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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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