The National Assembly of the Republic of Serbia has adopted Law on amendment to the Law on Tax Procedure and Tax Administration and Law on the amendments to the Law on Property Taxes. The aforementioned laws had been adopted on the 26th day of November 2020, and both laws were published in the “Official Gazette of the RS”, Nos. 144/2020, and came into force as of the 8th day from their publishment. Key amends in the provisions of the subject laws are listed down below as follows:
Key amends of the Law on Tax Procedure and Tax Administration:
-regulation of tax treatment of the open-end investment funds and alternative investment funds
Open-end investment funds and alternative investment funds are newly regulated forms defined by the provisions of positive legislation of Republic of Serbia, and by such provisions these funds are not considered legal persons.
By changing the definition of the term taxpayer, the provisions of the subject law extended the definition of the taxpayer and now includes open-end investment funds and the alternative investment funds.
-electronic submission of a request for the refund of overpaid or incorrectly paid tax and ancillary taxes and delivery of tax documents
As the Republic of Serbia currently undergoes the transformation from analog to electronic format of operation of its administration, this change, enables taxpayers to submit a request for the refund of overpaid or incorrectly paid tax and ancillary taxes electronically. However, the law still permits taxpayers to submit their requests in paper form.
Also new amends prescribe that the tax documents can be delivered in electronic form to a natural person who submits tax applications in electronic form, through the portal of the Tax Administration, in which case no additional consent of the natural person is necessary. To a natural person who submits tax applications, in accordance with the provisions of the law, in paper form, the tax act shall be delivered in electronic form, if the natural person agrees with that manner of delivery.
-rights and obligations of the competent registers regarding the registration of information
By provisions of the subject amends, the Serbian Business Registers Agency cannot register the acquisition of shares or stocks in legal entities, i.e. the incorporation of new legal entities, in cases when a legal entity or entrepreneur is registered as the founder over whom the special measure has been established i.e. if in the period from receiving the notification of the Tax Administration that the legal entity or entrepreneur will be subject to tax control, including actions of the Tax Police in order to detect tax crimes, to receiving notification that the tax control is completed, as well as in the period from receiving the notification that the legal entity or entrepreneur, in accordance with the law, has been temporarily deprived of TIN, to receiving the notification that the TIN has been returned to that entity.
Key amends to the Law on Property Taxes:
-changes regarding tax credit and tax exemptions applications
New amends to the Law on Property Tax prescribe additional condition for realization of tax credit for residential house or apartment by natural persons. According to these new provisions it is foreseen that the taxpayer has to have registered domicile on the address of the property for which the request for tax credit will be submitted. If the taxpayer already submitted other possible tax credit applications, the reduction will be determined only based on the most favorable basis for the taxpayer.
Taxpayer of property tax does not pay tax when the total base for all his real estate in one territory of the local municipality unit does not exceed the amount of 400,000.00 RSD. If the total tax base for all real estate on the territory of local municipality unit amounts to more than 400,000.00 RSD, the right to tax exemption ceases and the tax is determined for all real estate of taxpayer in that territory starting from the occurrence of the tax liability.
-changes regarding classification of real estate
The Legislator has extensively classified and determined different types of the real estates.
-changes regarding digital assets and investment funds in connection to taxes on inheritance and gift
New amends to the provisions of the Law on property taxes prescribe that digital assets are now subject to taxes on inheritance and gift while investment funds and alternative investment funds are now considered taxpayers in regard to taxes on inheritance and gift.