New official translation of IFRS has been published

New official translation of IFRS – International Financial Reporting Standards was published in the “Official Gazette of RS”, number 123/2020.

Application of these translated IFRS is mandatory for regular annual financial statements prepared as of December 31, 2021. Earlier application of the above IFRS is also permitted, with the disclosure of relevant information in the Notes to the financial statements.

The Tax Administration issued a warning notice for not declaring income from abroad

The Tax Administration of the Republic of Serbia, based on available data on payments from abroad and comparing these data with submitted tax returns on calculated and paid tax by self-taxation and related contributions to earnings / other income by a natural person as a taxpayer, found a high rate of non-compliance and identified those individuals.

These revenues are generated through the provision of various types of services, and most often these are software development services, translation, foreign language classes, promotion, graphic design and other types of services. Non-compliance with tax regulations has also been established for natural persons who earn income on social networks (“YouTubers”, “influencers”), online betting and similar, as well as for persons who have rented out their real estate for up to 30 days (“apartment per day”).

The Tax Administration of the Republic of Serbia calls on all natural persons who failed to file tax returns to do so voluntarily before taking any action by the tax authority regarding the committed act or omission, or before starting tax control or submitting a request to initiate misdemeanor proceedings, i.e. to pay taxes and contributions with accrued interest and settles its legal obligations, in order to avoid misdemeanor liability.

The Tax Administration of the Republic of Serbia will continue the continuous implementation of tax controls of natural persons.

This notice applies only to natural persons who have received payments from abroad including payments through PayPal, Western Union, Payoneer and similar platforms.

The taxpayer/natural person is obliged to file a tax return and pay the tax 30 days after earning income from abroad. In case of not submitting the return in timely manner, the taxpayer is obliged to calculate and pay interest as well. By self-reporting, the taxpayer avoids the misdemeanor penalty.