On 20 March 2020, Serbia published a decree No.38/2020 that includes tax relief measures to mitigate the economic consequences of the coronavirus (COVID-19) pandemic. The decree provides for a reduction in the default interest rate for underpaid or overpaid taxes by 10 percentage points so that it now corresponds to the annual reference interest rate of the National Bank of Serbia (NBS). Given the current annual reference rate of the NBS, the default rate has been reduced from 11.75% to 1.75% per year since March 20, 2020.
The decree also provides that for taxpayers who already have a tax payment agreement with the tax administration, no action will be taken to cancel the decision on the delay of payment of the tax debt, or initiate the forced collection procedure. During this period, no default interest will be charged on the tax debt.
