Amendments and supplements to tax laws

The Ministry of Finance announced amendments and supplements of the following tax laws: the Law on value added tax, the Law on electronic invoicing, the Law on personal income tax, the Law on compulsory social insurance, the Law on tax procedures and tax administration and the Law on corporate income tax.

In the continuation of the text, we briefly outline the most significant changes and amendments to the aforementioned laws, whose implementation is scheduled to begin from 1^st of January 2025, unless otherwise specified.

The Law on value added tax and The Law on electronic invoicing

• The possibility is being introduced to define the calculation of VAT on the transfer of the entire or part of the assets by decision or contract. The application of this change will apply to decisions or contracts concluded from 1^st of January 2025, while the old rules will apply to all decisions or contracts concluded before that date.
• It is defined that the right to deduct previous tax based on electronic invoices is granted to the taxpayer if the invoice is accepted by the 10th of the following month; otherwise, this right will be carried over to the next period, i.e. to the period when the invoice is accepted. This amendment applies not only to electronic invoices, but also to all other documents. Additionally, it is stipulated that formal deficiencies in the electronic invoice related to the identification of the taxpayer (except for the tax identification number) do not affect the loss of the right to deduct previous tax.
• The obligation for VAT taxpayers to prepare a summary of VAT calculations in the POPDV form is abolished starting 1^st of January 2026.
• A deadline of 5 days is established for submitting the registration declaration if the taxpayer’s total turnover exceeds RSD 8 million in the last 12 months.
• In the event that a VAT taxpayer ceases to exist due to a status change, the legal successor is required to notify the relevant Tax Administration within 15 days from the date of the status change, thereby abolishing the obligation for the taxpayer to submit a request for removal from the VAT records.
• It is stipulated that the request to change the tax period from quarterly to calendar month must be submitted between 15^th of December and 31^st of December of the current year for the following year, with the obligation for the taxpayer to be a monthly taxpayer for the first 12 months after the change being abolished.
• The introduction of a preliminary tax return based on data from the Electronic Invoices System (SEF) is planned to commence on 1^st of January 2026. The preliminary tax return will not be submitted for the period of initiation and cessation of VAT activities, and more information will be available following the amendment of the Regulations, which is expected in the coming months.
• It is stipulated that the electronic recording of VAT is carried out by the 12th day of the calendar month following the tax period for which the VAT is recorded, with the possibility of correction, which if carried out before the start of inspection, will be considered that no offense was committed based on an initial mistake made in the records. This is relevant for tax periods which begin after 31^st of December 2024.
• It is stipulated that the electronic recording of input VAT is carried out no later than the 12th day of the calendar month following the tax period for which the input VAT is recorded, with the balance on the 10th day of the calendar month. The records can be corrected, in such a way that if the correction is made before the start of the inspection, it will be considered that no offense was committed based on the initial mistake in the records. This is relevant for tax periods which begin after 31^st of December 2024.

The Law on personal income tax

• Non-taxable amount of salary has been increased to RSD 28,423.
• The daily allowance for business trips abroad has been increased to EUR 90 per day.
• The validity of the employment incentives for hiring new personnel has been extended until the end of 2025.
• A new category of other income seafarers’ income is being introduced, which will be subject to self-assessment taxation on an annual basis at a rate of 10% and will be included in the calculation of annual tax. Additionally, a tax exemption has been defined for work performed on a vessel for more than 174 days in a calendar year.
• A condition is being introduced for the loss of the tax credit related to annual tax for investments in alternative investment funds, or for the purchase of investment units in such funds, if the taxpayer disposes of shares or stakes in the calendar year in which the investment was made and in the following 3 years. In this case, the taxpayer will be required to notify the relevant Tax Administration of the loss of the right to the tax credit within 30 days of the disposal and will be obligated to pay the obligation along with interest for the previously realized tax credit.

The Law on compulsory social Insurance

• The contribution base for mandatory health insurance for seafarers’ income has been established, which consists of at least twelve times the minimum monthly contribution base.

The Law on tax procedures and tax administration

• The legal representative of the legal entity that ceases to exist due to a status change shall submit a tax return, the deadline for which occurs after the deletion of the legal entity has been executed.
• The tax obligation also ceases upon the occurrence of permanent uncollectibility of the tax, thereby specifying the end of tax obligations in cases where collection is not possible, which occurs upon the fulfillment of the following conditions:
  • the taxpayer has been removed from the register or recorded in the register of deceased individuals:
  • there is no individual responsible for settling the unpaid tax obligation of that taxpayer;
  • the collection of tax is not secured by a lien or mortgage.
• A new Registry of Individuals is being introduced, i.e. an electronic database of individuals, effective from 1^st of January 2026, aimed at enabling the reliable and efficient enforcement of tax regulations and securing financial resources for the Republic of Serbia.
• The option to submit tax documents via the Tax Administration portal or by email is being introduced, whereby it is deemed that the document has been delivered 15 days after sending if the taxpayer does not confirm receipt.
• The provision allowing tax returns to be submitted directly or by mail until the transition to exclusively electronic submission of tax returns is abolished.
• It has been clarified that tax payments are generally to be made in dinars (RSD). Additionally, the option for non-residents to pay taxes in foreign currency to the foreign currency account of the Tax Administration is defined, effective from 1^st of January 2026.
• A new category of dubious and disputed claims has been defined, which includes unpaid tax obligations in the following cases: a company undergoing bankruptcy proceedings, a company that has been removed from the prescribed register during compulsory liquidation, a deceased individual, a legally incapacitated individual with claims exceeding the value of their assets, and an absent individual with claims exceeding the value of their assets.
• The monetary fines for various tax offenses have been increased Additionally, monetary penalties have been established for individuals who fail to pay the tax determined in the tax return or in the decision of the Tax Administration, ranging from RSD 5,000 to RSD 50,000. At the same time, individuals who do not submit their tax return on time will be fined RSD 10,000.
• Off-balance tax accounting will be abolished on 31^st of December 2024, and the Tax Administration will transfer outstanding obligations to standard tax accounting as dubious and disputed claims by that date.

The Law on corporate income tax

• The liquidator / insolvency administrator of the taxpayer is required to submit the tax return and tax balance within 60 days of registration with the Serbian Business Registry Agency (APR): initiation of liquidation, completion of liquidation, commencement of bankruptcy proceedings, or the start of the implementation of the reorganization plan. In the event that the liquidation / bankruptcy proceedings continue into the following calendar year from the initiation of the liquidation / bankruptcy process, the liquidator / insolvency administrator is responsible for submitting the tax return and tax balance; however, in the case of reorganization, the taxpayer must submit the tax return and tax balance independently.
• The insolvency administrator is required to submit the tax return and tax balance within 10 days of registration with the APR: the final ruling on bankruptcy, the final ruling on the conclusion of bankruptcy proceedings through bankruptcy, or the suspension of bankruptcy proceedings due to the sale of the debtor’s assets.