NEW REGULATION ON PROCEDURE AND MANNER OF POSTPONEMENT ON PAYING OF TAXES AND SOCIAL SECURITY CONTRIBUTIONS IN 24 INSTALMENTS
The Government of the Republic of Serbia adopted the Regulation on procedure and manner of postponement on paying of taxes and social security contributions in order to mitigate economic consequences due to COVID 19 (the "Regulation") The Regulation would come into force on 2 January 2021.
The Regulation closer regulates procedure and manner of payment of due taxes and social security contributions which maturity is postponed according to early adopted Regulation on fiscal benefits and direct grants to the companies in private sector and financial help to citizens in order to mitigate economic consequences caused by COVID 19 disease (the "Regulation on fiscal benefits") and Conclusion of the Republic o of Serbia Government (the "Conclusion"). Taxpayer to which maturity of taxes and social security contributions is postponed according to Regulation on fiscal benefits and the Conclusion can pay its obligations in 24 equal installments without calculated interest and implementation of special procedure i.e. without submitting of the request by the taxpayer.
In below text is presented manner and procedure of postponement of tax based on tax introduced i.e. the taxpayers.
ADVANCE PAYMENT OF THE CORPORATE INCOME TAX
The legal entities – taxpayers of the corporate income tax, which have opted to postpone maturity of taxes and social security contributions, payment of such taxes and social security contributions can be postponed in maximum 24 equal monthly instalments without payment of interest in the period of its postponement. This postponement would be recorded in the Tax Administration tax accounting system without initiation on the separate postponement procedure with the Tax Administration, for the advance payment of the corporate income tax in the amount of advance payment of the corporate income tax which maturity for payment has been postponed in line with the Regulation on fiscal benefits, in maximum amount of unpaid tax obligation calculated in final tax return for corporate income tax for legal entities for 2020 i.e. in the final tax return for corporate income tax which period starts or ends in 2020 for legal entities with different tax year than calendar.
The first installment matures on 10th day of the month which follows the month in which final tax return for 2020 is submitted i.e. for tax period which begins in 2020 and each succeeding installment shall be mature at the same date in the following months.
Monthly installment cannot be below RSD 2,000.
TAX AND SOCIAL SECURITY CONTRIBUTIONS ON SALARIES AND PERSONAL EARNING
Taxpayers of the salary tax and social security contributions, which have opted to postpone maturity of salary and salary compensation taxes and accompanying social security contributions of its employees in line with the Regulation on fiscal benefits and the Conclusion:
- Legal entities
- Lump sum Entrepeneurs
- Entrepeneurs in the field of agruculture
- Entrepeneurs other entities
have the right pay such taxes and social security contributions in amount of unpaid postponed obligation in maximum 24 equal monthly instalments without payment of interest in the period of its postponement.
The first installment will be due for payment on 10th February 2021 and each following installment would be due for payment on the same date in the following months.
Monthly installment cannot be below RSD 1,000.
Legal entities and entrepreneurs who fail the pay the installment in the terms prescribed by the Regulation lose right for postponement of payment of taxes and social security contributions. Tax Administration keep those records as its official duty.
Amount of obligations subject to postponement with the participants of the statutory change whereby the company cease to exist shall be transferred to its legal successor. In case of several legal successors the company which cease to exist is obliged to pay its obligations before deletion from the business registry.
In case that company continues to exist after statutory change, it continues to pay its postponed tax obligations in line with the Regulation.
Unpaid amount of tax obligation which was subject to postponement with the legal entity over which has been initiated bankruptcy procedure, would be filed and paid according to the Law on Bankruptcy.
In case of forced liquidation of the company, tax and social security contributions which were subject to postponement are required to be paid by the company until the procedure of forced liquidation ends.
In case of liquidation of the company, unpaid amount of obligation which was subject to postponement, legal entity is required to settle until the end of liquidation process.
Change of organizational and ownership form or change of legal form of the legal entity and entrepreneur does not have impact on fulfillment of the obligation which was subject to postponement.