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  • Tax Highlights - January 2020
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Tax Highlights - January 2020

31 January 2020

Regulation on the criteria for determining activities that affect the environment according to the degree of negative impact on the environment resulting from carrying out the activity, the amounts of fees, the conditions for its reduction, and the criteria that are relevant for the environmental impact of individuals

 

Regulation on the criteria for determining activities that affect the environment according to the degree of negative impact on the environment resulting from carrying out the activity, the amounts of fees, the conditions for its reduction and the criteria that are relevant for the environmental impact of individuals, came into force on 7 December 2019 (Official Gazette of the RS, No. 86/19, hereinafter referred to as “the Regulation”). The Regulation was passed on the basis of Article 134, paragraph 2 of The Fees for the use of public goods Law (Official Gazette of RS, Nos. 95/18 and 49/19, hereinafter referred to as “the Law”). The Regulation defines more closely the activities of legal entities and entrepreneurs that have a negative impact on the environment.

The taxpayer is a legal entity and entrepreneur who pollutes the environment based on the degree of negative impact on the environment.

The amount of compensation according to the degree of negative impact on the environment and activity codes for legal entities and entrepreneurs is set out in the Regulation and in the appendix which forms the integral part of the Regulation. The obligation to pay the fee will be determined by the decision of the local tax administration on the basis of the submitted application. Application should be submitted by the taxpayer until 31 July each year for the current year. The determined obligation will be paid in equal monthly installments, within 15 days for the previous month.

Fee may not exceed 0.4% of the revenue from activities that affect the environment based on the annual income of taxpayers from the financial statements presented for the previous year.

Legal entities are classified in the Regulation according to the degree of pollution, and within it by size in line with the Accounting Law. For each degree of pollution, the amount of annual compensation is determined by size. Review of the annual amount of compensation according to the above criteria is given in the table below.

 

Classification of taxpayers

The negative impact on the environment

Large - Fee in RSD

Medium - Fee in RSD

Small – Fee in RSD

Large legal entities

2.000.000,00

1.000.000,00

500.000,00

Medium legal entities

500.000,00

250.000,00

125.000,00

Small legal entities

200.000,00

100.000,00

50.000,00

Micro-legal entities and entrepreneurs

20.000,00

10.000,00

5.000,00

 

Failing to submit application and non-payment of the fee can lead to misdemeanor offence for the legal entity, authorized representative of the legal entity or the entrepreneur.

Fines for legal entities are from cca. EUR 4.300 to EUR 17.000 for legal entities and EUR 100 to EUR 850 for the authorized representative of the legal entity.

Fines for the entrepreneurs are from cca. EUR 100 to EUR 4.300.