The document accompanying the goods in transit may be in electronic form in a tablet

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.

New Law on Auditing

The new Law on Auditing has been published in the Official Gazette of RS, no. 73/2019 from 11.10.2019 and shall enter into force on 1 January 2020. You can find an overview of the new law in our Tax alert.


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.


Serbia was removed from the European gray list of tax jurisdictions, i.e. the list of jurisdictions that do not cooperate in tax matters. In July 2019, Serbia signed the Convention on Mutual Administrative Assistance in Tax Matters (MAC), which is 30.08.2019 endorsed by the Serbian Parliament and will be from effective 1.12.2019.

Specifically, in December 2017, the EU drafted a black and gray list of tax jurisdictions, after identifying ways companies and individuals seek to avoid tax obligations. A place on the gray or black list for countries means poorer reputation and tighter controls in transactions with the EU.

The EU Council of Ministers of Ministers also removed Albania, Switzerland, Costa Rica and Mauritius from the gray list. United Arab Emirates were removed from the black list, while the Marshall Islands switched from black to gray. Blacklisted countries are American Samoa, Belize, Fiji, Guam, Oman, Samoa, Trinidad and Tobago, Vanuatu and the US Virgin Islands.

The Convention on Mutual Administrative Assistance in Tax Matters was developed jointly by the OECD and the Council of Europe in 1988 and amended by Protocol in 2010. The Convention is the most comprehensive multilateral instrument available for all forms of tax co-operation to tackle tax evasion and avoidance.

The Convention facilitates international co-operation for a better operation of national tax laws, while respecting the fundamental rights of taxpayers. It provides for all possible forms of administrative co-operation between states in the assessment and collection of taxes. This co-operation ranges from exchange of information, including automatic exchanges, to the recovery of foreign tax claims.


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)

New Law on Accounting

New Law on Accounting was adopted by the Assembly. More details in our Tax alert.

Amendments to the Corporate Income Tax Law

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.

Amendments to the Law on Tax Procedure and Tax Administration

The Draft Law on Amendments to the Law on Tax Procedure and Tax Administration was published, which among other things:

  • regulates in more detail the connection with the Bankruptcy Law,
  • Introduces an act that will regulate the procedure, manner, deadlines content and form of the statement by which the taxpayer will declare the business premises, which will be adopted by the Minister, on the proposal of the Director of the Tax Administration,
  • that the PIB (tax number) cannot be awarded to an entrepreneur who has tax debt incurred in connection with the activities in other economic entities in which he is at the same time a founder with a share of more than 5%;
  • banks becomes obliged to provide data on taxpayers’ accounts at the request of the Tax Administration,
  • the delivery of the tax act is regulated in more detail
  • it is regulated that the Tax Administration shall take over the tasks of maintaining a unified information system of local tax administrations, no later than 1.1.2021.

Measures to reduce the tax burden on earnings announced

Through the announced amendments to the Law on Personal Income Tax, it will be proposed to increase the non-taxable amount of earnings from RSD 15,300 to RSD 16,300.

Also, the planned amendments to the Law on Compulsory Social Security Contributions include a reduction of the total pension and disability insurance contribution rate from 26% to 25.5% (this refers to the reduction of employer contribution from 12% to 11.5%)

Incentives have also been announced for citizens who have not stayed in Serbia in the past two years, which would reduce the basis for calculating taxes and contributions by 70% in the next five years if they return and find employment in Serbia.

Also, from 1.1.2020. employers who increase the number of employees and employ persons who have not been employed during 2019 will be exempted from paying 70% of payroll taxes and contributions for social contributions for those persons during 2020, or 65% during 2021 and 60 % during 2022.