Decision on the Abolition of the State of Emergency due to COVID-19

On May 6, 2020, the National Assembly of the Republic of Serbia passed the Decision on the abolition of the state of emergency due to COVID-19 (hereinafter: the Decision), which was declared on March 15, 2020. The decision was published in the Official Gazette of the Republic of Serbia No. 65/2020 of May 6, 2020.

At the same time, the Law on the Validity of Decrees Adopted by the Government during the State of Emergency was adopted and confirmed by the National Assembly, which prescribes which decrees cease and which continue to be valid after the state of emergency. The Law on the Validity of Decrees entered into force on the day of its publication, namely 05/06/2020 years.

The Law on the Validity of Regulations stipulates, inter alia, that the Regulation on Tax Measures during the State of Emergency in order to mitigate the economic consequences caused by the COVID-19 disease caused by the SARS-CoV-2 virus ceases to be valid (“Official Gazette of RS”, No. 38 / 2020 – hereinafter: the Decree on Tax Measures).

In addition, the said law stipulates that, among other things, the Decree on the application of deadlines in administrative proceedings during a state of emergency continues to apply, which also affects the deadlines in tax proceedings, so we will briefly review the application of this decree after the termination of extraordinary conditions.

With the entry into force of the Law on the validity of regulations, namely On May 6, 2020, these measures will cease to be valid.

This means that the temporarily suspended provisions of Article 74 para. 7 – 9 Law on tax procedure and administration (hereinafter: LTPA) and that the measures prescribed by the above provisions of  ZPPA will be taken against taxpayers who are late in settling the installment of tax debt in accordance with the agreement or decision on postponement, namely settlement of current liabilities.

In addition, starting from May 6, 2020, taxpayers – legal entities, entrepreneurs, farmers and individuals on the amount of more or less paid taxes and ancillary taxes, except interest, interest is calculated in accordance with LTPA, namely at a rate equal to the annual reference rate of the National Bank of Serbia, increased by ten percentage points, by applying a simple interest account of one hundred.

Namely, the Decree on Tax Measures stipulated that taxpayers – legal entities, entrepreneurs, farmers and natural persons during the state of emergency on the amount of more or less paid taxes and ancillary benefits, except interest, are calculated and paid interest at a rate equal to the annual reference rate of the National Bank of Serbia.

Having in mind the above, on the amount of more or less paid taxes and ancillary taxes, except interest, interest is calculated at the following rates:

  • from 15.03. to 5.05.2020. year – at a rate equal to the reference interest rate of the National Bank of Serbia, as follows:
  • from 15.03. to 8.04. – 1.75%, and
  • from 9.04. to 5.05. – 1.50%;
  • from 6.05.2020. year – at a rate equal to the reference interest rate of the National Bank of Serbia, increased by ten percentage points (currently 11.50%).

 

Termination of validity of special tax measures introduced during the state of emergency

Categories of taxpayers  

On the day of lifting the state of emergency – May 6, 2020.

 

Taxpayers in the regime of deferred tax payment

The ban on annulling the agreement, namely revoking the decision on postponing the payment of the due tax ex officio, ceases.
The ban on forced collection during the state of emergency of due obligations in the deferral regime ceases.
 

It starts with the calculation of interest on the amount of deferred tax liability.

VAT payers The right to VAT exemption with the right to deduct the previous tax for the delivery of protective equipment (masks) that the Republic Health Insurance Fund (RHIF) makes to legal entities engaged in the distribution of protective equipment (masks) ceases.
The right to VAT exemption ceases with the right to deduct the previous tax for the sale of goods or services that the taxpayer performs to the Ministry of Health, the Republic Health Insurance Fund or a health institution in public ownership without VAT compensation.
Late / with positive interest taxpayers The application of the temporary calculation of interest at a rate equal to the annual reference rate of the National Bank of Serbia on the amount of due and unpaid tax liabilities, as well as on the amount of overpaid tax, shall cease.

From May 6, 2020, the interest on the amount of due and unpaid tax is determined by applying a rate of 11.50% (instead of 1.50%).

 

Deadlines in tax proceedings after the termination of the state of emergency

Decree on the application of deadlines in administrative proceedings during the state of emergency, which was passed on March 24, and amended on March 27, 2020. year, it is prescribed in what way the state of emergency affects the deadlines in administrative proceedings.

The Decree on Deadlines stipulates that the delivery of documents in administrative proceedings and notification actions, from which non-renewable deadlines begin to run, and which were performed during the state of emergency, shall be considered, in terms of application of prescribed deadlines, completed after 15 days since the cessation of the state of emergency.

Therefore, the delivery of letters and notifications from which the deadlines for filing legal remedies against first instance decisions and conclusions of the competent tax and customs authorities begin to run, are considered completed on May 21, 2020 and from that day the deadline for filing legal remedies begins to run.

If the deadline for undertaking a certain administrative action or for ending the administrative procedure or deciding on the declared legal remedies has expired during the state of emergency, according to the Decree on Deadlines, that deadline will be considered to expire on June 5, 2020.

In addition to the above, the Decree on Deadlines stipulates that deadlines that expire during a state of emergency, and refer to undertaking administrative actions, ending administrative proceedings and deciding on declared legal remedies, will be considered expired when 30 days from the end of the state of emergency expire.

 

Deadlines that begin to run on the day the state of emergency is lifted

On the day the state of emergency is lifted, the deadlines shown in the table begin to run:

Activity Time limit Date of Expiry
     
Submission of the regular annual financial report for 2019 90 days from the date of termination of the state of emergency August 3, 2020
Submission of the consolidated annual financial report for 2019 120 days from the date of termination of the state of emergency September 2, 2020
Submission of extraordinary financial reports 30 days from the date of termination of the state of emergency if the regular deadline (60 days from the day on which the extraordinary financial statements are prepared) expires during the state of emergency June 4, 2020
 

Submission of regular annual financial statements for companies with a business year that is different from the calendar year

 

90 days from the date of termination of the state of emergency if the regular deadline (6 months from the date of preparation of financial statements) expires during the state of emergency

 

August 3, 2020

 

Submission of annual reports, namely annual financial reports with revival reports of all taxpayers is reporting regulated by the Law on Capital Market, namely the Law on Investment of Funds or the Law on Open Investments of Funds with Public Offering

60 days from the date of termination of the state of emergency July 6, 2020
Filing tax returns for income tax for 2019 90 days from the date of termination of the state of emergency August 3, 2020
Submission of documentation in paper form to the NBS, on the basis of which the forms on reporting on credit operations of residents with foreign countries are certified 10 days from the end of the state of emergency May 15, 2020
Filing a tax return for income tax for a tax period other than a calendar year 90 days from the day of termination of the state of emergency if the regular deadline (180 days from the expiration of the period for which the tax is determined) expires during the state of emergency August 3, 2020
Holding a regular session of the assembly of the joint stock company 90 days from the date of termination of the state of emergency August 3, 2020
Filing a lawsuit with the Administrative Court against the final tax administrative act passed during the state of emergency 30 days from the date of termination of the state of emergency June 4, 2020

 

Opening of the counter of the business register agency

From Monday, May 11, 2020, the Business Registers Agency will continue working with clients through counters at the Agency’s headquarters in Belgrade (Brankova 25) and organizational units, from 9 am to 3 pm.

2020-05-26T12:18:57+00:00 May 12th, 2020|

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