Finance were published which clarify the application of the provisions of the Law on Value Added Tax, the Law on Corporate Income Tax, the Accounting Law and the Law on Fiscal Cash Registers.

More information can be found here.

Tax Alert, March 2019

2018 non-taxable threshold for annual income tax purposes you may read here.

Tax Alert, February 2019

Ministry of Finance has published Ruling no. 011-00-12/2019-04 regarding the tax treatment of reimbursement of costs for commuting to and from work.

More information can be found here.

Tax Alert, February 2019

We hereby wish to inform you that the Minister of Finance, has adopted a Rulebook on Amendments to the Rulebook on content of tax balance sheet and other issues relevant for the assessment of corporate income tax, on 5 February 2019.

You may read more about this topic on our web page Tax Alert.

Tax Alert, January 2019

2019 Social security bases

Furthermore, we hereby wish to inform you that the new maximum and minimal monthly social security contribution base for the year 2019 have been published, and the maximum annual social security contribution base for the year 2018 has been determined.

More information can be found here.

Tax Alert, January 2019

Social Security Agreement between Serbia and Switzerland

Social Security Agreement, as well as Administrative agreement on implementation of the Social Security Agreement, concluded in 2010 between Serbia and Switzerland, have entered into force on January 1, 2019. Convention on social security from 1962 and additional Convention from 1984, which was regulating relations regarding social insurance, ceases to be applicable from the date of entry into force of the Agreement.

More information can be found here.

Tax Alert, January 2019

Тhe Central Register of the Beneficial Owners

Тhe Central Register of the Beneficial Owners has been established within the Serbian Business Registers Agency as of December 31, 2018, as a unique, centralized, public and electronic data base about beneficial owners of subjects registered, established until December 31, 2018, in accordance with the Law on the Central Register of the Beneficial Owners and the Rulebook on the content of the Central Register of the Beneficial Owners.

Therefore, authorized persons within legal persons and other subjects registered should register the data about the beneficial owners, not later than January 31, 2019.

With the aim of conducting this legal requirement, the Ministry of Economy has prepared the Guidelines for the registration of the beneficial owner of the subject registered in Central Register (available only in Serbian).

Tax Alert, January 2019

Rulebook on Amendments to the Rulebook on classification of fixed assets by groups for tax depreciation purposes

The Minister of Finance has adopted a Rulebook on Amendments to the Rulebook on classification of fixed assets by groups for tax depreciation purposes, on 28 December 2018 which applies as of corporate income tax calculation for 2018.

More information can be found here.

Tax Alert, December 2018

Economic Citizenship Program in Montenegro

Тhe Government of Montenegro has adopted decision which specifies the criteria, manner and procedure of electing persons which may acquire Montenegrin citizenship based on the “economic citizenship program”, which will be applicable as of 1 January 2019

More information can be found here.

Tax Alert, December 2018

International taxation

We hereby wish to remind you that Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting has come into force for Serbia on 1 October 2018, and that it applies to certain Double Tax Treaties as of 1 January 2019.

More information can be found here.

Tax Alert, December 2018

Amendments to the tax laws of the Republic of Serbia

On 7 December 2018, National Assembly of the Republic of Serbia has adopted the amendments to the following tax laws:

1. Corporate Income Tax Law  - more about this topic can be found here.

2. Personal Income Tax Law - more about this topic can be found here.

3. Mandatory Social Security Law - more about this topic can be found here.

4. Law on Tax Procedure and Tax Administration - more about this topic can be found here.

5. Law on Property Tax - more about this topic can be found here.

6. Customs Law - more about this topic can be found here.

Major amendments refer to the change in method of calculating tax depreciation, as well as introduction of tax incentives for investment in knowledge industry and research and development.

Furthermore, National Assembly of the Republic Serbia has, in the same session, adopted the Law on fees for use of public goods, whose aim is to compile and encompass all fees which are levied for the use of public goods.

Tax Alert, November 2018

The Draft of the Law on Amendments of the Law on Contributions for the Obligatory Social Insurance and Draft of the Law on Amendments of the Law on Tax Procedure and Tax Administration were published on the Ministry of Finance website, in the section Drafts and suggestions.

The Draft of the Law on Amendments of the Law on Contributions for the Obligatory Social Insurance may be accessed via the following link, Draft of the Law on Amendments of the Law on Tax Procedure and Tax Administration may be accessed via the following link. (available only in Serbian).

It is also indicated that any comments or suggestions related to Working papers can be submitted, not later than 16 November 2018, within working hours, to the following e-mail address: fiskalni.sektor@mfin.gov.rs.

The mentioned draft amendments will be discussed in Deloitte seminar which will be held on 23 November 2018. For all information on the seminar as well as for registration, please contact jargirovic@deloittece.com.

 

Tax Alert, November 2018

The Working paper of the Law on Amendments of the Law on Corporate Income Tax Law was published on the Ministry of Finance website, in the section Drafts and suggestions.

The Working papers may be accessed via the following link. (available only in Serbian).

It is also indicated that any comments or suggestions related to Working papers can be submitted, not later than 9 November 2018, 12pm, to the following e-mail address: fiskalni.sektor@mfin.gov.rs.

Tax Alert, November 2018

International taxation

Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting has come into force for Serbia on 1 October 2018.

More information can be found here.

Tax Alert, October 2018

Rulebook on recognized expenditures for investments in the field of culture

The Minister of Culture and Information has adopted a new Rulebook on recognized expenditures for investments in the field of culture. This rulebook prescribes what is considered as an investment in the field of culture, including cinematography, which is recognized as expenditure for tax balance purposes in amounts not exceeding 5% of total revenue.

More information can be found here.

Tax Alert, October 2018

Treaty for the Avoidance of Double Taxation with San Marino entered into force

The Draft of the Treaty for the Avoidance of Double Taxation with Algeria has been finalized

On October 8, 2018, the Treaty between the Government of the Republic of Serbia and Government of the Republic of San Marino for the Avoidance of Double Taxation and prevention of tax evasion regarding income taxes has entered into force and will become applicable on January 1, 2019.

The aforementioned means that residents of Republic of Serbia and Republic of San Marino could, as of the next year, rely on the provisions of this Treaty when it comes to determination of the tax treatment of transactions they undertake. Besides, these transactions should not be the subject of the special regime of taxation which applies on transactions with persons from jurisdictions with preferential tax systems.

Please feel free to contact us in case you have additional questions in relation to the application of this new Treaty for the Avoidance of Double Taxation.

Additionally, we would like to inform you that the Draft of the Treaty between the Government of the Republic of Serbia and the Government of the People’s Democratic Republic of Algeria for the removal of double taxation regarding income and property taxes and prevention of tax evasion and avoidance, has been finalized in order to undertake the necessary steps to sign the Treaty in the near future.

Tax Alert, September 2018

Social Security Agreement between Serbia and China  

Draft of the Law on Ratification of Social Security Agreement between Government of Serbia and Government of People’s Republic of China has been published. 

More information can be found here.

Tax Alert, September 2018

Rulebook on work permits

New Rulebook on work permits (“Official Gazette RS” no. 63/2018) has been published with regard to the Law on Employment of Foreigners and the recent amendments to the Law. Rulebook is in force as of 25 August 2018.

More information can be found here.

Tax Alert, August 2018

Тhe User Manual regarding the means and procedure of reporting business units of economic subjects and warehouses

We would hereby like to inform you that a detailed User Manual regarding the means and procedure of reporting business units of economic subjects and warehouses has been published on the Tax Administration’s website, which contains information of relevance for fulfilling this new requirement that affects economic subjects in the Republic of Serbia, as of August 27, 2018.

The User Manual, as well as the accompanying news item on the Tax Administration’s website, may be accessed via the following link (available only in Serbian).

Tax Alert, July 2018

New bylaws regarding the implementation of the Law on Value Added Tax have been published, namely:

  • Rulebook on the method and procedure for claiming the zero VAT rate, which came into force on July 1, 2018; and
  • Rulebook on determining cases in which there is no obligation to issue an invoice and on invoices in which certain data can be omitted, which came into force on July 7, 2018.

More information can be found here.

Tax Alert, July 2018

The adoption of the changes and amendments to the Rulebook on the form and contents of VAT records and on the contents of the VAT calculation breakdown came into force on July 1 2018.

More information can be found here.

Tax Alert, July 2018

New Ministry of finance rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax, and the Law on Excise Duties.

More information can be found here.

Tax Alert, June 2018

Тhe Working papers of the Law on Amendments of the Law on Personal Income Tax and the Law on Amendments of the Law on Mandatory Social Security Contributions were published on the Ministry of Finance website, in the Public Debate section.

The Working papers may be accessed via the following link. (available only in Serbian).

It is also indicated that any comments or suggestions related to Working papers can be submitted, not later than June 26, 2018, to the following e-mail address: fiskalni.sektor@mfin.gov.rs.

Tax Alert, June 2018

The Working paper of the Law on Amendments of the Law on Property Tax was published on the Ministry of Finance website, in the Public Debate section. One of the most significant changes is the abandonment of the concept of fair value of real estate as the basis for property tax.

The Working paper may be accessed via the following link. (available only in Serbian).

It is also indicated that any comments or suggestions related to Working paper can be submitted to the following e-mail address: fiskalni.sektor@mfin.gov.rs.

 

Tax Alert, June 2018

Central register of beneficial owners of companies and other entities

Law on central register of beneficial owners prescribes the obligation for companies and other registered persons to declare their beneficial owner and establishes Central register of beneficial owners of companies and other registered persons in Serbia. This law has come into force on 8 June 2018.

Central register will be established by the Serbian Business Registers Agency by the end of 2018, however, companies and other persons subject to this law need to determine their beneficial owners by 8 July 2018 at the latest, and to keep data and documents based on which the beneficial owner was determined. Such persons have the obligation to make such data and documents available at the request of a competent authority or National Bank of Serbia.

More information can be found here.

Tax Alert, May 2018

Adopted amendments to the tax laws

The National Assembly of the Republic of Serbia has adopted on April 19, 2018 the proposals of the:

1.  Law on Changes and Amendments to the Law on Value Added Tax;

2.  Law on Changes and Amendments to the Law on Tax Procedure and Tax Administration; and

3.  Law on Changes and Amendments to the Law on Excise duties.

More information can be found here.

Tax Alert, May 2018

International taxation

Serbia is one of the first countries to ratify the Multinational Convention, as the National Assembly of the Republic of Serbia has adopted the Law on ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, on 19 April 2018.

Multilateral Convention amends the provisions of the existing bilateral Double Tax Treaties, in case the Multilateral Convention has come into force for both contracting states which have notified the Double Tax Treaty under the Multinational Convention. Serbia has notified 64 Double Tax Treaties, both ones that have already come to force and ones which have not been ratified yet.

Serbia has still not deposited its ratification document with the OECD, therefore, Multilateral Convention will come into force for Serbia at the expiry of three months from the date the ratification document is deposited with the OECD, which is expected to happen shortly.

More detailed information on the Multilateral Convention will be provided in the coming period.

 

Tax Alert, April 2018

The Ministry of Finance 2017 Annual Income Tax Instructions

On March 28, 2018, the Ministry of Finance published on their website 2017 Annual Income Tax Instructions.

Taxpayers for the annual income tax are tax residents for their worldwide income and tax non-residents for their income sourced in Serbia.

More information can be found here.

Tax Alert, March 2018

The New Law on Foreigners

The new Law on Foreigners was adopted on March 22, 2018. It will be applicable six months from the date of entry into force.

More information can be found here.

Tax Alert, March 2018

New Rulebooks published

The Ministry of Finance published three new Rulebooks:

  • Rulebook on amendments and changes to the Rulebook on the contents of the tax return for the calculation of corporate income withholding tax on income and fees realized by nonresident and resident legal entities that will enter into force on April 1, 2018;
  • Rulebook on amendments to the Rulebook on PP OPO tax return that entered into force on March 17, 2018; and
  • Rulebook on amendments to the Rulebook on PPP PD tax return that entered in force on March 17, 2018.

More information can be found here.

 

Tax Alert, March 2018

Rulebook on “arm’s length” interest rates on intercompany loans  

Pursuant to Article 61, para 3 of the Corporate Income Tax Law (Official Gazette RS no 25/01…112/15 and 113/17), the Ministry of Finance has adopted the Rulebook on interest rates for 2018 that are considered to be at “arm’s length”.

More information can be found here.

Tax Alert, February 2018

New Ministry of Finance Rulings

Several Ministry of Finance rulings have been published in the past period aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and Law on Corporate Income Tax.

More information can be found here.

 

Tax Alert, February 2018

The User manual that deals with populating the VAT calculation breakdown (POPDV form), as well as other VAT issues was published

Тhe User manual for populating VAT calculation breakdown was published on the Tax Administration website (hereinafter: “User manual”).

The User manual, which is a result of the extensive efforts by the Tax Administration and the Ministry of Finance, contains the following:

1. Legal framework;

2. General guidelines related to populating the POPDV form;

3. Explanations relating to populating specific parts or fields of the POPDV form (with examples relating to specific parts or fields);

4. An example of populating POPDV form based on business changes in the tax period and populating the PPPDV form.

We emphasize that, in addition to the above, the User manual also contains clarifications and guidelines for numerous practical problems that have arisen during the application of VAT regulation in previous years, which are not necessarily directly related to the POPDV form.

The User manual may be accessed via the following link (available only in Serbian).

Tax Alert, February 2018

The Rulebook on the manner and procedure for registration of invoices or other withdrawal requests as well as contents and manner for keeping of the Central Invoice Register (hereinafter: “the Rulebook”) was published and entered into force on 3 February 2018.

Access to the Central Invoice Register will be granted to the administrator, as well as other individuals who possess a user account which allows them to work in the registry (local users).

The administrator will be authorized to create and deactivate user accounts, review account information, register and cancel invoices (for creditors only), review registered and export invoices, whilst the local user will be authorized to register and cancel invoices (for creditors only) and review registered and export invoices.

Invoice registration will be performed by the administrator or a local user authorized to register the invoices, by entering the invoice data (name or unique number of a public funds user (JBKJS) - debtor, invoice number, total invoice amount and comments).

The Central Invoice Register will contain the following information:

  • on invoices (JBKJS of a debtor, number, total amount and date of issuing invoice and comments);
  • on the date and amount of the invoice being settled;
  • on creditors and debtors;
  • on individuals - administrators authorized by the creditor or the debtor to work in the Central Invoice Register; and
  • individuals - local users.

Public sector entities that perform payments through accounts managed by the Treasury Administration, may settle their invoices only if the invoices were properly registered in the Central Invoice Register.

The registration of invoices in the Central Invoice Register shall start from 1 March 2018.

Tax Alert, January 2018

2018 maximal monthly social security contribution base and 2017 maximal annual social security contribution base

More information can be found here.

Tax Alert, January 2018

2017 non-taxable threshold for annual income tax purposes and adjusted non-taxable amounts in Serbian currency (RSD) for 2018

More information can be found here.

Tax Alert, January 2018

New Ministry of Finance Rulings

Several Ministry of Finance rulings have been published in the past period aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and Law on Corporate Income Tax.

More information can be found here.

Tax Alert, December 2017

The Law on Changes and Amendments to the Law on Terms for Settlement of Monetary Obligations in Commercial Transactions was adopted at the session of the National Assembly of the Republic of Serbia held on 14 December 2017.

Within the aforementioned law provisions were introduced envisaging mandatory registration of invoices and other withdrawal requests within a specially formed Central Invoice Register. This register represents a system (database) that will be established and managed by the Ministry of Finance - the Treasury Department, in which invoices and other withdrawal requests are registered – specifically those issued by creditors in commercial transactions between the public sector and business entities, or among public sector entities, whilst public sector entities are debtors.

The reasons for introducing the compulsory registration are the improvement of the efficiency and security of collecting stated creditor claims, as well as allowing debtors to check the validity of issued invoice before payment is made to the creditor, whilst the payment is possible only if such invoice is correctly registered, or if it corresponds to the issued invoice, or another withdrawal request.

In the first phase, registration of invoices and other payment withdrawals shall be applicable to invoices and other withdrawal requests for which payments are made through accounts held with the Treasury Department, starting from 1 March 2018. In the second phase registration shall be applicable to the invoices and other withdrawal requests for which payments are made through accounts held with banks, after the establishment of appropriate technical and technological conditions.

Finally, it is envisaged that the Minister of Finance will, within 30 days from the date of entering into force of this Law, adopt a bylaw regulating the manner and procedure for registration of invoices or other withdrawal requests as well as contents and manner for keeping of the Central Invoice Register.

Tax Alert, December 2017

Explanatory note of the Ministry of Finance and Ministry of Trade, Tourism and Telecommunication regarding the issuing and posting of invoices in paper and electronic form without the use of stamps and signatures

Ministry of Finance and Ministry of Trade, Tourism and Telecommunication have published an explanatory note describing the manner of issuing and posting of invoices (generated in paper or electronic form) in the business records of legal entities and entrepreneurs.        

Namely, the explanatory note defines that legal entities and entrepreneurs may issue invoices in paper and electronic form and such invoices do not have to contain a stamp and signature of an authorized person, but it is sufficient to contain identification mark instead (i.e. name and surname, signature, facsimile, electronic signature, etc.) referring to the responsible person or person authorized for issuance of such invoice. In addition, legal entities and entrepreneurs are not obliged to print out an invoice originally created in electronic form, nor to stamp and sign such printed document.

The explanatory note may be assessed via the following link (available only in Serbian).

Tax Alert, December 2017

Adopted amendments to the tax laws

The National Assembly of the Republic of Serbia has adopted on December 14, 2017 the proposals of the Law on Changes and Amendments to the Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax and Law on Mandatory Social Security Contributions.

More information can be found here.

Tax Alert, November 2017

Certificates of residence for Google and Facebook issued in electronic format

The Ministry of Finance has, in Ruling no 430-00-45/2017-04 of October 18, 2017, confirmed the usability of residence certificates for Google and Facebook, issued by the competent authority of the Republic of Ireland in electronic format.

More information can be found here.

Tax Alert, October 2017

Rulebook on Tax Return forms for determining personal income tax paid via Tax Assessment- PPDG-1R, PPDG-2R and PPDG-3R

Rulebook on Tax Return Forms for determining personal income tax paid via Tax Assessment was published on October 6th, 2017 in the “Official Gazette RS” no. 90/2017.

The Rulebook will enter into force on January 1st, 2018.

More information can be found here.

Tax Alert, October 2017

The Rulebook on the form, contents, manner of keeping VAT records, and on the form and contents of the VAT calculation breakdown has been published was published today, October 9 2017.

This Rulebook, i.e. its official proposal, has already been the subject of a previous Tax Alert within which it was described in detail. The previous Tax Alert may be accessed via the following link.

Tax Alert, September 2017

New Ministry of Finance Rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and Law on Corporate Income Tax.

More information can be found here.

Tax Alert, August 2017

The Proposal of the new Rulebook on the form, contents, manner of keeping VAT records, and on the form and contents of the VAT calculation breakdown

The new Rulebook on the form, contents, manner of keeping VAT records, and on the form and contents of the VAT calculation breakdown (hereinafter: the Rulebook) is currently under deliberation by the competent authorities, and its application is planned as of January 1, 2018.

Much like its previous version, the current Rulebook prescribes the form, contents and manner of keeping internal records relevant for determining VAT liabilities, which will not be submitted with the tax return, as well as the contents of the VAT calculation breakdown, which will be submitted on Form POPDV together with the tax return for every tax period.   

More information can be found here.

Tax Alert, August 2017

New Ministry of Finance Rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax and Property Tax Law.

More information can be found here.

Tax Alert, June 2017

New Ministry of Finance Rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax.

More information can be found here.

Tax Alert, May 2017

New Ministry of Finance Rulings 

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax and Law on Tax Administration and Tax Procedure.

More information can be found here.

Tax Alert, April 2017

New Ministry of Finance Rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax and Law on Personal Income Tax.

More information can be found here.

Tax Alert, April 2017

Rulebook on PPP PO tax return

On March 10th, 2017, “Rulebook on amendments to the Rulebook on withholding tax return” was published in the “Official Gazette RS” no. 21/2017, and has entered into force on March 11th, 2017. 

More information can be found here.

Tax Alert, April 2017

The Ministry of Finance 2016 Annual Income Tax Instructions

On 30th of March 2017, Ministry of Finance published on their website 2016 Annual Income Tax Instructions.

Taxpayers for the annual income tax are tax residents for their worldwide income and tax non-residents for their income sourced in Serbia.

More information can be found here.

Tax Alert, April 2017

Ministry of Finance explanatory notes for determining the place of supply of services

Ministry of Finance has published two explanatory notes for determining the place of supply of services, which can be accessed at the following links (available in Serbian language only):

Explanatory note for determining the place of supply of services involving rental of vehicles and other movable items, as of April 1st 2017

Explanatory note for determining the place of supply of services involving transport of goods that are provided to the taxpayer, as of April 1st 2017

Please note that starting from April 1 2017, the VAT on rental of temporarily imported movable items (vehicles, equipment, etc.) is no longer computed by the competent customs authority but by a service recipient as a tax debtor, if Serbia is considered as the place of supply.

Tax Alert, March 2017

New Ministry of Finance Rulings

Several Ministry of Finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and on Law on Corporate Income Tax. Additionally, one public notice was posted regarding incentives for attracting foreign direct investment.

More information can be found here.

Tax Alert, March 2017

New VAT Rulebooks

On March 6th, 2017, three new VAT Rulebooks were adopted with respect to the rental of vehicles, supply of food and drinks for immediate consumption and supply of services related to real estate.

Also, amendments were made to existing Rulebook on the manner of exercising VAT exemption with the right to deduct input tax, in particular for transport services related to import, export, transit and temporary import.

More information can be found here.

Tax Alert, March 2017

Rulebook on “arm’s length” interest rates on intercompany loans

Pursuant to Article 61, para 3 of the Corporate Income Tax Law (Official Gazette RS no 25/01…112/15), the Ministry of Finance has adopted the Rulebook on interest rates for 2017 that are considered to be at “arm’s length”.

More information can be found here.

Tax Alert, March 2017

New Ministry of Finance rulings

Several Ministry of Finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and Law on Corporate Income Tax. Additionally, three Judgement of the Administrative Court were published, aimed at clarifying the implementation of provisions of the Law on General Administrative Procedure, Law on Tax Procedure and Tax Administration and Law on Customs.

More information can be found here.

Tax Alert, January 2017

New Ministry of Finance rulings and Judgements of the Administrative Court

Several Ministry of Finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax and Law on Personal Income Tax. Additionally, two Judgements of the Administrative Court were published, aimed at clarifying the implementation of provisions of the Law on General Administrative Procedure.

More information can be found here.

Tax Alert, January 2017

Non–taxable threshold amounts for 2017

In accordance with data on consumer price index and average annual salary per employee paid out in the Republic of Serbia in 2016 publicized by Statistical office of the Republic of Serbia on January 12th/25th, 2017, adjusted non-taxable amounts in Serbian currency (RSD) effective from February 1st, 2017 have been determined.

More information can be found here.

Tax Alert, December 2016

Amendments to the Law on Value Added Tax and Law on Tax Procedure and Tax Administration

Parliament of the Republic of Serbia has adopted amendments to the Law on Value Added Tax (hereinafter: VAT Law) and the Law on Tax Procedure and Tax Administration (hereinafter: Tax Procedure Law) which contain significant changes with respect to certain legal provisions, primarily with the purpose of harmonizing domestic tax legislation with the legislation of the European Union.

Most of the amendments to the VAT Law will come into force on January 1, 2017 except for the provisions concerning the place of supply of goods and services, which shall apply as of April 1, 2017 and the provision prescribing that VAT calculation breakdown shall be submitted together with VAT return, which shall apply as of January 1, 2018.  

Law on Amendments to the Tax Procedure Law will come into force on January 1, 2017 except for the amendments regarding the authority competent to decide in second-degree procedures, which shall apply from July 1, 2017.

More information can be found here.

Tax Alert, November 2016

New Ministry of Finance rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax and Law on Fiscal Cash Registers.

More information can be found here.

Tax Alert, October 2016

Entry into force of the new Rulebook on VAT records is postponed

Ministry of Finance adopted the initiative to postpone the entry into force of the new Rulebook on form, contents, manner of keeping the VAT records and form and contents of the VAT calculation breakdown (hereinafter: the Rulebook), in order to revise the provided solutions. In line with the aforementioned, the Rulebook should now enter into force as of January 1st 2018.

Tax Alert, October 2016

On September 30, 2016, the Minister of Finance adopted the Rulebook on form, contents, manner of keeping VAT records, and form and contents of the VAT calculation breakdown (“Official Gazette of RS’’ no. 80/16, hereinafter: the Rulebook), which will come into force on January 1, 2017.

More information can be found here.

Tax Alert, September 2016

New Ministry of Finance rulings and the Appellate Court Judgement 

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, Law on Corporate Income Tax, Law on Personal Income Tax and Law on Tax Procedure and Tax Administration. Additionally, one Judgement of the Appellate Court was published, aimed at clarifying the implementation of provisions of the Criminal Law.

More information can be found here.

Tax Alert, August 2016

New Ministry of Finance rulings and a Decision of the Commercial Appellate Court

Several Ministry of Finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and Law on Corporate Income Tax. Additionally, one Commercial Appellate Court Decision was published, aimed at clarifying the implementation of provisions of the Law on Tax Administration and Tax Procedure.

More information can be found here.

Tax Alert, June 2016

New Ministry of Finance rulings

Several Ministry of Finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on:

  • Value added tax
  • Withholding tax
  • Personal income tax
  • Excise duties

More information can be found here.

Tax Alert, April 2016

New Ministry of Finance rulings

Several Ministry of finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax, the Law on Corporate Income Tax, the Law on Personal Income Tax, the Serbia – Norway tax treaty, the Customs Law, the Property tax law and the Law on Tax Procedure and Tax Administration, and the following have been selected:

  • Withholding tax on transport services rendered in the territory of Serbia;
  • Withholding tax on nonresident revenue for engineering, consulting and management services;
  • Place of supply for the leasing of billboards;
  • Determining the VAT debtor for the supply of concrete pumping services;
  • The right to deduct input VAT for the construction of a building intended for sale, regardless of whether the taxpayer possesses appropriate construction permits;
  • The right to carry forward losses from previous tax periods against increased taxable income during a tax audit;
  • Application of the Article 10 para 2 item 2) of the Serbia – Norway tax treaty;
  • Payment of social security contributions for an employee assigned for work abroad when personal income tax is calculated in a foreign state;
  • VAT treatment of deposits received by lessor from lessee based on a lease agreement;
  • The right to claim input VAT in situations when taxpayer purchases oil derivatives from a supplier without an appropriate license for oil derivatives sale;
  • VAT treatment of supplies involving technical protection systems;
  • Participation of foreign entities in customs proceedings in Serbia;
  • Determining the tax debtor for the delivery of hydraulic scissor lift platform;
  • VAT treatment of the delivery of electrical equipment with installation;
  • Withholding tax on reinsurance premium paid by a resident legal entity to a nonresident legal entity;
  • Recognizing expenses for tax balance purposes for interest, foreign exchange losses and the negative effects of a forex variation clause in regards to a loan agreement concluded for financing purchase of related entity shares, as well as regarding expenses related to consulting services;
  • Evidence that property is stated at fair market value for property tax purposes;
  • Recognizing expenses for tax balance purposes regarding interest on deposit received from a related entity;
  • Tax treatment of accommodation and meals for participants at expert conferences organized for advertising purposes;
  • Applicability of the parification method for VAT base determination purposes.

More information can be found here.

Tax Alert, March 2016

New Ministry of Finance rulings

Several Ministry of Finance rulings have been published in the past period, aimed at clarifying and elaborating on the implementation of provisions of the Law on Value Added Tax and the Law on Corporate Income Tax. The following have been selected:

  • Withholding tax on market research, agency, tax advisory, advertising, consultancy and marketing services
  • Withholding tax on services supplied by a nonresident bank
  • Determination of the corporate income tax base when a taxpayer states in its business records income from the reduction of a liability for interest on a related entity loan
  • Transfer pricing calculation when a taxpayer purchases fixed assets from abroad through a related entity, which provided importation services
  • Applicability of tax relief for investments in fixed assets in amounts exceeding RSD 1 billion used for activities listed in a company’s articles of association or similar document
  • VAT treatment when the delivery of each item of the assets being transferred is considered as a separate supply
  • The reduction of the VAT base based on a contractual out of court settlement
  • VAT liability when a VAT payer provides engineering services to a foreign entity
  • VAT liability when a VAT payer provides agency services for the supply of goods sent or dispatched from abroad to Serbia
  • The right to claim input VAT computed by a VAT payer whose TIN is temporarily seized
  • Date of supply for partial deliveries of goods and services in the construction industry, when the presence of a supervisory authority is mandatory
  • Reduction of the VAT base when the customer returns certain goods due to poor quality
  • Contents of an invoice when the supplier is a tax debtor for one part of the supply and the recipient is a tax debtor for the other part of the supply
  • The obligation to issue a fee reduction document as per Article 15 of the Rulebook on invoices as a condition for the reduction of the tax base and calculated VAT
  • The right to claim input VAT based on a newly issued formally correct invoice

More information can be found here.

Tax Alert, March 2016

Annual Income Tax Return - PPDG 2R Form

Мinistry of Finance of the Republic of Serbia has issued the Rulebook on amendments and changes of the Rulebook on tax return forms for determining personal income tax obligation paid in accordance with the tax assessment (“Official Gazette RS.” no. 28/2016) on March, 15th 2016.

More information can be found here.

Tax Alert, March 2016

Rulebook on PP OPO tax return

On February 25th, 2016, “Rulebook on tax return for self-assessed taxes and social security contributions on income or other types of income by a natural person as a taxpayer” has been published in the “Official Gazette RS”. no. 15/2016 (hereinafter referred to as a Rulebook), and has entered into force on March 1st, 2016. Former Rulebook published in the “Official Gazette RS.” no. 77/2013 ceases to exist. 

More information about the novelties on submission of the PP OPO tax return, you can find here.

Tax Alert, February 2016

Changes and amendments of provisions governing the tax procedure and the submission of withholding tax returns

The Government of the Republic of Serbia has submitted to the National Assembly a Proposal of the Law on changes and amendments of the Tax procedure and tax administration law.

The main reasons stated for the changes and amendments of the Tax procedure and tax administration law are enabling taxpayers to perform their business activities, as well as the need to further specify certain provisions.

Additionally, the provisions of the Rulebook on the changes and amendments of the Rulebook on the contents of the tax return for the calculation of corporate income withholding tax on income and fees realized by nonresident and resident legal entities enter into force on March 1 2016.

More information can be found here.

Tax Alert, February 2016

Serbian double taxation treaties – effective as at 1 January 2016

The list of effective double taxation treaties between the Republic of Serbia and other countries is expanded for one new contracting state starting from 1 January 2016. Namely, as of 1 January 2016 the new double taxation treaty concluded between the Republic of Serbia and the Kingdom of Norway is effective.

The new double taxation treaty replaced the previous treaty that was concluded in 1983 between the former Socialist Federative Republic of Yugoslavia and the Kingdom of Norway.

For more information, click here.

Tax Alert, February 2016

Non-taxable amounts for 2016

On 25th of January 2016 Personal Income Tax Law has been published with the adjusted non – taxable amounts in the Official Gazette no. 5/2016. Adjusted, non – taxable amounts come into force on 1st of February 2016. 

For more information, click here.

Tax Alert, January 2016

Law on Changes and Amendments to the Personal Income Tax Law and Law on Changes and Amendments to the Law on Mandatory Social Security Contributions

National Assembly of the Republic of Serbia on the 29th of December 2015 passed the Law on Changes and Amendments to the Personal Income Tax Law and the Law on Changes and Amendments to the Law on Mandatory Social Security Contributions.

For more information, click here.

Tax Alert, January 2016

Changes to the Corporate Income Tax Law and the Law on Tax Procedure and Tax Administration

The National Assembly of the Republic of Serbia has adopted the Law on changes and amendments to the Corporate Income Tax Law and the Law on changes and amendments to the Law on Tax Procedure and Tax Administration on December 29th, 2015. Most of the changes are applicable as of January 1st, 2016. 

For more information, click here.

Tax Alert, December 2015

Laws on Ratification of the Double Tax Treaties between The Republic of Serbia and The Kingdom of Norway, The Republic of Serbia and The Republic of Kazakhstan

The Law on ratification of Double Tax Treaty between the Republic of Serbia and the Kingdom of Norway (hereinafter referred to as DTT) and the Law on ratification of Double Tax Treaty between the Republic of Serbia and the Republic of Kazakhstan were published on November 26th, 2015 (“Official Gazette RS-International treaties”, no. 21/2015) and came into force on December 4th, 2015.

For more information, click here.

Tax Alert, November 2015

Law on requirements for temporary assigning employees to a foreign country and their protection

Law on requirements for temporary assigning employees to a foreign country and their protection was published on 5th of November 2015 and came into force on 13th of November 2015. The application of this Law will commence after two months of entering into force.

For more information, click here.

Tax Alert, October 2015

On October 6th, 2015, the Government of the Republic of Serbia has passed the Decree on changes and amendments of the Decree on reimbursement of costs and severance pay of civil servants and public employees, published in the Official Gazette of RS, no. 84/2015 (hereinafter referred to as Decree). The Decree enters into force on October 14th, 2015.

For more information, click here.

Tax Alert, September 2015

The Government of the Republic of Serbia has drafted a Proposal of the law on changes and amendments to the Law on value added tax, which was adopted by the National Assembly of the Republic of Serbia on a special session, held on September 28th, 2015. Most of the changes will be applicable as of October 15th, 2015.

The main reasons listed for the changes and amendments to the Law on value added tax are further harmonization with EU regulations, creating more favorable business environment, preventing possible abuses, as well as ensuring the improvement of the Tax Authority’s VAT audits.

For more information, click here.

Tax Alert, July-August 2015

Several Ministry of Finance rulings have been published in the past period aimed at clarifying and elaborating the implementation of provisions of various tax laws, including the Law on Value Added Tax, Corporate Income Tax Law, Law on Tax Administration and Tax Procedure, and the Personal Income Tax Law. 

For more information, click here.

Tax Alert, June 2015

Several Ministry of Finance rulings have been published in the past period aimed at clarifying and elaborating the implementation of provisions of various tax laws, including the Law on Value Added Tax (“VAT Law”), Personal Income Tax Law and Law on Excise Duties. 

For more information, click here.

Tax Alert, April 2015

Information regarding the submission of annual personal income tax returns

As of April 1st, 2015 tax returns for determination of annual personal income tax for 2014 should be submitted only in electronic form, through the Tax Authority’s web portal e-Porezi. In order to submit the tax return electronically a person should have a valid digital certificate (electronic signature).

Information regarding the submission of corporate income tax returns

As of April 1st 2015 tax returns for corporate income tax, except withholding tax, should be submitted only in electronic form, i.e. corporate income tax returns (Form PDP) are submitted through the Tax Authority’s web portal e-Porezi.

New rulings of the Ministry of Finance

Several Ministry of Finance rulings have been published in the past period aimed at clarifying and elaborating the implementation of provisions of the Law on value added tax. Additionally, two rulings related to the implementation of the Law on audit and the Law on accounting, which affect taxation in Serbia, have also been published. 

For more information, click here.

Tax Alert, March 2015

Rulebook on “arm’s length” interest rates on intercompany loans (Official Gazette RS no.23/2015)

Pursuant to Article 61, para 3 of the Corporate Income Tax Law, the Ministry of Finance has adopted the Rulebook on interest rates for 2014 that are considered to be “arm’s length”. 

For more information click here.

Tax Alert, February 2015

The Rulebook on Work Permits (Official Gazette of RS No. 136/2014) has entered into force on December 20th 2014. The aim of this Rulebook is to define the procedure of work permit issuance, i.e. extension, as well as the method of certifying the fulfillment of the conditions required.

Further, data on average annual salary per employee paid out in 2014 in the Republic of Serbia have been published. This data is used for determining the 2014 annual personal income tax filing liability.

Additionally, several Ministry of Finance rulings have been published in the past period, as well as two Administrative Court decisions, aimed at clarifying and elaborating the implementation of provisions of various tax laws, including: the Law on Tax Procedure and Tax Administration, the Law on Value Added Tax, the Law on Corporate Income Tax and the Law on Mandatory Social Security Contributions.

For more information click here.

Tax alert, December 2014

The National Assembly of the Republic of Serbia has adopted on December 25th 2014 a set of laws amending the provisions of the Value Added Tax Law, Excise Duties Law and Corporate Income Tax Law. The said amendments will come into force on January 1st 2015.

This past period has seen several rulings of the Ministry of Finance and one Administrative Court decision explaining the application of the provisions of the Value Added Tax Law, Law on Property Taxes, Law on Accounting and Corporate Income Tax Law.

For more information click here.

The Law on Employment of Foreigners

On the 25th of November 2014, the National Assembly of the Republic of Serbia has passed the Law on Employment of Foreigners, published in the Official Gazette of RS, no. 128/2014. The Law on Employment of Foreigners (hereinafter: the Law) enters into force on the 4th of December 2014.

For more information click here.

Tax Alert, October 2014

The Ministry of Finance has released several new Rulings in the previous period that further explain the application of Value Added Tax and Corporate Income Tax Law provisions.

Tax alert, October 2014

Tax alert, September 2014

Information for all entities having transactions with related parties in Albania.

Tax alert, September 2014

Tax alert, August 2014

The Ministry of Finance has released several new Rulings that further explain the application of Value Added Tax Law and the Corporate Income Tax Law provisions.

Tax alert, August 2014

Changes and amendments to the Labor Law, July 2014

The Parliament of the Republic of Serbia has adopted changes and amendments to the Labor Law on July 18, 2014 which enter into force on July 29, 2014, except for the provisions regarding pay-slip. The above mentioned changes and amendments harmonize the Labor Law with the provisions of IWO and EU regulations that the courts have so far applied directly. Furthermore, certain provisions of the Labor Law are more precisely defined, particularly the ones which were in practice subject to different interpretation by the employers and sometimes led to an uneven court practice, thus creating legal uncertainty.

Changes and amendments to the Labor Law, July 2014

Amendments to the Personal Income Tax Law and Law on Mandatory Social Security Contributions, July 2014

On May 30th, 2014, National Assembly of the Republic of Serbia has adopted Law on amendments of the Persona Income Tax Law, published in the Official gazette of RS, no.57/2014. Provisions of this Law apply as of July 1st, 2014.

Amendments to the Personal Income Tax Law and Law on Mandatory Social Security Contributions, July 2014

Changes and Amendments to the Law on Tax Procedure and Tax Administration, July 2014

The changes and amendments to the Law on Tax Procedure and Tax Administration (hereinafter: LTPTA) bring forth several novelties, including the unification of penalty provisions for tax offences within one law, as well as imposing stricter sanctions in case of violating tax regulations, and all with a goal of diminishing grey economy in Serbia.

Changes and Amendments to the Law on Tax Procedure and Tax Administration, July 2014

Tax Alert, April 2014

Since the 2012 changes and amendments to the Value Added Tax Law (hereinafter: VAT LAW) came into force on January 1, 2013 the VAT refund was made available to foreign taxpayers. Thus, we hereby inform you that the deadline for submitting the refund claim is June 30, 2014 for supplies made in 2013.

Deloitte is able to assist you with the preparation and submission of VAT refund claims. Accordingly, Deloitte Serbia is able to assist you with the VAT refund procedure from some EU member states and other countries that allow the refund of VAT to be made to Serbian companies.

Tax Alert, April 2014

Tax Alert, March 2014

The Ministry of Finance has issued several new Rulings that further explain the implementation of the provisions of the Value Added Tax Law, Corporate Income Tax Law and Law on Tax Procedure and Tax Administration.

Tax Alert, March 2014

Tax Alert, February 2014

In the previous period the Ministry of Finance has issued a number of Rulings relevant for applying the provisions of the Value Added Tax Law and Corporate Income Tax Law.

Tax Alert, February 2014

Tax Alert, January 2014

Ministry of Finance has issued a number of Rulings relevant for applying the provisions of the Value Added Tax Law, Corporate Income Tax Law and Property Tax Law. Further, on December 30, 2013 the Rulebook on Changes and Amendments to the Rulebook on the Forms of Tax Returns for Determining Property Taxes (“Off. Gazette”, no. 118/2013) was adopted. The said Rulebook is in effect as of January 1, 2014 and it has changed the way in which the property tax returns are being filled out.

Tax Alert, January 2014

Tax Alert, December 2013

A number of laws that amend the existing tax legislation were adopted last week. The amendments refer to: Corporate Income Tax Law, Law on Value Added Tax, Personal Income Tax Law, Law on Tax Procedure and Tax Administration, Law on Pension and Disability Insurance, and Law on Mandatory Social Security Contributions.

Furthermore, Double Taxation Treaties concluded between Serbia and Vietnam ("Official gazette of RS - International Treaties", no. 7/2013), Georgia, Canada and Tunisia ("Official gazette of RS - International Treaties", no. 6/2012) will enter into force on January 1st 2014.

Recently, Ministry of Finance has issued several new rulings that further explain implementation of Value Added Tax Law and Corporate Income Tax Law provisions.

Tax Alert, December 2013

Tax Alert, November 2013

Ministry of Finance has issued a number of Rulings relevant for applying the provisions of the VAT Law, CIT Law and Personal Income Tax Law.

Further, the Ministry announced increase of the reduced VAT rate from 8% to 10%, as well as taxation of certain categories of goods and services (e.g. supply of computers and hotel accommodation services etc.) with the standard 20% VAT rate to begin with January 1, 2014.

So far, the proposed changes and amendments of the VAT Law have not entered into National Assembly proceedings. The Ministry of Finance also announced “additional taxation of earnings in the public sector”. However, according to available sources this will not be a tax measure. Instead, it will take the shape of a gradual decrease of employee net earnings in the public sector which exceed certain thresholds (60.000 RSD net – 20% reduction and 100.000 RSD net – 25% reduction).  

Tax Alert, November 2013

Tax Alert, September 2013

Several new Rulings have been issued by the Ministry of Finance relevant for applying the provisions of the VAT Law and Corporate Income Tax Law.

Further, the Stabilization and Association Agreement between EU member countries and the Republic of Serbia has entered into force and it will, amongst other thing, have a direct impact on the business operations of companies in Serbia.

 

Tax Alert, September 2013

Tax Alert, August 2013

Several tax rulebook have been recently adopted. Also, numerous new rulings were issued by the Ministry of Finance and Economy, out of which we have selected the most relevant for the tax practice.

Tax Alert, August 2013

Tax Alert, July 2013

Recently a new rolebook was passed, determining the structure and contents of corporate income tax returns for capital gains and lease and sub-lease income derived by nonresident taxpayers. Further, the Rolebook on the Property Tax Return Forms was amended and trough the old forms PPI-3 (gift and inheritance tax) and PPI-4 (transfer tax) and replaced with new ones.

Additionally, in the previous period several new rulings were issued by the Ministry of Finance and Economy, relevant for the tax practice.

Tax Alert, July 2013

Changes and Amendments to the Property Tax Law, May 2013

The Serbian Government has established a Proposition for Changes and Amendments to the Property Tax Law. An overview of the most important changes will be made in the text below.

Changes and Amendments to the Property Tax Law, May 2013

Amendments to the Personal Income Tax Law, May 2013

The amendments to the Personal Income Tax Law (the Law) have been adopted on the session of the National Assembly dated on May 29th, 2013. The purpose of this tax alert is to familiarize all interested parties with the most important amendments to the Law. The Law came into force on May 30th, 2013. According to the published reasons behind passing this Law, essentially, the new legal solutions aim to achieve the folowing goals:

1. Increase in fairness when taxing personal income;

2. Reduction of administrative fees when enforcing tax liabillities;

3. Harmonization and modernization of existing provisions in accordance with changes to other regulations, as well as with changes to sources and forms of income which were the consequence of changes in the conduct of business in the Serbian economy.

 

Amendments to the Personal Income Tax Law, May 2013

Amendments to the Mandatory Social Security Contributions Law, May 2013

The amendments to the Personal Income Tax Law and the Tax Procedure and Tax Administration Law are followed by the changes and amendments to the Mandatory Social Security Contributions Law (the Law).

One significant change is the increase in the rate for mandatory pension and disability insurance contributions from 22% to 24%. That said, in the case that the contributions are borne both by the employee and the employer, the rate for contributions borne by the employee has been increased to 13%, while the rate for contributions borne by the employer remains unchanged, 11%.

 


Amendments to the Mandatory Social Security Contributions Law, May 2013

Changes and Amendments to the Corporate Income Tax Law, May 2013

The reason behind the changes and amendmends to the Corporate Income Tax Law (hereinafter: CITL) was to give support to companies investing in research and development of new products, processes or services. This was achieved by expanding the tax credit to include investments in research and development, which was so far reserved only for investments into the taxpayer's fixwd assets. Additionally, there was an increase in the maximum allowed percentage for deductible expenses for healthcare, charity, sports, culture, and other purposes. Further, certain provisions in the CITL were clarified, such as the conditions for recognizing expenses related to the write-off of individual receivables. An overview of the most important changes is provided below.

Changes and Amendments to the Corporate Income Tax Law, May 2013

Changes and Amendments to the Law on Tax Procedure and Tax Administration, May 2013

One of the reasons behind the changes and amendments to the Law on Tax Procedure and Tax Administration (hereinafter: the Law) is the consolidation of payment obligations for withholding tax, through which all existing tax returns and other forms submitted until now (35 forms) have been replaced by a single tax return. Additionally, the changes also establish the mandatory nature of the acts published by the Ministry of Finance, the possibility of a statute of limitations for mandatory social security contribution, as well as increased punitive measures. The text below contains an overview of the most significant changes.

Changes and Amendments to the Law on Tax Procedure and Tax Administration, May 2013.
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