Tax newsletter: Serbia — June 2013 - .PDF file.
The Ministry of Finance and Economy continues its intensive work on amendments to the tax laws. After the initial proposal of amendments to tax laws governing personal income tax and property tax, published in March 2013, in April 2013 the Ministry published its new proposal of the amendments to the Law on Property Taxes and the Law on Personal Income Tax. Moreover, the Ministry also proposed amendments to the Law on Property Tax, the Law on Tax Procedure and Tax Administration and the Law on Contributions for Mandatory Social Insurance. In addition, only five months after it last amended the Law on Corporate Income Tax, the Ministry proposed new amendments in the area of corporate income tax.
The vast majority of changes proposed by the government were aimed to fill in the gap in the crumbling Serbian budget, by expansion of the tax base, elimination of tax benefits for all or some categories of taxpayers, and by shifting municipal tax revenues to the central government. Even though the government tried to push its proposal through parliament as quietly as possible and without public discussion, the amendments provoked much resistance in the general public. After a heated debate and much discussion, the parliament adopted the amendments to tax laws on 29 May 2013, but many of the government’s proposals ultimately did not go through. The amendments were published unusually fast after their adoption —on 29 May 2013 (Official Gazette of Republic of Serbia, no. 47/2013)…
Click on the link below to read the rest of the Karanovic & Nikolic briefing.