4 Recent Tax Changes You Must Know If You Reside or Do Business in Serbia

The Tax Procedures and Tax Administration Act has recently undergone some changes, which went into effect on December 20, 2022. It’s important to be aware of these changes, so here are some of the most significant ones to pay attention to.

Paying Taxes Cannot Be Put Off

Firstly, the Act no longer allows taxpayers to delay paying taxes while waiting for a decision on a request for tax payment postponement. This means that the Tax Administration can start enforcement proceedings at any time, even if a request has been made. If this happens, the process of collecting the tax debt may become more expensive, as the taxpayer will have to pay for enforcement and collection costs, regardless of whether their request was granted.

Annual Personal Income Goes Online

For individuals who earn more than three times the average annual salary in Serbia, there’s some good news. They can now only file their annual personal income tax return online through the Serbian Tax Administration’s portal, making the process easier and faster. The Tax Administration encourages people to fill out their tax returns early and upload them to the portal no later than April 1 of the year for which the annual tax is calculated, under a system called “self-taxation.” This applies to personal income tax returns for the year 2022 as of January 1, 2023.

New Crimes

Additionally, the Act now includes two new crimes against the law. It is illegal to sell accounting software, other software, or fiscalization equipment illegally. Those who make, process, sell or give away fiscalization equipment, accounting software, or other software that could help people evade paying taxes can face a five-year prison sentence, and responsible individuals may also be banned from certain activities for one to five years.

Right to Counsel

Another change is the introduction of an ex officio defense counsel. During the pre-investigation phase, if a suspect does not provide a defense attorney, the tax police will choose one for them.

PS. This is done when there is a good reason to think that the defendant broke the Serbian Code of Criminal Procedure by committing a tax crime, which could result in a prison sentence of up to eight years.

For more information on this or any other legal, tax, or business topic, feel free to write to us at [email protected] at any time or call us at phone number +381113281914 every working day from 08:30 to 16:30.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your AK STATT representative, or other competent legal counsel.

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