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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 […]