The government of Serbia issued a decree that includes tax relief measures to mitigate the economic consequences of the coronavirus (COVID-19) pandemic. The measures aim to increase taxpayers' liquidity and are effective 20 March 2020.
The measures aim to increase taxpayers' liquidity and are effective 20 March 2020.
For taxpayers granted a deferral for paying taxes during the state of emergency, effective for the installment due in March 2020, the tax authorities will not cancel a “decision” for a delay of a tax payment or will not initiate a forced collection procedure. During this period, no default interest will be charged on the tax debt.
The decree provides for a 10 percentage points reduction in the default interest rate for underpayments or overpayments of tax, so that it now becomes equal to the National Bank of Serbia (NBS) annual reference rate. Given the current annual reference rate of the NBS, the default interest rate has been reduced from 11.75% to 1.75% per annum effective 20 March 2020.
Read a March 2020 report prepared by the KPMG member firm in Serbia
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