News That Pay Off: Learn All About the Changes to the Law on Tax Procedure and Tax Administration

On December 9, 2022, the National Assembly of the Republic of Serbia adopted the Law on Amendments to the Law on Tax Procedure and Tax Administration. The Law was published in the Official Gazette of the Republic of Serbia and entered into force on December 20, 2022.

CONFIDA Serbia – a tax advisory, consulting and accounting company with a team of experts for tax-legal, audit and accounting regulations – below presents the most significant changes to the Law on Tax Procedure and Tax Administration (henceforth: ZPPPA).

The taxpayer’s request for deferment of tax payment

The amendments to the ZPPPA delete the Article that provided a limitation for the Tax Administration – the Tax Authorities will not issue a Decision on compulsory debt settlement if the deferment request of tax payment submits within the deadline specified in the admonishment until the request is decided.

CONFIDA Serbia notes that, with the adopted changes, the Tax Authorities no longer have this limitation. If the deferment request of tax payment by the deadline is submitted, Tax Authorities can initiate the procedure of compulsory debt settlement.

The implications for the taxpayer are the increase in the tax debt during the compulsory debt settlement, the possible costs of compulsory debt settlement, regardless of the fact of the request submission, and the potential outcome of the decision on the taxpayer’s submitted request.

You can follow the news from the world of taxes, laws, auditing and accounting in the “Blog” section at CONFIDA Serbia.

The duration of the ban on the performance of activities imposed during tax control

Taxpayers who have irregularities during the tax audit (goods and services are not accompanied by reliable documentation of importance for tax determination, non-payment of the daily purchases, employment of a person without an employment contract or other employment act and non-reporting of the person to the competent organization of mandatory social insurance, non-registration turnover through a fiscal cash register, an electronic fiscal device or in another prescribed manner) a ban on the performance of the activity Law imposes:

• for 15 days– if the irregularity occurred for the first time;
• for 90 days– if the irregularity occurred a second time;
• for one year– if the irregularity occurred for the third time.

Imposing a ban on the performance of certain jobs for a repeated offence

A legal representative of a legal entity may be sentenced to a fine and a measure of prohibiting the performance of certain activities if, within two years from the date of finality of the conviction, reoffends the following misdemeanors:

• failure to submit a tax return, failure to calculate, and failure to pay taxes;
• failure to submit a tax return, calculation but non-payment of taxes;
• submitting a tax return, but not paying taxes and
• failure to submit a tax return in prescribed cases not to carry out self-taxation, or by order of tax control.

CONFIDA Serbia notes that, therefore, the legalization amendment, which ensures the possibility of an additional imposition of a prohibition measure with a fine applied exclusively to returnees in the commission of the misdemeanors. Additionally, the prohibition measure can be imposed for six months to three years.

With CONFIDA Serbia to a new and original way of thinking

CONFIDA Serbia advises clients during all the phases of development and in all fields of business. A team of experts for tax-legal, audit and accounting regulations provides answers to all the questions. Due to the combination of international experience and local expertise, they create solutions for clients while at the same time providing support in the realization of their business vision.

For all additional information or queries, visit: www.confida.rs

Confida Consulting d.o.o. Beograd

Poreska uprava Srbije

Confida Serbia

Tax Administration

Law on Amendments to the Law on Tax Procedure and Tax Administration

most significant changes within the Law on Tax Procedure and Tax Administration

amendments to ZPPPA

deferment of tax payment

taxpayers request for deferment of tax payment

compulsory debt settlement

measure of a ban on the performance of the activity