Serbia Provides Deferral of Tax and Contributions on Salary and Other Benefits for COVID-19

Serbia published in the Official Gazette on 10 April 2020 the Regulation on benefits to private sector entities and financial assistance to citizens to mitigate the economic impact of COVID-19. For companies, the benefits include:

• a deferral of the payment of taxes and social insurance contributions on employee salaries and wages for the months of March, April, and May 2020, which can be deferred up to 4 January 2021, with the possibility of payment in up to 24 monthly installments; and
• a deferral of the payment of advance corporate income tax for the months of March, April, and May 2020, which can be deferred till the filing deadline of the annual tax return for the relevant year (i.e., the return for 2020), with the possibility of payment in up to 24 monthly installments.

To qualify, it is required that companies have not reduced their number of employees by more than 10% between 15 March and the date the Regulations entered into force (10 April 2020). Certain entities are specifically excluded, however, including entities covered by the List of Beneficiaries of Public Funds, as well as banks, insurance and reinsurance companies, voluntary pension fund management companies, financial leasing providers, and payment institutions and electronic money institutions.