The National Assembly adopted the Law on Amendments to the Law on Tax Procedure and Tax Administration, which was published in the Official Gazette of the RS, No. 144/20 of November 27, 2020.

The law enters into force on the eighth day from the day of its publication, on December 5, 2020, and certain provisions will be applicable later.

The most important changes relate to the following:

  • Open-end investment funds, ie alternative funds, which do not have the status of a legal entity, are considered a taxpayer who has all the rights and obligations in accordance with the provisions of the Law
  • The taxpayer may submit in electronic form through the portal of the Tax Administration a request for refund or transfer of higher or incorrectly paid tax – applicable from January 1, 2021
  • Amendments related to the allocation of PIB refer to another exception when the Tax Administration may grant PIB, and the transitional provision stipulates that the taxpayer, if he meets the conditions from the new exception, may submit a request for refund of PIB
  • The Business Registers Agency may not register the acquisition of shares or stocks in economic entities, ie the establishment of new economic entities, where a legal entity or entrepreneur is registered as the founder over whom the measure referred to in Article 29, paragraph 9 of the Law has been established. The provision stipulates a fine for the misdemeanor.
  • It is specified that the tax act can be submitted in electronic form to a natural person who submits tax returns in electronic form, through the portal of the Tax Administration, in which case no additional consent of the natural person is required.
  • The delivery of tax documents is specified by sending a registered item
  • The possibility of fulfilling the tax obligation by giving instead of paying, ie replacing the fulfillment when the tax obligation is higher than 50.000.000 dinars, in the manner and under the conditions determined by the RS Government by decision, and only in cases where there is interest of the Republic to acquire the property.
  • Deferment of payment of due tax, ie overdue tax liabilities is approved in the manner and under the conditions determined by the Government, in order to mitigate the economic consequences caused by pandemic, force majeure, or other extraordinary event occurring during the calendar year, and is applied retroactively – from January 1, 2020
  • Introduced a new tax offense – tax fraud related to value added tax
  • The Tax Administration will take over the management of the unified information system of local tax administrations by January 1, 2022 at the latest.

More details in our Tax Alert.