Archive for month: October, 2019

According to the Opinion of the Ministry of Trade, Tourism and Telecommunications, no. 011-00-00373 /2019-03 dated 24/09/2019 the goods in transit must be accompanied by documents that are directly related to the carriage of the goods and which in particular contain: the number and date of the document, business name, address, PIB and registration number or agricultural holding (BPG), or the number from the relevant register of the supplier, consignee and carrier (if any), location and address of the facility from which it is delivered and to which it is delivered, the name, surname and signature of the responsible persons of the supplier and carrier, the name of the goods and the quantity. The documents may be the original or a copy. The documents may take the form of an electronic document.

Therefore, the Opinion stipulates that the documentation containing the information prescribed by Article 29 of the Law on Trade (“Official Gazette of the RS”, No. 52/2019), which is in electronic form in a tablet, is considered an electronic document.

In accordance with the opinion of the Ministry of Finance, no. 011-00-616 / 2019 of 20/08/2019 If, for the purposes of treatment of a natural person, a legal entity (in which the physical person is not employed) provides and pays certain funds for the purposes of treatment in the appropriate health institution abroad (as stated, treatment in Serbia could not be carried out without risk and with great lasting harmful effects) by paying the funds in the amount of part of the costs of treatment directly into the personal account of a natural person who previously paid the costs of treatment to the account of that medical institution according to the invoices of the medical institution from abroad conducting the treatment from his / her personal account, we believe that the income received by an individual in this way has the character of non-taxable receipt.

The Ministry of Economy has prepared a draft Law on Amendments to the Company Law, which is scheduled for public debate to be held in the period 10-29. October.

The draft provides for the following:

1. detailed regulation of the treatment of own shares (application from 1.4.2020)
2. the possibility of distributing retained earnings to employees (Article 270)
3. increasing the threshold for remuneration of members of the board of directors, that is, the executive and supervisory boards from 3% to 5% of shares within the business year (Article 282)

Among other changes, the amendment of the Corporate Income Tax Law is expected to be enforced by the end of year.

The most important change concerns additional reporting on business within international groups, which has already been implemented in almost all European countries. The report is intended to be aligned with the BEPS. According to BEPS Action Plan 13, all large multinational enterprises (MNEs) are required to prepare a Country-by-Country report with aggregated data on the global allocation of income, profits, taxes paid and economic activities among the tax jurisdictions in which they operate. This CbC report is shared with tax administrations in these jurisdictions, for use in high level transfer pricing and BEPS risk assessments.

The amendments to the Law define an international group of related legal entities as a group of entities that are interconnected by ownership or control in terms of IASs or IFRSs, and whose total consolidated income is recognized in the consolidated financial statements for the period preceding the reporting period at least EUR 750 million in RSD equivalent at the average exchange rate of the National Bank of Serbia at the date of adoption of the consolidated financial statements, and:

• one or more of group members has an obligation to prepare, present, submit and disclose consolidated financial statements in accordance with IAS or IFRS, or would have that obligation if it were a legal entity whose shares are traded on a regulated market in the Republic Serbia or outside Serbia
• in which at least one legal entity is a resident of another tax jurisdiction in relation to other members of the international group, or at least one legal entity is a resident of one tax jurisdiction and is subject to taxation in another tax jurisdiction based on performing business activity through a permanent establishment.

The CbC report will be submitted no later than 12 months after the end of the business year for which the annual report is submitted, and the Minister of Finance, relying on sources related to good practice in reporting on controlled transactions of the OECD, will be closer to arrange the conditions and manner of submission of the annual report. The first application of this requirement is for the tax period beginning in 2020.

Other amendments are regarding the capital gain, i.e. loss of investment funds, as well as the granting to bank (as taxpayer) the right to a tax credit of 2% of the remaining debt determined in accordance with the Law on conversion of home loans indexed in CHF.