Measures providing tax relief as well as direct financial aid to certain companies in response to the coronavirus (COVID-19) pandemic are included in a decree that was published in the official gazette on 10 April 2020.
The procedures and manner for the deferral of tax liabilities and social security contributions, as well as the form that large corporate entities will need to submit in requesting direct economic grants, will be prescribed by a special “rulebook” to be issued by the Ministry of Finance. The determination as to whether an entity is a large corporation will be based on 2018 financial statements. Entities that receive this direct aid cannot pay dividends until the end of 2020. Entities that were established in 2019 or 2020 will be considered to be small entities.
The tax relief includes deferral of the payment of salary tax and contributions (on behalf of the employee and on behalf of the employer) on salaries for March, April, and May 2020. Entities that paid their March salary before 10 April 2020 (either in part or in full) may elect to defer payment of tax and contributions for April, May, and June 2020.
Certain entrepreneurs will be able to defer paying their tax advance payments and contributions on self-employed income for the months of March, April, and May 2020 until 4 January 2021. Payment can be made in 24 equal monthly installments without interest.
Read an April 2020 report [PDF 333 KB] prepared by the KPMG member firm in Serbia
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