Vesti iz privrede

The Government of Republic of Serbia has proposed changes and amendments of following laws to the National Assembly of Republic of Serbia:

  • Corporate Income Tax law
  • Personal Income Tax law
  • Law on mandatory social contributions
  • Labour law
  • VAT law

Key amendments of Corporate Income Tax law are:

  • Narrowing services which are subject to withholding tax on services of market research,  accounting and audit services and other legal and management consulting services, regardless the place of providing or using services
  • Withholding tax return is filed in 3 days from the day of payment
  • In case of selling fixed assets to a related party, on the basis of which capital gain (loss) is calculated, tax payer is not obliged to assess the price  according to the ”arm’s length” principle, since market price is used in calculating capital gain (loss)
  • In case a fixed asset is consisted of movable and immovable parts, it is grouped in a depreciation group on the basis of the way it is recorded in tax payer’s business books
  • Intangible assets (which used to be grouped in the second depreciation group) will be amortised for tax purposes by using straight-line method during assessed useful life
  • The obligation of filling tax return in case of cancelling liquidation process
  • Fiscal year will not be equal to calendar year in case of ending and beginning of operating activities during a year, i.e in cases of statutory changes, entering bankruptcy or liquidation, cancelling bankruptcy in case the bankrupt company is sold as a legal entity and cancelling liquidation process

Key amendments of Personal Income Tax law are:

  • Nontaxable part of salary is raised from 11.790 RSD to 15.000 RSD
  • The implementation of right to refund salary tax for newly employed is prolonged to the December 31st 2019
  • An employer- newly found company or sole trader can be free from founder’s/sole trader’s salary tax, as well as from employees’ salaries tax (up to nine employees). This right can be granted for the tax period of establishment and the next tax period, for all salaries paid up to the December 31st of that tax period. Founder/sole trader can utilize this tax exemption only once, either as a founder or a sole trader.
  • Income employees generate at the end of their work engagement (such as severance pay)  have status of salary
  • Sole traders are obliged to double entry bookkeeping system
  • Salary tax is not paid on payments made to an employee for healthcare services in Serbia and abroad, up to the exact costs of healthcare services and related accommodation and travel

Key amendments of Law on mandatory social contributions are:

  • An employer- newly found company or sole trader can be free from founder’s/sole trader’s salary contributions, as well as from employees’ salaries contributions (up to nine employees). This right can be granted for the tax period of establishment and the next tax period, for all salaries paid up to the December 31st of that tax period. Founder/sole trader can utilize this tax exemption only once, either as a founder or a sole trader.
  • The implementation of right to refund salary contributions for newly employed is prolonged to the December 31st 2019

Key amendments of Labour law are:

  • People who are engaged according to the Labour agreement or any other type of working engagement must be registered for mandatory social contributions before the beginning of their working engagement
  • Obligatory daily records of overtime. In case employer does not keep this record, the law prescribes monetary fines from 150.000 RSD to 300.000 RSD for legal entites, 50.000 RSD to 150.000 RSD for sole traders and 10.000 RSD to 20.000 RSD to legal entity’s representative

Key amendments of VAT law are: 

  • The review of  VAT calculation (according to the new Rulebook on VAT) will be filed from the July 1st, 2018
  • Place of sales of unique tourism services is the place of service provider’s residence or a residence of its permanent establishment

For additional information and consultation, please contact our team.

Proposed changes and amendments of tax laws by Government of Republic of Serbia

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