LOWEST AND HIGHEST BASIS FOR CALCULATION AND PAYMENT OF CONTRIBUTIONS

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The lowest and highest contribution bases are determined once a year on the basis of the average monthly salary paid in the period from October of the previous year to September of the current year.

The amounts of the lowest and highest contribution bases for 2022 are calculated on the basis of the published data on the average salary in Serbia paid for the period October 2020 to September 2021, which amounted to 88,228 RSD. (“Official Gazette of RS”, No. 112/2021 of 26 November 2020).

The amounts of the lowest and highest contribution bases for 2022 were published in the “Official Gazette of RS”, number 127/2021 from 24 October 2021.

The lowest monthly base for paying contributions for compulsory social insurance for 2022 is 30,880 RSD. The lowest monthly contribution base, in accordance with Article 37 of the Law on Contributions for Compulsory Social Insurance, is the amount of 35% of the average monthly salary in the Republic paid, ie realized in the previous 12 months starting from October of current year.

The highest monthly base for paying contributions for compulsory social insurance for 2022 is 441,140 RSD. The highest monthly contribution base, in accordance with Article 42 of the Law on Compulsory Social Insurance Contributions, is five times the amount of average monthly salary in the Republic paid, ie realized in the previous 12 months starting from October of current year.

The highest annual contribution base for compulsory social insurance for 2022 is 5,293,680 RSD. According to Article 43, paragraph 1 of the Law on Contributions for Compulsory Social Insurance, the highest annual contribution base is the sum of the 12 monthly highest bases.

The period of application of the new contribution bases is from 1.1.2022. until 31.12.2022.

AMENDMENTS TO THE RULEBOOK ON VAT CONCERNING INVOICING

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The Rulebook on Amendments to the Rulebook on Value Added Tax was published in the “Official Gazette of RS”, number 127 of 24.12.2021.
Amendments to the Rulebook were made in order to comply with the regulations in the field of fiscalization and electronic invoicing concerning the issuance of invoices.
Amendments to the Ordinance enter into force on 25.12.2021.
The most important amendments concern the following:

  • The new obligatory element of the advance invoice is the date of receipt of the advance;
  • Fiscal invoice containing data on the personal income tax of the recipient of the fiscal invoice is considered an invoice issued in accordance with the VAT Act and can serve as a basis for exercising the right to deduct previous tax;
  • An electronic invoice issued through a system of electronic invoices is considered an invoice in the sense of ZPDV, although it does not contain information on the place of issuance;
  • An invoice issued to a foreign traveler for the purpose of VAT refund for the sale of goods sent abroad in personal luggage that he carries with him for non-commercial purposes, is also considered a fiscal invoice issued in accordance with the Law on Fiscalization;
  • For VAT refund, diplomatic and consular missions and international organizations are issued a fiscal invoice on which the PIB of the right holder is stated.

Detailed explanations of the amendments to the Ordinance on VAT:
Link: Tax Alert

EXPENSES ON THE BASIS OF SALARY BENEFITS ARE NOT RECOGNIZED IN DOUBLE-INCREASED AMOUNT AS EXPENSES OF SALARIES OF EMPLOYEES ENGAGED IN RESEARCH AND DEVELOPMENT

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(Opinion of the Ministry of Finance, No. 011-00-1157 / 2021-04 of 1 December 2021)

In accordance with the provision of Article 22g paragraph 1 of the Law on Corporate Income Tax (“Official Gazette of RS”, No. 25/01, 80/02, 80/02 – other law, 43/03, 84/04, 18 / 10, 101/11, 119/12, 47/13, 108/13, 68/14 – other law, 142/14, 91/15 – authentic interpretation, 112/15, 113/17, 95/18, 86 (19, 153/20 and 118/21 – hereinafter: the Law), as an expense in the taxpayer’s balance sheet may be recognized, in double the amount, costs directly related to research and development performed by the taxpayer in the Republic of Serbia.

AVERAGE SALARIES AND WAGES PER EMPLOYEE, OCTOBER 2021

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Average gross salaries and wages calculated for October 2021 amounted to 91 132 RSD, while average net salaries and wages amounted to 66 048 RSD.

Increase of gross salaries and wages in the period January – October 2021, relative to the same period last year amounted to 8.2% in nominal terms, i.e. 5.7% in real terms. Simultaneously, net salaries and wages increased by 8.9% in nominal terms and by 5.3% in real terms. 

Compared with the same month last year, average gross salaries and wages for October 2021 increased by 9.7% in nominal terms and by 2.9% in real terms, while average net salaries and wages increased by 9.9% in nominal terms and by 3.1% in real terms.

Median net salaries and wages for October 2021 amounted to 50 000 RSD, meaning that 50% of employees realized wages and salaries up to the mentioned amount.

SOURCE: Statistical Office of the Republic of Serbia

NEW YEAR AND CHRISTMAS NON-WORKING DAYS

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In accordance with the Law on State and Other Holidays in the Republic of Serbia (“Official Gazette of the Republic of Serbia”, No. 43/01, 101/07 and 92/11), non-working days for the New Year and Christmas Eve are:

January 1, 2 and 3* (Saturday-Monday) – New Year

January 7 (Friday) – Christmas

If one of the dates when the public holidays of the Republic of Serbia are celebrated is a Sunday, the first following day is non-working (Article 3a of the Law on State and Other Holidays in the Republic of Serbia).

ANNUAL LISTING OF ASSETS AND LIABILITIES AS OF 31 DECEMBER 2021

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The obligation and way of conducting the stocktaking are regulated by the Law on Accounting (“Official Gazette of RS”, No. 73/2019 and 44/2021 – other law) and the Rulebook on the manner and deadlines for conducting the stocktaking and synchronizing the bookkeeping situation with the actual situation (RS Gazette, No. 89/2020).

  • The deadline for submitting the Regular Census Report for 2021 for adoption is January 30, 2022.
  • The deadline for the adoption of the Decision on the adoption of the Report on the conducted regular stocktaking for 2021 is January 30, 2022.
  • The calculation of VAT on determined deficits is done in the calculation of VAT for the month of January 2022

EXTENSION FOR IMPLEMENTATION OF E-INVOICE SYSTEM ANNOUNCED – THE BEGINNING OF IMPLEMENTATION WILL BE POSTPONED TO MAY 1, 2022

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At the meeting on application of electronic invoicing system, the Minister of Finance announced that the Law on Electronic Invoicing will be amended by the end of the year and that a transitional deadline will be given for adjusting the e-invoicing system by the end of April 2022.
This means that the beginning of the application of the Law on Electronic Invoicing for public sector entities and for private sector entities that issue invoices to public sector entities, instead of January 1, 2022, will be postponed to May 1, 2022.

Other deadlines from the Law on Electronic Invoicing will not change.
Therefore, the obligation of a public sector entity to receive and store electronic invoices and to issue electronic invoices to another public sector entity first applies, and this will apply from May 1, 2022, instead of January 1st, just as the obligation of a private entity sector to issue an electronic invoice to a public sector entity.

The obligation of the private sector entity to receive and keep the electronic invoice issued by the public sector entity, as well as the electronic invoices issued by the private sector entity, will apply from July 1, 2022, as planned. Also, the obligations of issuing and keeping electronic invoices in transactions between private sector entities take effect from January 1, 2023.

A demo version of the eInvoice system is available on the e-Invoice website