The Government of the Republic of Serbia issued on 24th December, 2020 the Decree on the Procedure and Manner of Postponing the Payment of Due Taxes and Contributions Aimed at Alleviating the Economic Effects of COVID-19 (hereinafter the Decree).
Prior to the Decree, the Government has already issued the Decree on the Fisacal Benefits and Direct Grants to Private Entities and Financial Aid to Citizens for the Purpose of Easing the Economic Impact of the COVID-19 Health Crises as well as the Conclusion which allowed economic entities to spread the payment of tax on salary and corresponding contributions as well as mandatory advance payments of corporation tax over a period of 24 months.
Under the Decree, the payment of all due liabilities can be delayed and executed in up to 24 equal installments, free of interest, with the first installment becoming due on 10th February, 2021 and each subsequent one on the 10th day of the following month.
It must be noted that the minimum amount of the monthly installment of deferred tax and contributions on salary is RSD 1,000.
In order to make it easier for taxpayers to delay the payment of their tax and contributions due, the Government decided to make the process automatic for all taxpayers who wish to access this preference. In other words, taxpayers are not required to submit any application form to achieve this.
The first installment for the delayed advance payments of corporation tax is due on the 10th day of a month following the month in which the final tax return for corporation tax for 2020 is filed, depending on whether there is any income tax due.
Each monthly payment of income tax that is owed in advance must be at least RSD 2,000.
The above rule for the deferment of advance payments of corporate income tax shall equally apply to an entrepreneur’s delayed advance payments of tax on income from independent activities, with the minimum monthly installment being RSD 1,000.