Ministry of Finance
011-00-00063/2022-04
29 June 2022

Regarding the request for an opinion in connection with the application of regulations governing the tax procedure and tax administration, regarding the statute of limitations of the tax liability, from the point of view of the jurisdiction of the Sector for the Fiscal System, we point out the following:

The provisions of Article 2a of the Law on Tax Procedure and Tax Administration ("Official Gazette of the RS", No. 80/02 ... 96/21 - hereinafter: ZPPPA) stipulate that this law also applies to the original public revenues of local self-government units that units determine, charge and control in the public law relationship, as well as secondary tax payments on those grounds, including the original public revenues that local self-government units determine, charge and control in the procedures in which they pass tax acts, tax administrative acts, as well as other acts in the administrative procedure.

When determining, collecting, and controlling public revenues and secondary tax payments from paragraph 1 of this article, issuing a misdemeanor order, as well as when submitting a request to initiate misdemeanor proceedings for tax offenses to the competent misdemeanor court, the competent authority of the local self-government unit has the rights and obligations ZPPPA has the Tax Administration, except for the rights and obligations related to:

  1. identification and registration of taxpayers;
  2. assessment of the tax base using the parification method and the cross-assessment method;
  3. detection of tax crimes;
  4. deleted;
  5. deleted;
  6. deleted;
  7. other rights and obligations of the Tax Administration contained in the provisions of Article 160, paragraph 1, point. 9) and 12) and Art. 161, 164 and 167-171. ZPPPA.

The provisions of Article 23 of the ZPPPA stipulate that the tax liability ends:

  1. tax collection;
  2. the statute of limitations of taxes;
  3. tax write-off;
  4. tax write-off;

The unpaid tax liability of the taxpayer - a legal entity against whom bankruptcy proceedings have been concluded by a final decision, ends, unless a lien has been entered in public books or registers for the purpose of its collection, i.e. if, in addition to the taxpayer, another person is responsible for its fulfillment.

In the case referred to in paragraph 1. 2)-4) and paragraph 2 of this article, the Tax Administration issues a decision on termination of tax liability.

The provisions of Article 114 of the ZPPPA prescribe that the right of the Tax Administration to determine and collect taxes and ancillary tax benefits expires in five years from the date when the statute of limitations began to run.

The statute of limitations for the right to determine tax and ancillary tax benefits begins on the first day of the following year from the year in which the tax or ancillary tax benefit should have been determined.

The statute of limitations for the right to collect taxes and ancillary tax benefits begins on the first day of the following year from the year in which the tax debtor's obligation is due for payment.

The provisions of Article 114d of the ZPPPA prescribe that the statute of limitations is interrupted by any action taken by the Tax Administration against the tax debtor in order to determine and collect taxes and secondary tax payments, i.e. by the action taken by the taxpayer in order to exercise the right to a refund, tax credit, refund and refund, as well as settlement of due obligations through transfer and refund of secondary tax duties.

After the interruption, the statute of limitations begins to run again, and the time that passed before the interruption is not counted in the statute of limitations.

The provisions of Article 114ž of the ZPPPA prescribe that the right to determination, collection, refund, tax credit, refund, refund, as well as the settlement of due obligations through tax transfer, always expires within ten years from the end of the year in which the tax was to be determined or collected. that is, in which the overpayment was made, unless otherwise prescribed by this law.

After the expiration of the period referred to in paragraph 1 of this article, the tax administration, ex officio, issues a decision on the termination of the tax liability, i.e. on the termination of the right to a refund, tax credit, rebate, refund, as well as to the settlement of due obligations by transferring taxes, due to statute of limitations.

In accordance with the above, the right of the competent tax authority to determine and collect taxes expires five years from the date when the statute of limitations began to run.

If the competent tax authority takes actions against the tax debtor with the aim of determining and collecting the tax liability, the limitation period is interrupted by any action taken by the competent tax authority against the taxpayer for that purpose, and after the interruption the limitation period begins to run again, and the time that passed before the interruption does not is counted in the statute of limitations.

In this regard, the competent tax authority, after the expiration of ten years from the end of the year in which the tax should have been determined or collected, ex officio, issues a decision on the termination of the tax liability due to statute of limitations.

If the competent tax authority acts on the taxpayer's request, it can decide on the same regardless of the basis on which the statute of limitations has occurred, that is, determine that the conditions for the statute of limitations to apply have not been met on any basis.