New Rules in Tax Procedure and Administration

Amendments to the Law on Tax Procedure and Tax Administration

Initial considerations

In order to harmonize with the Law on Fiscalization (“Official Gazette of RS”, No. 153/2020), the Government of the Republic of Serbia adopted the Draft Law on Amendments to the Law on Tax Procedure and Tax Administration (the “Draft“).

The constitutional basis for the adoption of this Draft is contained in Art. 97. touch. 6 and 15 of the Constitution of the Republic of Serbia, according to which the Republic of Serbia, among other things, regulates the tax system and provides financing for the exercise of the rights and duties of the Republic of Serbia, determined by the Constitution and law.

Changes

First, it is prescribed that the tax act is a tax decision, conclusion, order for tax control, invitation for tax control, minutes on tax control and other act which initiates, supplements, changes or completes an action in the tax procedure.

Also, it is prescribed to set a deadline of up to 30 days for compiling additional minutes, bearing in mind that the valid deadline of five days is short for compiling additional minutes.

A new Article 41b is added for the purpose of prescribing the legal basis for filing a tax return on calculated contributions for compulsory social insurance for founders, ie members of a company, which is submitted ex officio by the Tax Administration instead of the taxpayer, ie tax payer, in case the taxpayer that is, the taxpayer fails to submit it within the period prescribed by the law governing contributions for compulsory social insurance.

The provisions of Article 74 of the Law on Tax Procedure and Tax Administration (the „Law“) are supplemented by enabling the payment of the remaining due interest and the replacement of the means of securing collection in the procedure of postponing the payment of the due tax.

Namely, a taxpayer whose agreement has been annulled, ie a decision on deferral of payment of due tax has been revoked, and who subsequently settles his tax liabilities in an amount equal to or greater than the sum of the total amount of principal tax debt that was subject to deferral and the total principal tax debt. on other grounds on the day of payment, may within 30 days from the date of payment, submit a request for deferment of payment of the remaining interest (without the possibility of writing off 50% interest) relating to settled obligations, in accordance with the provisions of the Law.

Also, at the request of the taxpayer who has been granted a deferral of payment of the due tax, the Tax Administration may replace the collateral in that procedure, if the new collateral is of the same type and greater value than the existing collateral and if it meets the prescribed conditions.

After obtaining proof that he has provided a new collateral, in the amount of tax due which is subject to deferred payment, the Tax Administration in the prescribed procedure allows deleting the existing collateral from the prescribed register, or returns the given collateral to the taxpayer.

In accordance with the above, transitional provisions are prescribed which stipulate that the provisions of the Law relating to the possibility of deferring the payment of interest shall also apply to the tax due which was subject to the procedure of deferral of tax due which was annulled or repealed before the entry into force of the Law. , ie that the provisions of the Law relating to the possibility of replacing collateral in the procedure of deferred payment of tax due, also apply to collateral in the procedure of deferral of payment of tax due which was approved before the entry into force of the Law.

Article 114e of the Law is amended in the sense that, among other things, the right to settle due obligations on the basis of contributions for obligatory social insurance through re-registration does not become statute-barred.

Namely, the provision of Article 114a of the Law prescribes the statute of limitations of the taxpayer’s right to refund, tax credit, refund and refund, as well as settling due obligations by transferring taxes and refunding ancillary taxes, and the specific provision specifies the statute of limitations.

The goal of making changes

In addition to harmonization with the Law on Fiscalization, the amendments to the Law seek to specify the provisions that needed to be specified, in order to implement the Law with as little interpretation as possible and thus make the tax procedure faster and more efficient.