Serbia: Amendments to property tax law, effective 2021

Serbia: Amendments to property tax law, effective 2021

Certain provisions of the legislation amending the property tax in Serbia were effective 1 January 2021, but certain measures have an effective date of 1 January 2022.

1000

Related content

Among the changes to the property tax law are provisions that concern the following:

  • Investment funds: Open-end investment funds and alternative investment funds, that do not have a legal entity status, but which are registered with the competent register in accordance with the law, have become taxpayers of property tax.
  • Real estate groups subject to property tax: Office buildings and other facilities (aboveground and underground) used for performing business activities, include apartments or houses where registered business activities are being performed, and garages intended for parking service activity for vehicles, aircrafts or vessels. The definition of garages has been expanded to include ancillary facilities.
  • Determining of the average price of real estate by the local municipality: This concerns the manner of determining the average price of real estate by a local municipality for use in determining the property tax base.
  • Public facilities: The law defines public facilities as those for public use regardless of the form of ownership (hospitals and health centers, old people's homes, educational and cultural facilities, sports and recreational facilities, post offices, etc.)
  • Determining the property tax base: If the taxpayer, in its business books, does not separately record the value of the land and facility, and the tax base is determined for previous years (during tax audit), the legislation stipulates that the value of the facility is its construction value estimated as of the last day of the calendar year preceding the year for which the tax is determined. Separate rules apply for determining the tax base of processing industry production facilities, storage facilities, cable cars, roads, railways, and other infrastructure facilities.
  • Determining the property tax rate: The tax rate, up to the amounts prescribed by law, are to be determined by the decision of the assembly of the local self-government unit.
  • Tax exemptions: An exemption from property tax on land is extended to situations when the land is permanently given to other persons for the purpose of generating income. Land area of less than 10 acres is still exempt from property tax.
  • Determining property tax for 2021: The property tax will be determined and paid in accordance with the amendments to the legislation as of 2021.


Read a January 2021 report prepared by the KPMG member firm in Serbia

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal