In accordance with the Law on Property Taxes, for property for which the taxpayers had filed a tax return, taxpayers who keep business books are obliged to submit a tax return with a determined tax for the year by March 31 of each year.
Taxpayers who keep business books are obliged to submit a tax return for 2021 by March 31.
What is a property tax?
Property tax is a direct, periodic, analytical and, in principle, object tax.
The tax liability in the case of this tax occurs from the very fact that a natural person or a legal entity has a real right to immobility or certain movables.
The tax base is the market value of some immobility, or capital on December 31 of the year preceding the year for which the property tax is determined and paid. In the case of capital, the book value is taken as the basis, determined in accordance with the relevant regulations.
Tax rates and tax bases are determined by local government units.
Who are the taxpayers who keep business books?
– Legal entities (micro, small, medium and large enterprises)
– Non-resident legal entities – for immobility for which the tax liability is fulfilled by the organizational part of that person who performs activities in Serbia
– Entrepreneurs who keep business books – for assets that are recorded in the business books
– Investment funds that do not have the status of a legal entity and which are entered in the Serbian register and which keep the book
– other entities who keep business books, except for entrepreneurs who keep business books for assets that are not recorded in their business books
Decisions made by local governments
– property tax rates
– determine the zones and the most equipped zones
– determine the average price per square meter of the corresponding immobility by zones
– determine the coefficients for immobility in the zones
– the possibility to make a decision to classify undeveloped construction land that is used exclusively for growing plants and planting material into agricultural or forest land
What is the subject of taxation?
The subject of taxation is the value of immobility located on the territory of the Republic of Serbia.
Immobility is land (construction, agricultural, forest and other) as well as residential, business and other buildings, apartments, business premises, garages, etc.
When does a tax liability arise and end?
The tax liability for property tax occurs on the day of acquisition of the right, the day of the beginning of use, the day of training or the day of issuing the use permit.
The tax liability ceases on the day on which the taxpayer’s right, state or use of immobility ceases (eg sale), on the day when the immobility ceases to exist (demolition), on the day another person acquires the right to a certain immobility and on the day of application of the law. or the use of immovable property ceased to be subject to taxation.
The right to tax exemptions
The following immobilities are exempt from property tax:
– Immobility in public ownership for which taxpayers are direct and indirect users of budget funds
– Immobility of diplomatic and consular missions
– Immobility owned by churches and religious communities
– Cultural monuments or historical monuments
– Agricultural and forest land that is put back into use (5 years, counting from the beginning of putting into use, and provided that they are not given to another person for income)
– Publicly owned roads
– Publicly owned railways
– Built shores for mooring vessels
– For land – area under the building on which the tax is paid (with some exceptions)
– Land area under the building
– Part of the land area under the building when the taxpayer has no obligation to pay taxes for a part of the building, in proportion to the share of the usable area of the part of the building on which property tax is paid in the total usable area of that building
– Water land and water facilities
– Facilities used for performing communal activities
– Immobility in connection with which the Republic of Serbia has regulated the tax exemption by an international agreement
– Immobility owned by a private partner in terms of regulations on public – private partnership, under certain conditions
– Facilities for which the Red Cross is obligated, and which use these facilities to perform the activities of that organization
– Immobility for which the total base for all immobility of the taxpayer on the territory of the local government unit does not exceed the amount of RSD 400,000 (provided that they are not given to another person for the purpose of generating income)
– Immovable property which the taxpayer assigns for use to a person expelled after 1 August 1995 without compensation (also with the condition that the non-exiled person and members of his household do not earn income).
– Immobility intended for resale that is not used
Filing a tax return
The tax return for property tax is submitted to the competent body of local government.
The tax return is submitted on the PPI-1 form, with the forms:
– APPENDIX-1 – contains tax data for each undeveloped land, ie for each land with all facilities of the same taxpayer that are located on it, or for a special part of the facility
– SUB-ANNEX TO APPENDIX 1 – contains data on determining the value that is included in the tax base for each land and for each facility
– APPENDIX-2 – contains data on immobility that is exempt from paying taxes in full