The Decree on the procedure and manner of deferral of payment of due taxes and contributions in order to mitigate the economic consequences caused by the disease COVID-19. ("Official Gazette of RS" No. 156/20) prescribes the manner of deferral of payment of taxes and contributions to the economic entities that have decided to defer the maturity for payment of tax liabilities.

The Tax Administration has published on website the information that, according to the Decree, it is implementing appropriate activities and actions in order to implement the deferral of the payment of due taxes and contributions to economic entities:

  • Lump-sum entrepreneurs for 4 monthly advance payments of taxes and contributions on income from self-employment.
  • Business entities for taxes and contributions on salaries and wage compensations, as well as for taxes and contributions on personal earnings of entrepreneurs and entrepreneurs-farmers who have decided to postpone maturity by submitting the PPP-PD  tax return with the stated date of payment 4 January 2021 and 5 January 2021.
  • The deferral procedure will cover the tax debt on account 4848 and on the prescribed tax and contribution accounts for lump-sum taxpayers.
  • If the taxpayer has partially settled the tax liability, the deferred payment will cover the remaining amount of the tax debt.
  • If the taxpayer has fully settled the tax liability and doesn’t have a reported tax debt, there is no amount to defer payment of the due tax and contributions.
  • Lump-sum entrepreneurs are deferred to pay taxes in 24 equal monthly installments without paying interest, for the duration of the deferral of payment, so that the first installment is due on February 10, 2021, and each subsequent installment is due on the same date of the following months.
  • The total amount of deferred taxes and contributions on salaries and wage compensations is divided into 24 equal monthly installments installments without paying interest, but so that the installment cannot be less than 1,000 RSD. The first installment is due for payment on February 10, 2021, and the next installments are due on every 10th of the following months.
  • The total amount of advance payments for corporate income tax is divided into 24 equal monthly installments, but so that the installment cannot be less than 2,000 RSD. The first installment is due for payment on the 10th of the month following the month in which the final corporate income tax return for 2020 was submitted, i.e. for the tax period beginning in 2020 for taxpayers whose business year is different from the calendar year, and the next installments are due on the 10th of the following months. Taxpayers whose business year is different from the calendar year and who have submitted the final tax return by January 31, 2021 for the period ended in 2020, the first installment is due on February 10, 2021, and the next installments are due on the same day of the following months.
  • Deferral of payment in the amount of advance payments of taxes and contributions on income from self-employment is done to economic entities that submit the final tax return of income tax from self-employment for 2020 within the prescribed period. The monthly installment cannot be less than 1,000 RSD, and the first installment is due on the 10th of the month following the month in which the final tax return was filed, and each subsequent installment is due on the same date of the following months.
  • The taxpayer may also settle the entire obligation or a part of the obligation higher than the due before the deadline set for deferred payment of obligations.
  • Taxpayers who do not submit a final tax return for 2020, i.e. for the tax period beginning in 2020 within the prescribed period, are not entitled to defer payment of corporate income tax.
  • An economic entity that doesn’t settle the installment within the prescribed deadlines during the period of deferred payment, loses the right to defer payment of obligations based on taxes and contributions that are the subject of deferral.

In the following days, and no later than January 15 of the current year, all economic entities that meet the conditions for deferral the due taxes and contributions will be notified in the tax box on the portal of the Tax Administration.

The notification contains information on:

  • the total amount of due taxes and contributions on account 4848,
  • prescribed tax and contribution accounts for lump-sum taxpayers,
  • number of installments,
  • amount of the installment,
  • installment due date,
  • payment authorization number (BOP) i
  • payment account.

You can download example of the Tax Administration (Ministry of Finance of The Republic of Serbia) on this link.