New rules for the classification of legal entities

In accordance with the new Law on Accounting, the new rules for the classification of legal entities apply for 2020, based on data from the annual financial report for 2019.

The criteria are as follows to meet two of the three criteria:

  micro legal entities small legal entities medium legal entities large legal entities
Average number of employees <10 10- 50 51 – 250 >250
Operating income <700.000 EUR 700.001 EUR – 8.000.000 EUR 8.000.001 EUR  – 40.000.000 EUR >40.000.000 EUR
Value of total assets at the BS date <350.000 EUR 350.001 EUR – 4.000.000 EUR 4.000.001 EUR – 20.000.000 EUR >20.000.000 EUR

For the conversion of EUR amounts into RSD, the official middle exchange rate determined by the National Bank of Serbia is applied, on the balance sheet date of the regular annual financial report.

Newly established legal entities and entrepreneurs are classified on the basis of data from the financial statements for the business year in which they were established and the number of months of business. If the newly established entity has been operating for less than 12 months:

  • operating income is taken from the Income Statement form, and the threshold value is determined in proportion to the number of active months the current year
  • average number of employees (calculated as the sum of employees at the end of each month in the accounting period, divided by the number of active months),
  • to determine the value of total assets on the balance sheet date, the value on 31.12.2019 is being considered.

Extended deadline for acquiring the status of a qualified new employee

Deadline for acquiring the status of a qualified new employee from Article 21ž paragraph 3 of the Personal Income Tax Law and Article 45đ paragraph 3 of the Law on Social Contributions, for a person who in the period from January 1, 2019 to December 31, 2019 did not have the status of insured employee, ie status of entrepreneur who is the founder, ie a member of the company, and is employed in that company, is moved for a period of 60 days from the day of termination of the state of emergency.


New deadlines for financial reports and more

Government Decree of 16th April 2020 prescribes the postponement of deadlines for the submission of financial reports, tax returns for income tax and income tax from self-employment and annual general meetings.

Below are the new deadlines:

5th June 2020 Deadline for submission of extraordinary financial reports
5th June 2020 Validity of licenses for audit of financial statements

5th July 2020 Validity of licenses for real estate appraisers
5th July Deadline for submission of annual reports of taxpayers whose reporting is regulated by the Law on Capital Market, the Law on Investment Funds or the Law on Open-End Investment Funds with Public Offering

4th August 2020 Deadline for submission of regular annual financial reports
4th August 2020 Deadline for holding annual general meeting
4th August 2020 Deadline for filing corporate income tax returns and self-employed income tax returns

3rd September 2020 Deadline for submission of consolidated annual financial statements