Entries by krestonmdm

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: JUNE 5th June 2020 Deadline for submission of extraordinary financial reports 5th June 2020 Validity of licenses for audit […]

Amendment of the Decree on Fiscal Benefits and Direct Payments

Amendments to the Decree on Fiscal Benefits and Direct Benefits to Private Companies and Financial Assistance to Citizens to Mitigate the Economic Consequences of COVID-19 Disease were published in the Official Gazette of the RS, no. 60 of April 24, 2020. The changes are as follows: Article 9 June tranche of direct payments – the […]

New deadlines for submission of financial statements and tax return

Government of Republic of Serbia has adopted Decree regulating delay of deadlines for submission of annual and consolidated financial statements of companies, cooperatives, other legal entities and entrepreneurs, as well as deadlines for filing company and self-employment income tax returns. The deadline for submission of annual financial statements with the auditor’s report for all taxpayers […]

Prescribed Form for presenting information on persons for whom a large legal entity is entitled to the payment of direct benefits

The Government of the Republic of Serbia adopted the Rulebook on the Contents of the Form for presenting information on persons for whom a large legal entity is entitled to the payment of direct benefits, which entered into force on 15.04.2020. The Rulebook prescribes a Form for presenting information on persons for whom a large […]

Decree governing the financial support program was adopted

On 10.04.2020. a Decree was adopted to mitigate the economic consequences of pandemic. The program defined in this Decree relates to the granting of credit facilities to business entities for liquidity management and working capital. Board of Directors of Development Fund (Fond za razvoj), in accordance with this program, will determine the more detailed criteria […]

Decree on fiscal benefits

Government has adopted the decree on fiscal benefits and direct payments to companies in private sector and financial aid to citizens in order to mitigate the economic consequences caused by disease covid-19 in order to mitigate the economic consequences of pandemia. You can read more in our Tax Alert on this subject which you can […]

Conclusion of the Government of Serbia regarding holiday leave

The Government of Serbia has issued a Conclusion recommending employers in the territory of the Republic of Serbia to enable those who are obliged to perform regular work duties in state of emergency, to use the holiday leave for 2019 by the end of 2020. During state of emergency, for those employees who are allowed […]

Qualified newly employed status and continued self-employment

According to the opinion of the Ministry of Finance RS No. 430-00-44 / 2020-04 dated 12.02.2020 when, after having been employed and having acquired the status of a qualified new employee in accordance with the conditions laid down in Article 21ž of the Law, that person continues to pursue an self-employment activity as an additional […]

Employee movement during curfew

Business entities are obliged to issue to each employee who performs his / her tasks from 5pm  to 5 am, and for which an agreement has been obtained, that it is exempted from the implementation of the Order on the Prohibition and Restriction of Movement of Persons in the Territory of the Republic of Serbia. […]

Announced set of measures by the Government of Serbia to help the economy

The Serbian government has announced a set of measures to help the economy. An official legislation and a full implementation guide are expected in the next 10 days. Furthermore, the announced measures will help companies that have laid off less than 10% of employees The following measures are announced: Postponing of payment of due tax […]

Business in times of corona

The state of emergency in the Republic of Serbia was declared on March 15 due to the pandemic of the Corona virus 19. There have been many changes in the operations of the companies from day to day. In order to protect the health of employees, many companies organized work from home, the regime of […]

Two new calculators within the Kreston MDM BusinessINFO application

Our Kreston MDM BusinessINFO app now has two new calculators that can make your day-to-day business easier. The annual personal income tax calculator fully assists not only in the calculation but also in completing the PPDG-2R tax form. The deadline for filing this tax return is May 15 of the current year for the previous […]

Instruction to business entities prescribing the exact manner of issuing a permit for movement of employees during curfew

The Ministry of Economy has issued an Instruction to business entities prescribing the exact manner of issuing a permit for movement of employees during curfew. It is necessary to create a list of employees on this form https://privreda.gov.rs/wp-content/uploads/2020/03/PolijskiCas.xls And submit it to the Ministry of Economy at vanrednostanje@privreda.gov.rs After that, the employer issues to the […]

Notice of work due to the COVID-19 virus pandemic

We would like to inform you that in accordance with the recommendations of the Government of the Republic of Serbia, Kreston MDM has taken all necessary measures to prevent the spread of the COVID-19 virus. In order to protect the health of our clients, as well as the health of our employees, all meetings and […]

DTT between Serbia and Israel

The double taxation treaty between Serbia and Israel began to apply from 1.1.2020. The taxes to which this Agreement applies are: In Israel: personal income tax and corporate income tax (including capital gains tax) income tax on the alienation of property which is subject to taxation in accordance with the Law on Real Estate Taxation […]

Non-taxable income for individuals in 2019 – RSD 2,729,304

The non-taxable amount of complementary annual income tax in 2019 is RSD 2.729.304, so all natural persons who have earned income above this amount are required to file a tax return for the complementary annual income tax. Individuals subject to annual tax are residents of Serbia for income earned in the country and abroad, as […]

For compensation of the costs of arrival and departure from work tax rate of 10% is applicable, but no contributions are paid

Ministry of Finance has published on 1.2.2019 an opinion on documenting the costs of arrival and departure from work for employees. Each company has an obligation to properly document the costs, ie it is necessary to keep a record every month whether travel expenses for employees are covered and that there are documents justifying the […]

APR: application for submission of reports is active

The Agency for Business Registers (APR) has issued a notice that as of 20.01.2020 access to the application for submission of reports through the Agency’s Special Information System is enabled, which provides a unique procedure for entering, controlling, signing and submitting statistical reports and financial reports with the prescribed documentation for 2019. This year, the […]

CENTRAL REGISTRY OF ULTIMATE OWNERS

Ministry of Economy has announced that misdemeanor reports will be filed against legal entities that do not register the ultimate owners in the Central Registry, and requests for instituting misdemeanor proceedings will be filed by the Agency for Business Registers (APR) after the prescribed deadline. The fine for this type of offense ranges from 500,000 […]

New Tax alert

On 06.12.2019 The National Assembly adopted the following amendments to the Law: Law on Compulsory Social Security Contributions Law on personal income tax Property Tax Law Corporate Income Tax Law Law on Tax Procedure and Tax Administration The laws were published in the “Official Gazette of the RS” No. 86 dated 06.12.2019. Most amendments are […]

Reduced pension contribution rate from 12% to 11.5%

By adopting the Law on Amendments to the Law on Compulsory Social Security Contributions (Official Gazette of RS, No. 86/2019) the rate of pension contribution at the expense of the employer is reduced from 12% to 11.5%. The new rate will be applicable from 1.1.2020.

Old employment benefits

The deadline for using the old employment benefits has been extended to 31.12.2020. From next year, claims for tax refunds and contributions will be submitted on special forms, which will be prescribed by the Minister of Finance by a by-law. The deadline for passing the by-law is April 2020.

New Laws

The National Assembly is 6.12.2019. adopted the Proposal of Decision on approval of the Decision on amendments to the Financial plan of the Social Security Fund for Military Insureds for 2019, submitted by the Government, as well as the Bill on Amendments to the Law on Contributions for Compulsory Social Security, the Law on Amendments […]

Rulebook on the determination of telecommunications services and services provided electronically

In Official Gazette no. 75/2019 of 23.10.2019. Rulebook on the determination of telecommunications services and services provided electronically, within the meaning of the Law on VAT, and on establishing criteria and assumptions for determining the headquarters, permanent establishment, residence or residence of the recipients of telecommunications, radio and television broadcasting services and services provided electronically, […]

New Year and Christmas gifts

Employee benefits in respect of gifts for children for the New Year and Christmas are not considered earnings up to the amount of the prescribed non-taxable amount, which is now 9,784 dinars per year per child. Gifts of greater value than non-taxable amount, gifts to children of employees over 15 years of age, as well […]

Extension of the deadline for the new codebook of occupations

It is proposed to extend the deadline for updating the data in the Central Registry for the applicants for the single application for compulsory social security by another year, ie until December 31, 2020. Namely, after 28 years, Serbia has adopted a new Codebook of occupations, which includes jobs that have emerged in the labor […]

Amendments to the Law on brokerage and lease of real estate

The Government of the Republic of Serbia has adopted the Proposal of the Law on Amendments to the Law on Real Estate Brokerage and Leasing. Among other things, the draft law provides for the amendment of Article 5, which defines the conditions for entry in the Register of Real Estate Brokers: 1) An entrepreneur or […]

The new classification rules apply from 2020 onwards

(Opinion of the Ministry of Finance, No. 011-00-916/2019-16 as of 29 October 2019) The provisions of Article 6, paragraph 1 of the Law on Accounting (“Official Gazette of the RS”, No. 73/2019 – hereinafter: the Law) stipulate that legal entities and entrepreneurs, within the meaning of this Law, shall be classified as micro, small, medium […]

Extended period to 12/31/2020 for use of old tax incentives

The Law on Amendments to the Law on Personal Income Tax and the Law on Contributions for Compulsory Social Security stipulate the extension of the deadline for the use of old tax benefits for the employment of new persons until 31.12.2020. However, it is stipulated that claims for tax and contributions refunds should be submitted […]

Entrepreneur Independence Test

The Law on Amendments to the Law on Personal Income Tax introduces the Entrepreneurship Independence Test to be introduced on 1.3.2020. Five of the nine criteria finally proposed were corrected, following public hearings held in Belgrade, Niš, Novi Sad and Kragujevac. After the changes, the criteria are: 1. the principal or related party with the principal […]

Documenting expenses for coming to work – Law amendments

After the adoption of the amendments to the Law on personal income tax, employees will have to document to their employers all expenses for coming to work, except if the employer pays a monthly transport pass by direct payment through the invoice to the city carrier. The most recent changes – through the addition of […]

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 […]

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.

TAX TREATMENT OF THE RECEIPTS OBTAINED BY A NATURAL PERSON FROM A LEGAL ENTITY (NOT EMPLOYER), ON THE BASIS OF FINANCIAL AID FOR THE PURPOSES OF MEDICAL TREATMENT ABROAD

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, […]

INTERNATIONAL COOPERATION OF TAX ADMINISTRATIONS WILL BEGIN

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 […]

AMENDMENTS TO COMPANY LAW

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: detailed regulation of the treatment of own shares (application from 1.4.2020) the possibility of distributing retained earnings to employees (Article […]

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 […]

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, […]

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 […]

PROPOSAL FOR AMENDING PERSONAL INCOME TAX LAW

As announced by the Government of the Republic of Serbia, the amendments to the Law on Personal Income Tax, which would enter into force on January 1, 2020, in the next few weeks will be brought before the National Assembly. A proposal of a set of measures for youth employment would include amendments to the […]

Government adopts proposal of law on accounting

The Government of Serbia adopted Proposal of the Law on Accounting on 16.9.2019. According to the Report on the Public Hearing on the Draft Law on Accounting, published by the Ministry of Finance, the following comments or suggestions are accepted fully or partially: Clearer wording in certain definitions in Article 2 of the Draft Law […]

Proposal for amending the vat law

The Law on Amendments to the Law on Value Added Tax is currently in the parliamentary procedure. It is stipulated that this Law will enter into force eight days from the day of its publication in the Official Gazette of the Republic of Serbia, and its implementation will commence on 1.1.2020 except for the provisions […]

Minimum wage

The minimum wage, excluding taxes and contributions for compulsory social security, for the period January – December 2020 will be 172.54 RSD (net) per hour. The current minimum labor cost is 155.30 din per hour. Therefore, the net minimum wage for payments during 2020 will be: 27.606,40 RSD per month with 160 working hours 28.986,72 […]

Opinion of the Ministry of Finance about tax exemption

In accordance with the opinion of the Ministry of Finance No. 011-00-920 / 2018-04 of 10.7.2019. the tax exemption with the right to deduct the previous tax for the shipment of goods abroad, i.e. for the export of goods, can only be obtained by the taxpayer – the owner of the goods being exported, if […]

The Ministry of Finance, in collaboration with USAID, has prepared a draft Rulebook on services provided electronically

The Ministry of Finance, in collaboration with USAID, has prepared a draft Rulebook on services provided electronically, within the scope of VAT Law. The aim of the new Rulebook is to align legislation with new services and new ways of providing services in the digital age. The draft supplements the provisions of the existing Rulebook […]

“My LPA” mobile phone application

From 8/13/2019 taxpayers may inquire about the status of property tax liability for the territory of the Republic of Serbia through the application for mobile phone “My LPA”, which is free and available in versions for Android and iOS operating system.I In order to complete the inquiry, it is necessary to obtain a username and […]

Registration number is a mandatory element of external correspondence

The Companies Act provides that company documents sent to third parties should include, inter alia, the company identification number. Failure to comply with this provision constitutes a misdemeanor for which a fine for companies is stipulated (between RSD 100.000 and RSD 1.000.000). The new Trade Law further defines that the registration number is a mandatory […]

Notice on taxation of income from the provision of hospitality services by a natural person

The Ministry of Finance has issued a Notice regarding taxation of income from the provision of catering services in domestic crafts and rural tourism households by an individual. The Rulebook on Terms, Criteria and Elements for Taxation of Revenues Based on the Provision of Hospitality Services was previously published. The Regulation is effective from 1.7.2019. […]

Implementation of the Law on Lobbying begins

Implementation of the Law on Lobbying begins on 14 August 2019. The Law regulates the lobbying activities, the rules of lobbying, registers, records and other important issues. Lobbying can be carried out by either an individual or a legal entity who is registered as lobbyist, but the Law also recognizes “unregistered lobbyist” – a legal […]

Reference interest rate cut to 2,5%

At the session held on August 8, 2019, the Executive Board of the National Bank of Serbia decided to cut the reference by 0,25 percentage points to 2,5%. The next session of the Executive Board should be held on September 12, 2019.

Draft Law on Accounting and Draft Law on Auditing

The Ministry of Finance has published on its website the Draft Law on Accounting and the Draft Law on Auditing, with a call for public debate between 12.8 and 02.9.2019. Interested parties may submit their comments and suggestions in the comment form, in writing to the Ministry of Finance, at the address: Kneza Miloša 20, […]

THE NEW LAW ON GDPR

The new Personal Data Protection Act, which was passed last year, will begin to apply on August 21, 2019. The law imposes a number of obligations on all legal entities, especially those who operate with a large number of users and perform data processing of any kind, and prescribes harsh penalties for non-compliance with the […]

New codebook of occupations

After 28 years, Serbia has adopted a new Codebook of occupations, which includes jobs that have emerged in the labor market in the last three decades. The Unique Nomenclature of Occupations from 1990 has been in use so far. By the end of 2019, employers are under an obligation to update their employee data according […]

TAX ALERT – Employee recreation rulebook

On our website you can access the tax alert regarding the new “Rulebook on exercising the right to tax exemption based on the organization of recreation, sporting events and activities for employees”. https://krestonmdm.com/wp-content/uploads/2019/08/Tax-Alert_rekreacija-2.pdf    

Turistički aranžmani u inostranstvu ubuduće će se plaćati po zvaničnom srednjem kursu dinara

Prilikom isticanja cene i naplaćivanja turističkih aranžmana u inostranstvu ubuduće će se primenjivati zvanični srednji kurs dinara. To je propisano novim Zakonom o trgovini, koji je usvojila Narodna skupština Republike Srbije. Ovakvo rešenje prihvaćeno je tokom izrade predloga zakona, a na predlog Narodne banke Srbije. Na ovaj način rešeno je dugogodišnje pitanje naplate turističkih aranžmana […]

New tax Rulebooks

In the Official Gazette of RS, number 50/2019, new rulebooks in the field of tax regulations have been published. In the area of corporate income tax, the following rulebooks were published: Rulebook on the conditions and manner of exercising the right to recognition of costs directly related to research and development in the tax balance […]

Reference interest rate cut to 2,75%

At the session held on July 11, 2019, the Executive Board of the National Bank of Serbia decided to cut the reference by 0,25 percentage points to 2,75%. The next session of the Executive Board should be held on August 8, 2019.

From 01. 07. 2019. the organizational transformation of the Tax Administration of the Republic of Serbia entered into force

From 01. 07. 2019. the organizational transformation of the Tax Administration of the Republic of Serbia entered into force. In accordance with the Tax Administration Transformation Program, the number of organizational units in the territory of Serbia in August 2017 decreased from 178 to 78. The next step was further consolidation of the organizational units […]

New VAT Rule Book came into force on 01/07/2018

After being postponed for several times, the new VAT Rule Book came into force on 01/07/2018 introducing new records, as well as the obligation of taxpayers to submit a VAT calculation, together with the VAT return. The Tax Administration of the Republic of Serbia has published on its website the User Manual for presenting of […]

Obtaining credible accounting documents by employers and employees

The American Chamber of Commerce sent a letter to the Ministry of Finance indicating the examples of relevant credible documents discussed at the meeting and which as such could be introduced as rules for acting in the general documents of employers. Obtaining credible accounting documents by employers: In case of using one’s own car: usage […]

New regulations related to customs business operations

New regulations in the area of customs operations, which govern customs privileges, protection of intellectual property rights at the border and the conditions for reducing or excluding customs duties on certain goods, have been harmonized, harmonizing the legislation of the Republic of Serbia with the European Union in the area of the customs system: 1) Decree […]

Deadline for submission of regular annual financial statements and fiscal balance sheet

Regular annual financial statements of legal entities whose business year ended on Dec. 31, 2018. should be delivered no later than June 30, 2019. In addition to the regular annual financial statements, legal entities are obliged to submit to the Business Registers Agency the following documents: – Decision on adoption of regular annual financial statements […]

Reference interest rate stays at 3%

At the session held on June 6, 2019, the Executive Board of the National Bank of Serbia decided to keep the reference interest rate at 3.0%. The next session of the Executive Board should be held on July 11, 2019.

Priority basis for insurance of retired persons who entered into an employment agreement before 11th of April 2019

The new insurance policies provided for in Article 15 of the Law on Health Insurance apply to retirees who have entered into an employment agreement before April 11th, 2019, and indisputably also to retirees who have entered into an employment agreement after April 11th, 2019. “Article 15 of the Law on Health Insurance (“Official Gazette […]

The new Law on Health Insurance

The new Law on Health Insurance (Official Gazette of RS, No. 25/2019) entered into force on April 11th , 2019. It shall apply to all proceedings commencing from that date. Some of the most significant changes are the following: The law regulates that parents have the right to sick leave with the income of a […]

Rule-book on interest rates for 2019

Pursuant to Article 61, paragraph 3 of the Legal Entity Profit Tax Law (“Official Gazette of the Republic of Serbia”, 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 and 95/18), Minister of Finance adopted the Rule-book […]

TAX ADMINISTRATION OF THE REPUBLIC OF SERBIA STARTS WITH ELECTRONIC CONFIRMATION

All E-Porezi Portal users will be able to receive tax certificates electronically starting March 1st 2019. Tax Administration of the Republic of Serbia has enabled the issuance of electronic certificates on paid taxes from all payment accounts of public revenues, certificates on paid health insurance contributions, certificates on paid VAT, and certificates on paid taxes […]