Government of the Republic of Serbia adopts decree...

GOVERNMENT OF THE REPUBLIC OF SERBIA ADOPTS DECREE ON THE TAX MEASURES IN ORDER TO MITIGATE THE ECONOMIC EFFECTS OF A DISEASE COVID-19 CAUSED BY SARS-COV-2

Economic measures of the Government of the Republic of Serbia issued in accordance with the Decision on imposing a state of emergency due to illness COVID-19 - Decree on the tax measures during the state of emergency in order to mitigate the economic effects of a disease COVID-19 caused by SARS-CoV-2

On 20.03.2020 the Government of the Republic of Serbia brought a Decree on the tax measures during the state of emergency in order to mitigate the economic effects of a disease COVID-19 caused by SARS-CoV-2 (hereinafter: the Decree). The Decree was adopted in accordance with the Decision on imposing a state of emergency due to illness COVID-19 for the territory of the Republic of Serbia through which the Government as the competent authority constituted a set of the following tax reliefs:

1. According to taxpayers - legal entities, entrepreneurs, farmers and natural persons who have an approved deferral of payment of tax owed within the meaning of article 73-74b of the Law on Tax Procedure and Tax Administration, during the state of emergency will not take measures stipulated in article 74 paragraph 7-9 of the Law on Tax Procedure and Tax Administration (collateral collection of tax) as of installment which is due at March 2020,

2. During the state of emergency, the Tax Administration will not revoke the Tax agreements ex officio nor cancel the Decision on the removal of the payment of the tax and will not implement enforced collection of taxes wherein the period indicated will not charge interest for the purposes of articles 75 and 76 of the Law on Tax Procedure and Tax Administration,

3. To Taxpayers - legal entities, entrepreneurs, farmers and natural persons during the state of emergency in the amount of more or less paid taxes and other fiscal fees except interest, calculated and paid interest at an annual rate equal to the reference rate of the National Bank of Serbia.

The provided Decree represents one of the economic measures of the Government of Republic of Serbia aimed alleviating the economic effects made by the disease COVID-19 and increasing the liquidity of the tax payers. The text of the Decree, firstly refers to all legal entities, entrepreneurs, farmers and natural persons who concluded the tax agreement regarding the delay of payment of the tax liability and securing the collection of the same with the Tax Administration prior to the state of emergency, and then to all legal entities which will during the state of emergency settle their obligation and pay the tax liability with the described method of charging interest. Currently, the Decree is only regulating the issue of the tax liability of legal entities and their further treatment of obligations to the Tax Administration in the course of the epidemic COVID-19 and will it remain the only one, remains to be seen in the forthcoming period. We believe that the Decree represents the beginning of regulating the status of taxpayers and that our country will following the comparative experiences of numerous European countries as the Netherlands, Hungary, Croatian as well as the policy of the European Central Bank outlined measures further expand by other, more comprehensive solutions which will significantly affect the position of taxpayers during the state of emergency.