Serbia: Tax implications of IFRS 9, deductibility of receivables
Guidance issued by the Ministry of Finance concerns corporate income tax implications of IFRS 9
Guidance concerning corporate income tax implications of IFRS 9
Guidance issued by the Ministry of Finance—Opinions no. 011-00-200/2021-04 and 011-00-62/2022-04—concerns the corporate income tax implications of IFRS 9.
- With these opinions, the position of the Ministry of Finance is that a restatement of the opening balance of retained earnings / accumulated losses is considered to be a deductible expense for corporate income tax purposes over a five-year period, regardless whether the requirements for deductibility of the allowance for receivables are met (an expensed allowance for receivables generally is deductible for tax purposes if the receivables are past-due by at least 60 days).
- Expensed impairment of an individual receivable posted after the first application of IFRS 9 is deductible only if the requirements for deductibility of an expensed allowance for receivables are met (expensed allowance for receivables generally is deductible for tax purposes if the receivables are past-due by at least 60 days).
These rules apply also in the case of a simplified approach, using a provision matrix for the impairment of trade receivables.
Expensed impairment of a receivable partially impaired during first application of IFRS 9 is deductible according to rules for deductibility of an expensed allowance for impairment of receivables.
Read a March 2022 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.