4 Latest Tax Code Amendments in Serbia That Residents and Businesses Must Know

The Tax Processes and Tax Administration Act went through some revisions not too long ago, and on December 20, 2022, those revisions became active and took effect. It is essential to be aware of these shifts; therefore, the following are some of the most crucial ones for which you should keep a close eye.

It is impossible to delay tax payment

To begin, the Act eliminates the provision that formerly permitted taxpayers to postpone the payment of taxes while awaiting a decision on a request to postpone the payment of taxes. This indicates that the Tax Administration may initiate enforcement procedures at any moment, regardless of whether or not a request has been made to do so. It is possible that the procedure of collecting the tax debt may become more expensive if this occurs. This is because the taxpayer will be responsible for paying the costs of enforcement and collection regardless of whether or not their request was approved.

The Online Annualization of Personal Income

One piece of positive information concerns people who make an annual wage that is greater than three times the typical salary in Serbia. They must now submit their yearly personal income tax return electronically through the portal provided by the Serbian Tax Administration, which makes the process simpler and more expedient. Under a system that is referred to as “self-taxation,” the Tax Administration encourages individuals to fill out their tax returns as soon as possible and upload them to the portal no later than April 1 of the year for which the annual tax is calculated. In addition, the deadline for this action has been extended to May 1. As of the first of the year 2023, this rule will apply to personal income tax returns for the previous year, 2022.

Fresh Offenses

In addition to that, the Act has added two more offences to the list of those that are against the law. It is against the law to engage in the unauthorized sale of accounting software, other software, or equipment used for fiscalization. Those who produce, process, sell, or give away fiscalization equipment, accounting software, or other software that could help people evade paying taxes could face a prison sentence of up to five years, and responsible individuals could also be prohibited from engaging in certain activities for a period ranging from one to five years.

Access to a Counselor

Another modification is the addition of an ex officio defense counsel to the courtroom. If a suspect does not offer a defense attorney during the pre-investigation phase, the tax police will select one for them based on their level of cooperation. This is done when there is sufficient evidence to support the hypothesis that the offender violated the Serbian Code of Criminal Procedure by committing a tax offense, the punishment for which can range from four to eight years in prison.

For more information on this or any other legal, tax, or business topic, feel free to write to us at office@statt.rs at any time or call us at phone number +381113281914 every working day from 08:30 to 16:30.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your AK STATT representative, or other competent legal counsel.