On 10 April 2020, Serbia published a decree in the official gazette providing tax relief as well as direct financial aid to certain companies in response to the coronavirus (COVID-19) pandemic. The following tax measures included in the decree:
- Deferral of the payment of tax on wages and contributions (on behalf of the employee and on behalf of the employer) on salaries for March, April, and May 2020.
- Certain entrepreneurs will be able to defer paying their tax advance payments and contributions on self-employed income for the months of March, April, and May 2020 until 4 January 2021.
- Deferral of paying corporate profit tax in the second quarter of this year. This measure has the goal to enhance the liquidity of legal entities. The taxpayers are obliged to submit their tax returns within the legal deadlines.
- (VAT) exemption for donation of goods with a goal of motivating donations to institutions that are involved in implementation of measures for protection from COVID-19.
- Deadlines in legal matters are relaxed in a way that clients won’t be punished for not meeting the deadlines during the state of alarm. In court procedures, the deadlines are not calculated during the state of alarm.
- To all the taxpayers who reached an Agreement with the Tax Administration to pay taxes in installments, during the state of alarm, Tax Administration will not suspend the Agreement, nor calculate the interest rate for the installments not paid on time.
