A recent initiative has emerged in Serbia, proposing amendments to the Value Added Tax Act with a dual purpose: encouraging food donations and combating food waste. These proposed changes carry significant implications, not only for the economy but also for environmental, social, and governance (ESG) considerations. The Proposal The proposed amendments present a strong possibility to tackle food waste by incentivizing surplus food donations from legal entities involved in food production or sales. By exempting such donations from Value Added Tax (VAT), the initiative aims to eliminate financial barriers that often deter businesses from contributing excess food to social and […]
Details
It is common for the media to report on the incomes and prize money earned by professional athletes. However, what is less known are the intricacies of their tax obligations. Before delving into sports-related taxation, it’s essential to recognize that the contributions of professional athletes to their countries. These extend far beyond any monetary value that might arise from taxing their income and prize money. Nevertheless, taxes are an inevitable aspect of life, and the sports industry is no exception. Taxing this revenue is always a hot topic, with sports becoming increasingly lucrative and generating substantial sums of money. Most […]
Details
Amendments to the Tax Procedures and Tax Administration Act (“Act“) were adopted and entered into force on December 20, 2022. The following is a reminder of the most significant changes you should keep an eye on. (Non)postponement of the enforcement procedure The legislator removed paragraph 6 from Article 77 of the Act through the amendments. This article stipulated that the Tax Administration would only initiate compulsory enforcement after a decision had been made on a taxpayer’s request to postpone tax payment. This move implies that the Tax Administration may, without restrictions, initiate enforcement proceedings even though a request for tax deferment has […]
Details
For several years in a row, Serbia is ranked among the leading destinations for foreign investors. According to the Greenfield FDI Performance Index, in 2019 Serbia was ranked first among 105 states observed by the index. A similar status was maintained throughout the subsequent years as Serbia ranked fifth in 2020, and sixth in 2021. According to the World Bank Doing Business rankings, Serbia is ranked among business-friendly jurisdictions, whose ease of doing business index grows regularly. The willingness to invest raises concerns regarding the legal and institutional framework of the host economy. Bilateral investment treaties (“BIT”) have been presented […]
Details
This year brought numerous changes to businesses in Serbia, and digitalization was particularly in focus. Instead of the Fiscal Cash Registers Act, Serbia now has the Fiscalization Act, which will start to apply on January 1, 2022 (the “Act“). Entities who have the obligation to record the turnover of goods and services in retail through the fiscal cash register are obliged to harmonize their business with the provisions of the Act by April 30, 2022. The transition period began on November 1, so that taxpayers can now gradually adjust their businesses to the new fiscalization model. So, what does the […]
Details
In the past few years, virtual currencies have become very attractive to investors across the globe. Their importance for world capital and money flows is constantly growing, which resulted in the need for them to be regulated. That was the precise reason for the Republic of Serbia to adopt the Digital Property Act at the end of last year. Its significance is recognized in defining digital assets for the very first time, thus introducing them into regulated economic flows. However, this Act alone could not resolve all issues and questions related to digital property. For example, the Digital Property Act […]
Details
The EU’s second-highest court sided with Amazon.com (“Amazon”) recently, saying it did not owe millions to Luxembourg in unpaid taxes. On May 12, 2021, the General Court (“Court”) overturned the European Commission’s (“Commission”) order to Amazon to pay EUR 250 million to Luxembourg, as reimbursement of illegal State aid. The Court held that the European Commission’s primary finding of an alleged advantage was based on an incorrect analysis. Precisely, the Court argued that none of the findings set out by the Commission in the contested decision were sufficient to demonstrate the existence of an advantage for the purposes of Article […]
Details
Joe Biden’s first big clash with the largest businesses in the US came as a result of his proposal to increase corporate tax and raised quite a few eyebrows. Although Corporate America initially welcomed the massive government spending plan, it later expressed genuine concerns on the topic. International corporate taxation has long presented a challenge for tax authorities worldwide, causing them losses in billions of tax dollars. The US has been one of the largest backers of negotiations on a large-scale reform of international corporate taxation that have been going on for quite some time. However, an agreement is yet […]
Details
I. Introductory Remarks The application of the Act on Determining the Origin of Property and Special Tax (“Act”) started on March 12, 2021. Since the introduction of the bill, the Act has attracted a lot of attention, both from the professional public and others, not only because of the subject of regulation, but also because of its legal solutions. The Act came into force at the start of 2020, but its implementation was postponed for a year. In that period, amid criticism, some amendments were added to the Act, just before the start of its implementation. It is noticeable that […]
Details
The subject of adequate and/or fair tax regulation is always a hot topic. Not only because it affects a country’s economy, but also people`s everyday lives. Updates to tax regulations are almost always controversial. This article gives an overview of amendments to Serbia’s Value Added Tax (“VAT”), and the wrangling between members of the gig economy and the Tax Administration. The Ministry of Finance of the Republic of Serbia published the Value Added Tax Amendment Bill (“Bill”). The main changes are as follows: Open-end investment funds and alternative investment funds will be liable to VAT; VAT on speculative […]
Details
As much as the rise of new technologies and novel business models has shown as inevitable in the past few decades, so has the payment of taxes. Most taxpayers operating in the Republic of Serbia are aware of their obligation to pay taxes and contributions. However, questions arise for those who work and earn abroad through new and increasingly complex business models (although physically residing mostly in Serbia), and may not be aware that they have to pay taxes and contributions, and should report to the Tax Office. The precipitous rise in the number of new types of creatives and […]
Details
Traveling the world, being part of the global digital community, earning a living in far-flung destinations… Almost everybody has at least once fantasized about living the life of a digital nomad. However, is it as simple as it seems at first glance? Catching Up with a Term… Digital nomads are location-independent workers that avail of amazing technological innovations and modern culture to work remotely. As technology has dramatically reshaped the work environment, swapping the office for some distant destination is becoming a reality for many. Key to this digital nomad lifestyle is the ability and the flexibility to work remotely. […]
Details
The Economic and Financial Affairs Council (“the Council”) on 18 February 2020 adopted revised conclusions on the EU list of non-cooperative jurisdictions for tax purposes (“the EU list”). The EU list (Annex I) includes non-EU countries or territories which had not made sufficient commitments in response to the EU‘s concerns about taxation arrangements. The State of play section (Annex II) lists the jurisdictions which had responded with sufficient commitments. Therefore, the jurisdictions that do not yet comply with all international tax standards but have committed to reforms are included in Annex II. These countries need to take effective actions to […]
Details
“The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple [the biggest tax bill ever imposed outside the US]. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid [indirect subsidies].“1 Following an in-depth state aid investigation of the “sweetheart fiscal deal” between Ireland and Apple, the European Commission has concluded that Apple received illegal tax benefits from Ireland through a favorable tax arrangement selectively provided to this company for a number of consecutive years. […]
Details