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Serbia: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 2 December 2020

Initial set of tax measures prescribed in Decree on Fiscal Benefits and Direct Aid to Private Sector and Citizens due to COVID-19 included deferral of payments of salary tax and contributions for salaries paid within 3 months until 4 January 2021, deferral of the advance on due corporate income tax payments for three months until submission of final corporate income tax return, VAT exemptions on certain donations to public institutions, deferral of compliance procedures, and reduction of the default interest rate to the NBS reference rate for late tax liability payment.

Deferred salary tax and contributions liabilities can be repaid in up to 24 installments. Rulebook which will prescribe detailed methods of repayment in instalments is expected to be published in December 2020.

In July, second set of fiscal measures is introduced, extending deferral of payments of salary tax and contributions for salaries paid within 1 month until 5 January 2021.

Entities which opted for both sets of measures can not decrease number of full time employed for more than 10% before expiry of the period of three months from the last payment of direct benefits (no later than 31 December 2020), and can not pay out any form of dividend until 31 December 2020.

On 13 August 2020, the Government adopted the Decree on the Youth Employment Incentive Program "My First Salary" aiming to help youth employment during and after the crisis. For the individuals engaged through this program, National Employment Service will cover contributions for damage sustained due to an injury at work or a professional illness.

Resources

Initial Tax, economic relief measures

Additional Information