Entities not covered by the List of Beneficiaries of Public Funds established in accordance with the Rulebook on the List of Beneficiaries of Public Funds (Official Gazette of the RS 93/19) shall have the right to use fiscal benefits and direct benefits, as follows:

  • resident legal entities within the meaning of the law governing corporate taxation,
  • resident entrepreneurs (entrepreneurs, lump sum entrepreneurs, entrepreneurs farmers and entrepreneurs of other persons, within the meaning of the law governing personal income tax), and
  • branches and representations of foreign legal entities.

Businesses entities may use the measures prescribed by the Decree under condition that starting from 15 March 2020 to 10 April 2020 did not reduce the number of employees by more than 10% excluding employees with whom a fixed-term employment contract was concluded before 15 March 2020 for the period ending on 15 March 2020 to 10 April 2020.

Entrepreneurs who have registered temporary cessation of business activity from 15 March 2020 also have the right to use fiscal benefits as well as business entities established and registered with the competent authority or organization as of 14 March 2020. So, business entities that were established and registered on 15 March 2020 and later, do not have possibility to use to the measures under the Decree.

Private sector entities may use the fiscal benefits and direct benefits under this regulation if they were established and registered with the competent authority or organization before 15 March 2020, or if they became VAT taxpayers in the mentioned period.

Fiscal benefits include the deferral of maturity for payment of certain public revenues due for payment from 1 April to 30 June 2020, and exceptionally until 31 July 2020 for taxes and compulsory social security contributions payable. on salaries for June 2020 paid in accordance with the regulations governing labor, and the postponement of their payment, as follows:

- personal income tax on salaries and wages (hereinafter: tax) and contributions for compulsory social security (hereinafter: contributions) on wages and salaries, as well as on taxes and contributions on the earnings of entrepreneurs and entrepreneurs farmers, for the months of March, April and May 2020, or at the option of the taxpayer for the months of April, May and June 2020 for those taxpayers who are paid wages and salaries, as well as the personal earnings of the farmer entrepreneurs in March, or fully implemented by the date of entry into force of the Decree. The maturity for the payment of the aforementioned liabilities is deferred until 4 January 2021.

- advance payment of self-employment income tax for March, April and May 2020 for entrepreneurs and farmers entrepreneurs who have opted for personal wages and entrepreneurs of other persons. The maturity for the payment of these obligations is deferred until the submission of the final tax return for determining taxes and contributions for compulsory social security by self-taxation on self-employment income for 2020.

- advance payment of taxes and contributions on self-employment income for March, April and May 2020 for entrepreneurs and entrepreneurs entrepreneurs who have not opted for the payment of personal wages. The maturity for the payment of these obligations is deferred until the submission of the final tax return for determining taxes and contributions for compulsory social security by self-taxation on self-employment income for 2020.

- advance payment of taxes and contributions to self-employment income for lump sum entrepreneurs for March, April and May 2020. The maturity for the payment of the aforementioned liabilities is deferred until 4 January 2021.

- advance payment of corporate tax for March, April, and May 2020, that is, for taxpayers with a business year other than the calendar year, advance payment of corporate income tax due on 15 April, 15 May and 15 June 2020. The maturity for the payment of these liabilities is deferred until the submission of the final corporate tax return for 2020, that is, for taxpayers with a business year other than the calendar year for the tax period beginning or ending in 2020, for advance tax payments on profit due on 15 April 2020,  15 May 2020 and 15 June 2020 until the submission of the final corporate income tax return for the relevant tax period.

Bussines entities have the right to defer payment of tax due and contributions whose maturity is deferred under the Decree to a maximum of 24 equal monthly installments without interest. The procedure and manner of deferring the payment of the tax due and contributions for economic entities will be more closely regulated by a by-law in the coming period.

In order to take advantage of the benefits provided for in the Regulation, business entities must file an individual tax return on accrued taxes and contributions (PPP-PD Form, hereinafter: the tax return) with a marked payment date 4 January 2021 (under ordinal number 1.4 of the tax return). By filing a tax return with marked payment date 4 January 2021. The company opts for the use of the benefits prescribed by the Decree (both fiscal benefits and direct benefits).

Business entities that choose to use the fiscal benefits and direct benefits required by the Decree shall file a tax return no later than:

- on April 30, 2020 for the accounting period March 2020, that is, for the accounting period April 2020, if payment of wages and salaries, as well as personal earnings of entrepreneurs and entrepreneurs of farmers for March were partially or fully made by 10 April 2020..

- May 31, 2020 for the accounting period April 2020, that is, for the accounting period May 2020, if payment of wages and salaries, as well as personal earnings of entrepreneurs and entrepreneurs of farmers for March were partially or fully made by 10 April 2020.

- June 30, 2020 for the accounting period May 2020, that is, for the accounting period June 2020, if payment of wages and salaries, as well as personal earnings of entrepreneurs and entrepreneurs of farmers for March was partially or fully made by 10 April 2020.

Businesses entities that have no employees and therefore do not file a tax return, and are not entrepreneurs and entrepreneurial farmers who have opted for personal wages, are entitled to use fiscal benefits and direct benefits in accordance with the Decree.

Entrepreneur, lump-sum entrepreneur, entrepreneur farmer, entrepreneur other person, legal entities classified as micro, small and medium in accordance with the law governing accounting, can claim the right to direct payments, ie payment of grants from the budget, and that:

- in May 2020, the amount obtained as a product of the number of full-time employees for whom earnings and wages were filed with the tax return for the accounting period March 2020 and the amount of basic minimum net earnings for March 2020;

- in June 2020, in the amount received as a product of the number of full-time employees whose wages and salaries he filed with the tax return for the accounting period April 2020 and the amount of basic minimum net earnings for March 2020;

- in July 2020, in the amount received as a product of the number of full-time employees whose wages and salaries he submitted tax returns for the May 2020 accounting period and the amount of basic minimum net earnings for March 2020.

The number of employees of entrepreneurs, lump-sum entrepreneurs, farmer entrepreneurs and entrepreneurs of another person is increased by 1 (one), unless the entrepreneur, lump-sum entrepreneur, farmer entrepreneur or other person has the status of employee or pension beneficiary at the same time. Therefore, entrepreneurs are entitled to direct benefits, both for employed workers and for themselves, if they do not have the status of an employee or beneficiary of a pension.

The number of employees is also increased by the number of part-time employees, by adding for each part-time employee the total number of employees in proportion to the agreed percentage of full-time employee engagement, which is determined based on tax return information for the relevant accounting period.

A legal entity that is classified as a large legal entity in accordance with the law governing accounting shall be entitled to a grant in the amount received as a product of 50% of the basic minimum net earnings for March 2020 and shall have the following sums:

- full-time employees for whom a decision on termination of work was issued from 15.03.2020. in accordance with Article 116 of the Law on Labor ("Official Gazette of RS" No. 24/05, ... 95/18 - hereinafter: the Labor Law), and for which the employer - a large legal entity filed a tax return i

- full-time employees who have been issued a decision to terminate their work beginning on 15 March 2020 in accordance with Article 117 of the Labor Law, on the basis of the decision of the competent state body issued in connection with the disease COVID-19 and for which the employer - a large legal entity filed a tax return.

The number of employees is also increased by the number of part-time employees for whom a decision was made to terminate work, by increasing the total number of employees for each part-time employee in proportion to the agreed percentage of part-time employee engagement relative to full-time work. time, which is determined on the basis of data from the tax return for the respective accounting period.

The large legal entity submits to the organizational unit of the Tax Administration competent for the territory according to the seat of the legal entity, ie the Center for Large Taxpayers, no later than the 20th of the month, in paper form, a list of persons for whom it is entitled to direct benefits, which is made in the following month (payment is made in May for March, June for April, or July for May).

The Official Gazette No. 56/2020 promulgates the Rulebook on the Contents of the Form, which provides information on persons for whom a large legal entity is entitled to a grant, which prescribes Form SL.

The right to fiscal benefits and direct benefits are not exercised by large legal entities – banks, insurance companies and companies for reinsurance, voluntary pension fund management companies, financial leasing providers, as well as payment institutions and electronic money institutions.

The classification of economic entities for the purposes of applying this Regulation is based on the financial statements for 2018, and the entities established during 2019 and 2020 are considered to be small legal entities.

The payment of direct payments to business entities that accept direct payments is made from a special purpose account opened for this purpose with the Ministry of Finance - Treasury Department. For the payment of direct benefits, a special purpose account is opened to the business entity - payment of direct benefits - COVID-19 (hereinafter referred to as the "special purpose account") with the bank, which, at the moment of entry into force of the Decree (10 April 2020), maintains the current account of that economic entity.

Business entities that have current accounts opened with several banks at the moment of entry into force of the Decree are obliged to submit at the latest on April 25, 2020, on the Tax Administration portal, information on the name of the bank with which the special account will be opened. Business entities which, at the moment of entry into force of the Decree, have current accounts with one bank, are not required to submit information on the name of the bank, that is, they will be open a special account with that bank.

An economic entity loses the right to use fiscal benefits and direct benefits if, in the period 15 March 2020 until the expiry of the period of 3 months from the last payment of direct benefits, reduce the number of employees by more than 10%, excluding employees with whom a fixed-term employment contract was concluded before 15 March 2020 for the period ending on 15 March 2020 until the expiration of 3 months from the last payment of direct benefits.

Business entites who have opted for the use of fiscal benefits and direct budgetary contributions may not pay dividends until the end of 2020, unless the payment of dividends is made in shares or shares of the dividend payer. In the case of payment of dividends, economic operators lose the right to use the fiscal benefits and direct benefits provided for in this Decree.

The fulfillment of the conditions for loss of the right to use the fiscal benefits and direct benefits prescribed by the Decree shall be checked every last day of the month, starting from April 2020, ending October 31, 2020.

Business entities that lose the right to use the fiscal benefits and direct benefits prescribed by the Regulation are obliged to:

- pay all liabilities for which they have been granted a deferred payment together with the interest accrued at the rate at which interest is calculated for the delay in payment of tax liabilities, calculated from the day when the said obligations are due for payment in accordance with the laws governing payment of the corresponding obligation, not later than five days from the date of termination of the right to use fiscal benefits and direct benefits; i

- repay direct payments with interest calculated at the rate at which interest is calculated for late payment of tax liabilities, starting from the day on which individual direct payments were paid to them, not later than five days from the day of termination of the right to use fiscal benefits and direct benefits.

The Decree stipulates that VAT is not calculated and paid for the sale of goods or services performed free of charge by the VAT taxpayer, the Ministry of Health, the Republican Health Insurance Fund, or a health institution in the public domain, and the VAT payer is entitled to deduct the previous tax based on that traffic.

The VAT exemption applies to all shipments with a day of turnover, from the day of introduction to the day of the end of the state of emergency in the Republic of Serbia.

For the said turnover of goods or services, the VAT taxpayer is obliged to keep special records, which in particular contain information on:

1) the name, address and PIB of the person to whom the goods or services were traded;
2) the price of the cost, that is, the purchase price of the goods or services whose turnover was performed.

An business entity that exercises the right to direct benefits, although not entitled to it under the Regulation, uses these funds unintentionally or loses the right to direct benefits and fails to repay the amount of direct benefits received in full, together with the associated interest, pending the initiation of the control procedure misdemeanor with a fine of 30-70% of direct payments received, not less than 500,000 dinars for a legal entity, or 100,000 dinars for an entrepreneur. The responsible person in the legal entity will be fined between 50,000 and 100,000 dinars for the offense.

An economic entity that exercises the right to defer payment of public revenue, although it is not entitled to it under the Regulation or loses the right to defer payment of revenue and fails to pay it in full together with the associated interest until the initiation of the control procedure, shall be punished by a fine of 20-50% of the amount of deferred public revenues, not less than 250,000 dinars for a legal entity, or 50,000 dinars for an entrepreneur. The responsible person in the legal entity will be fined between 25,000 and 50,000 dinars for the offense.