New rules for the classification of legal entities

In accordance with the new Law on Accounting, the new rules for the classification of legal entities apply for 2020, based on data from the annual financial report for 2019.

The criteria are as follows to meet two of the three criteria:

  micro legal entities small legal entities medium legal entities large legal entities
Average number of employees <10 10- 50 51 – 250 >250
Operating income <700.000 EUR 700.001 EUR – 8.000.000 EUR 8.000.001 EUR  – 40.000.000 EUR >40.000.000 EUR
Value of total assets at the BS date <350.000 EUR 350.001 EUR – 4.000.000 EUR 4.000.001 EUR – 20.000.000 EUR >20.000.000 EUR

For the conversion of EUR amounts into RSD, the official middle exchange rate determined by the National Bank of Serbia is applied, on the balance sheet date of the regular annual financial report.

Newly established legal entities and entrepreneurs are classified on the basis of data from the financial statements for the business year in which they were established and the number of months of business. If the newly established entity has been operating for less than 12 months:

  • operating income is taken from the Income Statement form, and the threshold value is determined in proportion to the number of active months the current year
  • average number of employees (calculated as the sum of employees at the end of each month in the accounting period, divided by the number of active months),
  • to determine the value of total assets on the balance sheet date, the value on 31.12.2019 is being considered.