Frequently Asked Questions

Revenues from hospitality services are considered income that an individual, in accordance with the laws governing hospitality and tourism, earns from providing hospitality services in a domestic hospitality facility and a rural tourism household facility for a period of up to 30 days.

A domestic hospitality facility is a type of facility: a house, an apartment, or a room. A rural tourism household facility is a facility or group of facilities where accommodation services are provided, located in a rural (village) environment with elements of local features and heritage.

The taxable income for the calendar year is the amount of 5% of the average monthly salary per employee in the Republic in the year preceding the year for which the tax is determined, multiplied by the number of individual beds or camping plots and the corresponding coefficient according to the category of the tourist place in accordance with the laws governing hospitality and tourism. The tax rate is 20%.

The taxpayer is an individual who earns income.

An individual generating income by providing hospitality services is obligated to submit a tax return using PPDG-4R form to the Tax Administration within 15 days from the date when the decision classifying the home industry and rural tourism facility into an appropriate category becomes legally binding, in accordance with the law governing hospitality.

The PPDG-4R tax return can be filed either electronically or in written (paper) form. The electronic tax return is submitted via the Tax Administration's eTaxes portal, and in this case, it is necessary to possess a qualified electronic certificate. Internet kiosks available at all branches of the Tax Administration can also be used for this purpose. The written form of the PPDG-4R tax return is filed directly or by mail to the Tax Administration branch competent for the territory where the hospitality facility is located.

Based on the decision of the competent tax authority, the income tax for providing hospitality services is determined and paid within 15 days from the end of the quarter.

More information can be found in the guide titled "Taxation of Income from Individuals Providing Hospitality Services" available on the Tax Administration's website, www.purs.gov.rs, under Your Tax Consultant / Tax Guides (link https://www.purs.gov.rs/vas-poreznik/Poreskiinformatori.html).

The tax return for corporate income tax (PDP Form) is filed electronically via the eTaxes portal within 180 days from the end of the period for which the tax is determined. The taxpayer is required to file a return in which the tax is calculated. Along with the tax return, the taxpayer submits the tax balance sheet and necessary documentation.

For the year 2024, the PDP tax return is to be filed by 30 June 2025.

If the taxpayer has paid less tax as an advance payment than they were required to pay according to the liability calculated in the return, they must pay the difference no later than the filing of the tax return. If the taxpayer has paid more tax as an advance payment than they were required to pay according to the liability calculated in the tax return, the overpaid tax is accounted as an advance payment for the next period or is returned to the taxpayer upon their request.

The filing of the tax return for corporate income tax is explained in the User Guide for the application of the regulations on the content and manner of submitting the tax return for corporate income tax, which is available on the Tax Administration website in the section Legal Entities / Corporate Income Tax / Instructions.

The personal income tax on income earned in 2024 is calculated and paid in 2025 through a self-assessment system.

Based on data from official records, the Tax Administration will post a filled tax return for the annual personal income tax for 2024 (PP GPDG) on the eTaxes portal for individuals who earned income subject to the annual personal income tax in 2024, which, reduced by paid taxes and contributions, exceeds the amount of RSD 4,874,508, as a working version of the return (status 'in preparation').

In cases where the Tax Administration has not prepared a pre-filled tax return and posted it on the Tax Administration portal (if the individual's identifier is a passport number, or if the tax authority does not have the necessary data), taxpayers who have earned an income subject to annual personal income tax higher than RSD 4,874,508 in the calendar year 2024 are required to fill out and file the tax return for the annual personal income tax for the year 2024 electronically via the Tax Administration portal, no later than 15 May 2025.

The income subject to annual personal income tax is shown in field 3.12 PP GPDG and is determined as the difference between:

- the annual total of taxable incomes (reduced by taxes and benefits for mandatory social insurance paid on this income and further reduced for individuals under 40 years old), increased by the amount paid based on the refund of overpaid benefits for mandatory social insurance and

- the non-taxable amount, which for the year 2024 amounts to RSD 4,874,508.

The deadline for verifying the data shown in the posted return, modifying it, filing the tax return, and paying the tax is 15 May 2025.

Individuals whose income for taxation with the annual personal income tax is 0 dinars (field 3.12 in the PP GPDG Form) are not required to submit the PP GPDG tax return.

Please note that individuals who were under 40 years of age as of 31 December 2024, with the annual total of salaries and taxable income from independent activities and income from copyrights, related rights, and industrial property rights, previously reduced by paid taxes and contributions, that are further reduced by 4,874,508, but not exceeding the total amount of salaries and mentioned taxable income, where after the special reduction for taxpayers under 40 years, the income for taxation (field 3.12 of the tax return) is 0 dinars, are not required to submit the PP GPDG tax return.

The amount of personal deduction for the taxpayer in field 3.13.1 is automatically entered in the PP GPDG tax return.

The amount of personal deduction for dependent family members in field 3.13.2 is not automatically entered; instead, the taxpayer is obliged to enter the data themselves. The amount of personal deduction for dependent family members is determined as the balance of the number of dependent family members from part 2 of the tax return and the amount representing 15% of the average salary per employee paid in the Republic of Serbia for the year for which the tax is being assessed.

If the taxpayer enters an amount in field 3.13.2 that is greater than the amount obtained as the balance of the number of dependent family members from part 2 of the tax return and the amount representing 15% of the average salary per employee paid in the Republic of Serbia for the year for which the tax is assessed, the entered amount in this field will be automatically corrected.

The sum of the amounts from fields 3.13.1 and 3.13.2 is automatically entered in field 3.13 Personal Deductions.

When a taxpayer, after filing the PP GPDG tax return, realizes that they have not attached the necessary evidence, they are obliged to submit an amended tax return with attachments, in accordance with Article 40 of the Law on Tax Procedure and Tax Administration, to rectify the omission.

In the mentioned situation, the evidence is not submitted in paper form to the competent branch of the Tax Administration.

The tax determined by self-assessment must be paid no later than the deadline for filing the tax return. Thus, the annual personal income tax must be paid by the taxpayer no later than 15 May of the year following the year for which the tax liability was determined.

If desired, the taxpayer can settle their tax liability before the aforementioned date.

When the taxpayer files the tax return and it receives the status "Recorded," the applicant receives payment order details, and after saving the payment order, a QR code will be displayed on the screen, which can be used to pay the tax liability.

Taxpayers who do not settle their tax liability within the prescribed period will have the amount of the liability increased by the corresponding interest, calculated in accordance with the provisions of the Law on Tax Procedure and Tax Administration.

Individuals for whom the Tax Administration files a pre-filled PP GPDG tax return automatically have an activated account on the Tax Administration's eTaxes portal.

Individuals whose account on the Tax Administration's eTaxes portal is not activated, and who have earned income subject to annual personal income tax, which, reduced by paid taxes and contributions, exceeds the amount of RSD 4,874,508, are required to fill out and file the tax return for the annual personal income tax for the year 2024 in electronic form no later than 15 May 2025. To be able to file the PP GPDG tax return, they must first register as taxpayers.

The first step in the registration process is filling in basic information about the taxpayer through the registration form on the eTaxes portal (section - Registration of an individual as a taxpayer), which is accessed using a qualified electronic certificate. After 24 hours from the completed registration, by the Tax Administration, these taxpayers will be able to select the PP GPDG tax return in the "Return Selection" section, and fill it out by selecting the "Text Entry" option.

Those taxpayers who do not see the registration form on the portal should send their data - name, surname, unique citizen identification number, and contact phone - via the email address evidentiranje.stranci@purs.gov.rs. After receiving confirmation of completed registration, which is sent to the taxpayer's email address, the account on the eTaxes portal will be active the same day after 5 PM, after which it will be possible to file the tax return in the aforementioned manner.

Required documentation for assigning a TIN to a non-resident legal entity:

1. Registration application for legal entities and business units - PR-1 Form;
2. Tax proxy - certified translation by a court translator and a photocopy of the power of attorney in the original language (if the tax representative is a lawyer, the proxy in Serbian is certified with their seal).
3. Original and photocopy of the registration act in the original language;
4. Proof - a statement explaining why a Tax Identification Number is necessary.

Required documentation for assigning a Tax Identification Number to a non-resident individual:

1. Application for registration of a non-resident individual - Form PR-3;
2. Tax power of attorney notarized (if the tax representative is a lawyer, the power of attorney in Serbian is certified with his stamp). If the power of attorney is given in the original language, a photocopy of it and a translation certified by a court translator must be attached.
3. Notarized copy of a passport or ID card;
4. Proof - a statement explaining why a Tax Identification Number is necessary.

The right to a VAT refund for purchasing a first home, based on a filed request, is granted to an adult citizen of the Republic, residing in the territory of the Republic, who is buying their first home (hereinafter referred to as the first-time homebuyer). The first-time homebuyer can claim a VAT refund under the following conditions:

1) that from 1 July 2006, until the date of notarization of the sales contract through which they acquire their first home, they have not owned, co-owned, or jointly owned a home within the territory of the Republic;

2) that the agreed price of the home including VAT has been fully paid to the seller through payment into the seller's current account, or into appropriate accounts in accordance with the law in the case of the sale of a home as a mortgaged property, or in an enforcement procedure when the payment of the home price including VAT is made into appropriate accounts in accordance with the law.

The right to a VAT refund can be claimed for a home whose area for the first-time homebuyer is up to 40 m², and for members of their household up to 15 m² per member who has not owned, co-owned, or jointly owned a home within the territory of the Republic from 1 July 2006, until the date of notarization of the sales contract, and for the ownership share in the home up to an area proportional to the ownership share relative to the area up to 40 m², or up to 15 m².

The right to a VAT refund does not apply to:

1) a homebuyer who has already claimed a VAT refund based on the purchase of their first home;

2) a member of the household of the first-time homebuyer who has claimed a VAT refund, in the case when that household member purchases a home;

3) a homebuyer who has acquired their first home without the obligation of the seller to pay the property transfer tax based on the purchase of their first home in accordance with the law governing property taxes;

4) a member of the household of a homebuyer who has acquired their first home without the obligation of the seller to pay the tax on the transfer of absolute rights based on the purchase of their first home in accordance with the law governing property taxes, and for whom that tax exemption has been achieved.

The competent tax authority issues a decision on the VAT refund to the first-time homebuyer after conducting a control procedure to verify the fulfillment of conditions that must be met on the date of notarization of the sales contract, except for the condition related to the paid price of the home including VAT which must be met on the date of submitting the request.

The annual personal income tax on income earned in 2024 will be calculated and paid by the self-assessment system in 2025. The Tax Administration will, by 1 April of the year following the year for which the annual personal income tax is determined, based on available data from official records, pre-fill the tax return for determining the annual personal income tax for 2024 and post it as a working version of the return (status "in preparation") on the eTaxes portal. The taxpayer is required to make changes or additions to the tax return, in the part where accurate and appropriate data is not stated, and thereafter file the tax return exclusively in electronic form via the Tax Administration portal. The most common example of additional data entry relates to the number of dependents in the taxpayer's household as an input element for calculating the annual personal income tax. In situations where taxpayers agree with the data shown in their pre-filled tax return (do not make any corrections or additions), they are also required to submit the return at the same place by selecting the "Sign and Submit" option.

If the taxpayer does not submit the tax return by 15 May, the Tax Administration will do it instead. The tax return for determining the annual personal income tax is submitted exclusively in electronic form via the eTaxes portal of the Tax Administration. In cases where the Tax Administration has not prepared a pre-filled tax return and posted it on the portal of the Tax Administration (if the identifier of the individual is a passport number, or if the tax authority does not have the necessary data), taxpayers are required to fill out and file the tax return for the annual personal income tax themselves in electronic form via the Tax Administration portal, no later than 15 May.

To access the Tax Administration portal, it is necessary for the taxpayer to possess a qualified electronic certificate. If the taxpayer does not have a qualified electronic certificate, they can authorize another person, a resident of the Republic of Serbia who has a qualified electronic certificate, by submitting the PEP form to the competent branch of the Tax Administration according to their place of residence. The deadline for submitting the tax return is no later than 15 May of the year following the year for which the annual income tax is determined. The tax must be paid no later than the deadline for filing the tax return by 15 May.

An individual who starts a business activity during the year and does not register with the organization maintaining the registry of business entities (e.g., registered with the Bar Association in the directory of lawyers) is not obligated to submit the PPDG-1R tax return as of 2023.

The mentioned taxpayers submit the request for flat-rate taxation in electronic form via the eTaxes portal, within 5 days from the date of registration with the Tax Administration, i.e., from the date of TIN assignment, and no later than 31 December of the current year, after which the Tax Administration will issue a decision on determining tax liabilities.

Starting from 2023, the PPDG-1R tax return does not have to be filed in the following situations:

1. Commencement of independent operations;
2. Termination of independent operations;
3. Suspension of independent operations;
4. Resuming independent operations after a temporary suspension;
5. Change of business ownership;
6. Change of head office seat;
7. Change of business activity code;
8. Transition from taxation based on actual income to flat-rate taxation (exception: a sole proprietor or another individual who loses VAT payer status is required to file a PPDG-1R tax return along with the request for flat-rate taxation).

In the mentioned cases, the flat-rate sole proprietor is no longer required to submit the PPDG-1R tax return if the change pertains to the period after 1 January 2023.

The decision on tax liability assessment is made automatically.

For changes made before the aforementioned date, there is still an obligation to file tax returns with the appropriate basis for submission.

A single bookkeeping agency can handle registration for multiple taxpayers. Each taxpayer must individually grant authorization for electronic operations by submitting a completed PEP form to the relevant branch of the Tax Administration. If the legal representative of the taxpayer possesses a qualified electronic certificate, they can assign authorization to an individual from the accounting agency directly on the eTaxes portal in the authorization section.

The subject of VAT taxation includes the supply of goods and services provided by a taxpayer in the Republic for a fee, within the scope of business activities, as well as the import of goods into the Republic.

A tax debtor is a taxpayer who carries out taxable transactions of goods and services, except when the obligation to pay VAT, in accordance with the Law on Value Added Tax, lies with another party.

Exceptionally, the taxpayer is the recipient of goods and services in the construction sector, a VAT taxpayer, for transactions carried out by a VAT taxpayer, if the value of that transaction exceeds RSD 500,000, excluding VAT.

In accordance with the aforementioned, when a legal entity that is a VAT payer provides construction services to another VAT payer, the recipient of goods and services is obligated to calculate the VAT.

A taxpayer, upon whom the competent Tax Authority has issued a decision determining the tax liability, is entitled, according to the legal remedy instructions, to file an appeal against the decision within the statutory period.

An appeal must be filed within 15 days from the date of receipt of the tax administrative act, unless otherwise stipulated by law.

An appeal is submitted to the competent appellate authority and is delivered directly or by registered mail to the office of the initial authority. The appeal must specify the tax administrative act being contested, the reasons for the appeal, and the evidence supporting the annulment, modification, or revocation of that act.

The complainant is required to sign the complaint. In the complaint procedure, the burden of proof lies with the appellant.

For taxpayers whose registration is not under the jurisdiction of the Business Registers Agency, the TIN is determined and assigned based on the registration application, which is submitted to the Tax Administration, or ex officio, in cases prescribed by the Law on Tax Procedure and Tax Administration.

The Central Tax Administration assigns the Tax Identification Number (TIN) and conducts the registration of taxpayers who are not under the jurisdiction of the Agency. This is based on the registration application or ex officio on the PR-1 Form- Registration Form for Legal Entities and Business Units, PR-2 Form- Registration Form for Sole Proprietors, and Form PR-3 - Registration Form for Non-resident Individuals.

The application for registration is submitted to the respective Tax Administration branch office in paper form.

Sole proprietors who are entitled to wage compensation during temporary incapacity for work, and conduct activities through an authorized manager, are not exempt from the obligation to assess and pay benefits for mandatory social insurance on income from independent activities, for the period in which they are entitled to wage compensation.

According to the provision of Art. 65b para. 2 of the Law on Benefits for Mandatory Social Insurance, which has been in effect since 1 July 2018, it is prescribed that for a sole proprietor who continues to conduct business activities while receiving other benefits based on childbirth and child care and special child care in accordance with the law governing financial support for families with children, the contribution base is personal earnings, i.e., taxable profit, i.e., flat-rate determined income.

The taxpayer responsible for paying taxes and contributions during the receipt of other benefits is the sole proprietor.

The income payer, i.e., the compensation payer - a resident legal entity calculates, withholds, and pays the withholding tax within three days from the date of income payment to a non-resident legal entity in accordance with Article 40 of the Corporate Income Tax Law, or within three days from the date of compensation payment to a non-resident and resident legal entity.

One of the innovations is the lump-sum tax and contributions calculator available on the Tax Administration portal (www.purs.gov.rs). By entering the specified parameters, taxpayers can calculate the amount of monthly flat-rate tax themselves.

Sole proprietors opt for flat-rate taxation by submitting a request for flat-rate taxation.

Taxpayers who keep business books and wish to switch to flat-rate taxation from the next year must submit a request for flat-rate taxation exclusively electronically via the Tax Administration portal by 31 October of the current year.

The request for flat-rate taxation can be submitted within 15 days from the date of receipt of the act of the competent tax authority confirming the deletion from the VAT registry in accordance with the law governing VAT, and no later than 31 December of the current year for the following year, in electronic form via the Tax Administration portal.

For entities deleted from the VAT registry, for example, on 20 December of the current year, the deadline for submitting a request for flat-rate taxation is 31 December of the current year.

Newly established sole proprietors who register with the Business Registers Agency (APR) opt for flat-rate taxation exclusively at the time of registration.

Sole proprietors who do not register with the Business Registers Agency (lawyers), submit a request for flat-rate taxation in electronic form via the Tax Administration portal, within 5 days from the date of registration with the Tax Administration, i.e., from the date of assignment of the Tax Identification Number (TIN), and no later than 31 December of the current year.

Since 13 January 2020, the delivery of decisions on determined obligations for flat-rate entrepreneurs is exclusively in electronic form via the Tax Administration portal (eTaxes). Newly established flat-rate entrepreneurs will receive a decision on the assessed liability in electronic form via the Tax Administration portal within 48 hours from the date of registration of the business entity in the Business Registers Agency.

Every taxpayer under the flat-rate taxation system has access to a tax mailbox on the Tax Administration portal, through which they will receive decisions on the assessed liability. Access to the eTaxes portal requires a qualified electronic certificate. If access to the tax mailbox is performed by another person on behalf of the taxpayer, the taxpayer must authorize that person. Qualified electronic certificates are issued by authorized Certification Bodies: the Ministry of Interior, the Serbian Chamber of Commerce and Industry, PTT, Halcom, and E-Smart Systems. All information about the acquisition and use of certificates can be found on their websites.

In the case of transferring rights to a used motor vehicle between a legal entity and a natural person, or between two legal entities, the tax liability for the transfer of absolute rights falls on the BUYER.

The taxpayer responsible for the transfer of absolute rights must submit the tax return using PPI-4 form- Tax Return for Assessing the Tax on the Transfer of Absolute Rights, except for real estate.

The PPI-4 tax return must be submitted electronically via the Tax Administration's eTaxes portal, in which case the submitter must possess a qualified electronic certificate with a chip issued by one of the certification bodies in the Republic of Serbia. Internet kiosks available at all branches of the Tax Administration can also be used for this purpose. When submitting the declaration electronically, accompanying documentation must be scanned and submitted along with the declaration.

In the case of transferring rights to a used motor vehicle between a legal and a natural person, when the taxpayer – the buyer is a natural person, the tax declaration can be submitted both electronically and in paper form directly or via mail to the competent branch of the Tax Administration according to the buyer's residence.

A sole proprietor and an agricultural sole proprietor can opt for the payment of personal wages. In this case, they are obliged to submit a notification in electronic form, via the Tax Administration portal, no later than 15 December of the current year for the period starting 1 January of the following year.

An individual initiating a business activity must exclusively submit a notification of their decision to disburse personal earnings at the moment of registration to the competent organization maintaining the registry of economic operators, which will then forward the request to the Tax Administration.

Individuals who do not register with the organization that maintains the business, and decide to make personal salary payments, must submit their decision in electronic form via the Tax Administration portal within five days from the date of registration with the Tax Administration, or the date of VAT number assignment, but no later than 31 December of the current year (this applies to taxpayers who are assigned a VAT number after 26 December).

The decision cannot be changed during the tax period. If an entrepreneur decides to stop making personal salary payments, they are required to notify the Tax Administration electronically via the portal by 15 December of the current year.

If the payment of the owed tax is deferred, interest is calculated for the duration of the deferral at a rate equal to the annual reference rate of the National Bank of Serbia.

A taxpayer who consistently pays the installments of deferred liabilities, including current liabilities, is granted a 50% waiver on the interest related to that debt for the period paid, upon completion of every 12 months, until the debt is fully settled. If the taxpayer pays off the entire tax debt before the installment payment deadline, 50% of the interest on that debt is waived for the taxpayer.

If the taxpayer fails to adhere to the deadlines specified in the decision to defer payment of the owed tax, or if they fail to settle the current liability during the period for which the payment has been deferred, unless they have submitted a request to defer payment of that current liability, the Tax Administration will, ex officio, revoke the decision and collect the outstanding tax debt due.

1) from security funds;

2) In the process of enforced collection of tax debt.

A taxpayer is not required to provide security for payment if the tax owed on the date of submitting a request for its deferment amounts to:

• For a legal entity, a sole proprietor, and a fund - up to RSD 1,500,000.
• For an individual - up to RSD 200,000.

In the decision-making process regarding the deferral of tax payments, the taxpayer is required to provide collateral for the collection, which cannot be lower than the amount of the tax owed whose payment is being deferred. The forms of collateral for collection include:

1) mortgage on the taxpayer's real estate property;

2) inventory of movable assets of the taxpayer;

3) irrevocable banking guarantee;

4) the legal entity that owns the property;

5) a promissory note endorsed by two guarantors, from whose earnings, on which

an administrative ban is established, tax debt can be collected

6) promissory note endorsed by a commercial bank.

If the owed tax is secured by the means listed in points 1), 2), and 4), the security assets must not be less than 120% of the amount of the tax debt being secured.

Excise tax on alcoholic beverages is not charged based on the percentage of alcohol they contain, but rather it is levied per liter of alcoholic beverage, in amounts specified by law. For alcoholic beverages packaged in units other than one liter, the excise tax is adjusted proportionally to the packaging size.

The issuance of control excise stamps is carried out by the National Bank of Serbia - Institute for Manufacturing Banknotes and Coins Topčider, upon prior approval from the Ministry of Finance. Requests for the issuance of control excise stamps for cigarettes and alcoholic beverages are submitted using ZAM/CA Form - Request for Issuance of Control Excise Stamps, and for coffee using ZAM/K Form- Request for Issuance of Control Excise Stamps to the Ministry of Finance, which issues approval and maintains a record of issued control excise stamps. 

Every taxpayer of income from independent activities as defined by the law governing personal income tax, and every taxpayer of corporate profit tax as defined by the law governing corporate profit tax, who engages in retail sales, is subject to fiscalization.

A taxpayer under fiscalization is obligated to record every individual retail transaction regardless of the payment method (cash, instant transfer approval, check, payment card, or any other non-cash method), including advances received for future retail transactions, through an electronic fiscal device. Retail sales include every transaction of goods and services to individuals, as well as transactions in retail outlets, regardless of whether the customer is an individual, legal entity, or entrepreneur, including transactions made through self-service devices - vending machines.

Retail sales do not include transactions conducted outside of a retail outlet if the recipient of the goods and services, or the goods and services to be delivered or provided in the case of received advances, is a legal entity or a taxpayer of income from independent activities as defined by the law governing personal income tax.

A retail outlet is considered any business space or room primarily used for the transaction of goods and services to individuals, as well as the headquarters of the taxpayer under fiscalization engaged in retail sales online through distance selling.

Issuing fiscal receipts is mandatory for all taxpayers under fiscalization who engage in retail sales, except for those performing activities specified in the Regulation on determining activities where there is no obligation to record retail transactions through an electronic fiscal device.

For more information on fiscalization, please visit the Tax Administration website https://www.purs.gov.rs/eFiskalizacija.html, and http://budiefiskalizovan.gov.rs/.

Inheritance and gift tax is not paid by the heir of the first line of succession (the first line of succession includes the decedent's descendants and his spouse), spouse, and parent of the decedent, or the recipient of the gift of the first line of succession and the spouse of the gift-giver.

A tax return is not submitted for the assessment of inheritance and gift tax, based on a document composed, notarized, or confirmed by a notary public, or a final decision made by a notary public in the exercise of legally delegated public powers, in the case when the tax liability arises on the day of composing, notarizing, or confirming the document, or on the day of the finality of the decision made by the notary public, for:

- inheritance of things and rights earned based on a final decision on inheritance made by a notary public in the exercise of legally delegated public powers.

The notary public is obliged to deliver the document, within 24 hours from the moment of performing the act, or the final decision made within the framework of legally delegated public powers, within 24 hours from the day of finality, officially, via the e-counter, or via the e-counter and via SMO, to the authority responsible for cadastral affairs.

The authority responsible for cadastral affairs is obliged to immediately submit the received document, opinions, evidence, statement, and data, ex officio via the e-counter, to the tax authority upon receipt.

The taxpayer for inheritance and gift tax (heir) is required to file a tax return with the appropriate documentation necessary to assess the tax within 30 days from the date of the tax liability, except when the obligation to submit the application is held by a notary public.

In cases where the heir is liable to submit the application, we inform you that the tax return for assessing inheritance and gift tax (PPI-3) must be submitted in electronic form as of 1 January 2018. However, individuals who are required to submit a tax return not related to business activities may submit their return either electronically or in written form - directly or by mail.

As of 1 January 2022, the entity obligated to pay the property transfer tax on a used motor vehicle is the buyer, or the acquirer of the absolute right.

Changes regarding the tax on the transfer of absolute rights on used motor vehicles conducted between individuals who are not subject to VAT are effective as of 31 March 2022.

The property transfrer tax is determined by self-assessment - on the transfer of ownership rights on a used motor vehicle conducted between individuals who are not subject to VAT.

The tax on the transfer of absolute rights to the transfer of property rights on a used motor vehicle, which is determined by self-assessment, is paid in an amount equal to the balance of the tax base and the tax rate, to the prescribed account for payment of public revenues, until the submission of the request for a change in the vehicle registration license, and proof of paid tax is submitted with the request for a change in the vehicle registration license.

As of 31 March 2022, the "Plati" portal offers an electronic service for citizens who purchase a used motor vehicle to calculate and pay the tax on the transfer of absolute rights themselves.

In four simple steps, after entering personal data and data from the vehicle registration license, you will receive the amount of tax, which you can immediately pay on the portal by card, or you can generate a payment slip for payment via e-banking or by scanning a QR code, or print a payment slip and settle the obligation at the counter of the post office or bank.

After the notarization of the signature on the contract, the buyer can go directly to the counter of the  Ministry of Interior to submit a request for a new vehicle registration license.

It is not necessary to register on the eGovernment Portal to pay the tax. You only need to enter data such as your ID number, address, and three pieces of information from your vehicle registration license. Citizens who have not yet started using electronic services and the Plati portal can obtain filled-out payment slips at the counters of the Ministry of Interior, Tax Administration, and Post Office.

The electronic tax payment service for the transfer of absolute rights is located at https://plati.euprava.gov.rs/#/.

The change in the vehicle registration license due to the transfer of property rights on a motor vehicle is carried out with proof of paid tax in the prescribed amount. The authority responsible for entering change in the vehicle registration license is obliged to provide the tax authority, within 30 days from the day of the change in the vehicle registration license, with the contract or other act that is the basis for the transfer of property rights on the used motor vehicle carried out between natural persons who are not subject to VAT, as well as proof of paid tax in the prescribed amount.

On the website of the Tax Administration, in the section Individuals / Transfer of ownership of a used vehicle / Transfer of ownership of a used vehicle between two individuals, there is a Guide for electronic calculation and electronic payment of tax on the transfer of absolute rights during the transfer of ownership of a used motor vehicle.

To qualify for a tax exemption, the entity obligated to pay the property transfer tax must provide the tax authority with a notarized statement from the buyer that they are purchasing their first apartment for themselves or for themselves and certain members of their household using IKPS-PAP form, along with other evidence proving that the conditions for exemption have been met.

It is also necessary to provide the original or a notarized copy of the apartment sale agreement.

As for the documentation required for tax exemption, we hereby refer you to the Explanation regarding exemption from payment of the property transfer tax on an apartment when purchasing the first apartment, available on the Tax Administration website www.purs.gov.rs under Individuals/VAT/Explanations.

Having in mind that the Explanation regarding the exemption from paying property transfer tax on an apartment when purchasing the first apartment was posted on the Tax Administration website before 8 June 2016, (namely, before the provisions of the Law on General Administrative Procedure related to the exchange of official data came into force) the taxpayer is obligated to provide certain evidence officially maintained by other authorities themselves.

The Tax Administration is obligated to examine ex officio the data on facts necessary for decision-making, to obtain and process such data. If the official records are maintained by another public authority (e.g., birth register certificate, citizenship certificate, etc.), the Tax Administration will promptly request the data, and the requested authority must provide the data within 15 days.

The party has the right to obtain data on facts that are officially recorded on their own when necessary for deciding in a procedure initiated at the request of the party, if it concerns personal data and there is an explicit written statement by the party. However, they may declare that they will obtain only certain (not all) personal data, in which case the Tax Administration is still obligated to collect the missing data not included in the party's statement.

Capital gain represents the positive difference between the selling price of the apartment and the purchase price obtained by the transfer of real rights on real estate with monetary or in-kind compensation.

Capital gains tax is not paid on the difference resulting from the transfer of rights on real estate when they are acquired by inheritance in the first line of succession, or when the transfer is made between spouses and blood relatives in the direct line, also when the transfer is made between divorced spouses, and is directly related to the divorce, or when selling real estate that the owner had in their possession continuously for a minimum of ten years.

If the funds obtained from the sale of real estate are invested within 90 days from the day of sale in solving your housing issue and the housing issues of your family members, or household, you are exempt from tax on the generated capital gain. Moreover, if within 12 months from the day of sale of the real estate, the funds obtained from the sale are invested in solving your housing issue or that of your family members, household, you will be entitled to a refund of the paid tax. If only part of the funds obtained from the sale of real estate is invested in solving the housing issue, the tax liability is proportionally reduced.

The tax return for assessing capital gains tax (of natural persons, including sole proprietors) is submitted exclusively in electronic form as of 1 January 2018.

To submit the PPDG-3R tax return in electronic form, the applicant must possess a digital certificate, which is used to log onto the Tax Administration website. Subsequently, in the e-Taxes section, the applicant selects the action "Submit Application".

Exceptionally, individual taxpayers who are obligated to submit a tax return not related to business activities may submit the PPDG-3R tax return either electronically or in written form – directly or via mail.

The tax return is submitted to the tax authority in the municipality where the taxpayer – seller – natural person, resides or is domiciled.

When selling real estate, you will be obliged to pay the property transfer tax. If the sale generates income, as the difference between the selling price and the purchase price of the property, you will also pay capital gains tax.

The entity obligated to pay the property transfer tax when selling real estate is the seller. The tax rate on the transfer of absolute rights is 2.5%.

As of 1 January 2020, the tax return is not filed for assessing the property transfer tax, based on the document prepared, certified, or confirmed by a notary public for the transfer of absolute rights on real estate.

The notary public is obliged to submit the document within 24 hours from the moment of the action, ex officio, through the e-counter, or through the e-counter and via SMO, to the authority responsible for cadastral affairs.

If the sale of real estate results in a positive difference between the selling price and the purchase price of the property, income is generated on which capital gains tax is paid. The capital gains tax rate is 15%. The tax return required to assess the capital gains tax is submitted on the PPDG-3R form to the organizational unit of the Tax Administration competent for the territory of your residence.

A legal entity does not calculate and pay VAT when selling a used passenger vehicle for which the property transfer was paid at the time of purchase. For this transaction, the buyer submits a PPI-4 tax return for the property transfer and pays the tax.

If on the day of notarization of the apartment sale contract, based on which the first-time home buyer acquires the apartment, the family members do not have the same residence as the first-time home buyer, in this case, the first-time home buyer is not entitled to a VAT refund for family members. An adult citizen of the Republic of Serbia, residing in the territory of the Republic of Serbia, who buys the first apartment, is entitled to a VAT refund based on the purchase of the first apartment for themselves and members of their household, provided all conditions for exercising this right are met.

One of the conditions for the first-time home buyer to exercise the right to a VAT refund for family members is that the family members are simultaneously members of their household, where the household of the first-time home buyer is defined as a community of life, earning, and spending of income of the buyer of the first apartment, their spouse, the buyer's children, the buyer's adoptees, children of the buyer's spouse, adoptees of the buyer's spouse, the buyer's parents, their adopters, parents of the buyer's spouse, adopters of the buyer's spouse, with the same residence as the first-time home buyer.

You can read about the right to a VAT refund for the first-time home buyer on the Tax Administration website www.purs.gov.rs, under the section Individuals /VAT/ Explanations.

Resident legal entities that pay income subject to withholding tax according to the provision of Article 40 of the Corporate Income Tax Law must file a tax return on PDPO/S Form on this basis.

However, the payer does not submit a return in cases where, by applying the provisions of the double taxation avoidance agreement, the tax is paid in another country, provided that at the time of the taxable event, the payer has evidence that the non-resident legal entity is a resident of the country with which the agreement is concluded and that it is the actual owner of the income. The non-resident proves the status of a resident of the state with which the Agreement on avoidance of double taxation is concluded by a certificate of residency certified by the competent authority of the other contracting state of which it is a resident on form (POR-2) or a certified translation of the certificate on a form prescribed by the competent authority of the state with which the UIDO is concluded. Instructions for submitting this tax return can be read on the Tax Administration website, www.purs.gov.rs, in the section Legal Entities/Corporate Income Tax-PDP/Instructions.

A corporate income tax return due to inactivity on PDP Form must be filed if the taxpayer has submitted a Statement of Inactivity to the Business Registers Agency. The tax return is filed through the e-taxes portal by selecting the PDP return option and choosing the option - Due to inactivity.

Non-profit organizations that have not generated market revenues in the previous year are not subject to corporate income tax and are not required to file a corporate income tax return for that year.

Non-profit organizations that generate income from selling products in the market or providing services for a fee are subject to corporate income tax and are required to file a corporate income tax return for that year using PDP Form.

When a natural person leases real estate to a legal entity or sole proprietor, the tax return is not submitted by the landlord - the natural person- but by the tenant - the legal entity or sole proprietor on the PPP PD form. In this case, the legal entity or sole proprietor is responsible for calculating and paying the withholding tax on real estate income.

User instructions for applying the regulations on tax return for withholding tax can be found on the Tax Administration website www.purs.gov.rs, in the section Unified Collection of Taxes and Benefits/Tax Regulations.

A natural person (landlord) who earns income from leasing their own real estate to another individual is liable for income tax on real estate and must submit a tax return on PP OPO Form. The tax rate on real estate income is 20%. The tax base is the gross income reduced by standardized costs of 25%, or by actual costs incurred in earning and maintaining the income.

In field 4.2 - income type code, enter the code 1 11 405 00 0, for income from leasing own real estate with recognized standardized costs of 25%.

In field 4.6 - gross income (earned income), enter the contracted gross amount based on the lease, which includes the tax amount that the landlord receives from the tenant.

In field 4.7 - tax base, enter the amount obtained by reducing the gross income (from field 4.6) by the standardized costs of 25%.

On the Tax Administration website in the section Natural persons/Legislation Overview/User Instructions/User Instructions for submitting a tax return on self-assessed tax and corresponding contributions on salaries, or other types of income by an individual as a taxpayer - PP OPO - on pages 22 and 23, you can see an example of how to fill out the PP OPO form.

The PP OPO tax return must be submitted either electronically or in written form directly to the competent organizational unit of the Tax Administration where the property is located. Exceptionally, the PP OPO can be submitted via mail if there is no possibility for electronic or direct submission.

The tax return must be submitted within 30 days from the day the income is generated, and within this period, the tax shown and the corresponding benefits must also be paid.

The competent organizational unit that receives the tax return in written form will enter the data into the Tax Administration information system on the same day, in the presence of the applicant, and will inform them about the assigned application number, approval number for tax liability payment, and the unique payment account for the deposit.

Instructions for submitting the PP OPO can be read on the Tax Administration website www.purs.gov.rs, under the section Individuals/Legislation Overview/User Instructions.

Sole proprietors who pay personal income tax and benefits based on self-employment on a flat-rate income and have no changes in conditions and scope of business, turnover, or other conditions affecting the amount of tax liability under flat-rate taxation by 31 December of the current year, are not obligated to submit PPDG-1R, starting from 1 January of the following year.

A sole proprietor whose business volume, turnover, or other relevant conditions significantly change in the year preceding the tax assessment year, must submit a tax return by 31 January of the tax assessment year.

A sole proprietor who has been granted the right to flat-rate taxation uses this method of taxation until it is determined that the reasons for flat-rate taxation have ceased, or that changed conditions exclude the right to flat-rate taxation, and is not obliged to submit a request for flat-rate taxation to the competent tax authority by 31 October of the current year for the following year.

If the reasons for flat-rate taxation have ceased, or if there have been changes in conditions that would exclude the right to flat-rate taxation, the competent tax authority will, by decision, order the sole proprietor to maintain business books from the middle of the current year or from the beginning of the next year.

As of 1 March 2019, taxpayers can obtain tax certificates electronically. The tax certificate on fulfilled obligations in electronic form can be downloaded via the Tax Administration portal (eTaxes portal).

Access to the eTaxes portal requires an electronic digital certificate, while the authenticity of the electronic certificate can be verified without an electronic certificate.

The Tax Administration of the Republic of Serbia has enabled the issuance of electronic certificates on paid liabilities on all payment accounts of public revenues, certificates on paid benefits for health insurance, certificates on paid value-added tax, and certificates on paid taxes and benefits after deduction without the need to visit the branches of the Tax Administration.

Following the amendment to the Law on National Administrative Fees, starting from 14 December 2019, no fee is charged for issuing certificates by the Tax Administration electronically, with automatic data retrieval from the Tax Administration records via electronic communication means.

The authenticity of the tax certificate issued in this manner is verified using a "verification code" on the Tax Administration website (http://www.purs.gov.rs/). A Qualified Electronic Certificate is not required for verifying the authenticity of the issued eCertificate.

Complaints regarding the non-issuance of fiscal receipts can be reported every working day from 7:30 AM to 3:30 PM at the phone numbers: 011/361 99 00 or 011/347 90 61.

You can also report through the Tax Administration website, https://www.purs.gov.rs/ Contact Center / Report irregularities related to the issuance of fiscal receipts or via the link https://www.purs.gov.rs/contact/contact-center/irregularities-fiscal-receipts.html.

Irregularities in the operation of taxpayers - conducting unregistered activities, employing undeclared workers, etc., can be reported every working day from 8:00 AM to 6:00 PM, by calling the Contact Center at the phone numbers 0700-700-007 and 011-6969-069 and selecting option 3 on the voice menu.

Reports can also be submitted through the Tax Administration website, /https://www.purs.gov.rs/ Contact Center/Report tax irregularities or via the link https://www.purs.gov.rs/contact/contact-center/report-tax-irregularities-form.html.

Citizens can report any irregularities in the operations of taxpayers through a free smartphone application (for both Android and iPhone devices) called the "tax alarm". This app allows for quick and easy submission of reports by entering data or a picture of the business entity or the observed irregularity. Users can choose to submit their reports anonymously or identify themselves, depending on the option they select. Users of the app automatically receive an electronic notification confirming the successful submission of their report, which is immediately visible in the Tax Administration system.

Those who do not comply with the law and avoid paying taxes and other public revenues can be reported by submitting a request for control to the competent branch of the Tax Administration according to the residence of the individual or the headquarters of the legal entity. The request for control can also be submitted to the Central Tax Administration at Cara Dušana 145, Zemun.

To withdraw the granted authorization, you need to contact the person who gave the authorization, as only the taxpayer themselves, or the legal representative of the corporate taxpayer, can grant and revoke the authorization for submitting tax returns electronically. Granting or revoking authorization can be done in two ways:

- using the electronic service of the Tax Administration, if the grantor has a valid qualified electronic certificate;

- by submitting an application for granting or revoking authorization on the PEP Form- Authorization for the use of electronic services to the competent organizational unit of the Tax Administration.

The taxpayer can obtain information on the individual tax accounts' balance (account inquiry) in two ways: via the eTaxes portal (for the current year) and from the Contact Center.

Through the eTaxes portal, a taxpayer can download a statement of account for the current year if they possess a qualified electronic certificate. They select the "Account Inquiry" option, choose between synthetic or analytic. They enter their email address and proceed to the "Send Request for Account Verification" option. Afterwards, they receive a notification at the entered email address, and the account cards can only be downloaded through the eTaxes portal.

Through the Contact Center, a taxpayer can obtain account cards for the current year as well as cards from previous years, dating back to 2003.

By calling the Contact Center at 0700-700-007 or 011/6969-069, and selecting option 2 - account inquiry, you submit a request to receive individual information about the balance of tax accounts which will be forwarded the next day to the email address.

To use the service of obtaining information about the individual tax accounts' balance via the Contact Center, a taxpayer must first register by submitting an EKPL/EKFL form to the Tax Administration. EKPL/EKFL registration forms are available on the Tax Administration website at http://www.purs.gov.rs/contact/contact-center/individual-information.html.

You can submit the completed, signed, and scanned form electronically to the email address kc-ekpl@purs.gov.rs or by mail to the address: Tax Administration, Postal box 93, Cara Dušana 145, Zemun.

As of 1 January 2007, local government units fully assess, collect, and control property tax (except for taxes on the transfer of property, inheritance, and gifts).

Therefore, all information regarding property tax and the possibility of checking the account status can be obtained from the Public Revenue Administration at the local government units (municipalities) where the property is located.

The income payer - a resident legal entity does not have a legal basis to submit a revised tax return PDPO/S, if a non-resident legal entity that earned income taxable at source subsequently provides a certificate of residency, since the originally submitted tax return, based on which the tax on profits at source was calculated and paid in accordance with the provisions of Art. 40 of the Corporate Profit Tax Law, does not contain a "mistake or omission."

The non-resident legal entity has the right, through the income payer, to submit a request for a refund of the overpaid tax, since the difference between the amount of tax paid and the amount of tax that would have been due if the income payer had had the certificate of residency at the time of income payment, is considered overpaid tax in accordance with Article 40a Corporate Profit Tax Law.

The income payer submits the subsequently obtained certificate of residency to the Tax Administration along with the request for a refund of the overpaid tax, based on which the Tax Administration is obligated to issue a decision approving the refund within 15 days of receiving the request, if it determines that in the specific case it concerns tax overpaid at source.

The Tax Administration may, upon a substantiated request from the taxpayer, approve the postponement of payment of owed taxes in installments, but for no longer than 60 months, with the possibility of using deferred payment for up to 12 months.

The taxpayer can submit a request in electronic form via the Tax Administration portal or in written form - directly or by mail.

The postponement of payment of owed taxes is carried out by signing an agreement between the Tax Administration and the taxpayer, or by a decision of the Tax Administration.

A taxpayer who has been granted a postponement of tax payment and who regularly meets the installment payments, including current obligations, will have 50% of the interest related to that debt waived for that period, upon the completion of every 12 months, until the debt is fully settled.

When a taxpayer pays off the owed tax in full before the installment payment period expires, 50% of the interest on that debt is written-off.

When submitting a request for a refund of overpayment (i.e., tax and secondary tax levies that were overpaid or incorrectly paid), it is necessary to consider the statute of limitations. If it is determined during the procedure that the statute of limitations has expired, the Tax Administration will issue a decision rejecting the request.

The right to a refund expires within five years, and this period begins from the first day of the following year from the year in which the taxpayer acquired the right to a refund. The statute of limitations can be interrupted by any action taken to exercise the right to a refund, and after the interruption, the statute of limitations begins to run anew, and the time elapsed before the interruption is not counted in the statute of limitations period.

Whether there has been an interruption of the statute of limitations and whether, in connection with this, the right to a refund has expired or not, is determined in each specific case by the competent organizational unit of the Tax Administration.

The taxpayer's right to a refund, regardless of whether there was a statute of limitations interruption, always expires within ten years from the end of the year in which the taxpayer acquired that right (absolute statute of limitations).

The right to a refund of beneficts for mandatory pension and disability insurance and benefits for mandatory health insurance does not expire.

The taxpayer can submit a request for a refund of overpayment (overpaid or incorrectly paid tax, or secondary tax levies) electronically through the Tax Administration's portal or in written form, either directly or by mail.

Via a designated electronic application, taxpayers have been enabled to submit requests for refund/reallocation of overpayment (overpaid or incorrectly paid) public revenues electronically via the Tax Administration's portal as of 4 January 2021.

The decision regarding refunds and reallocations will be delivered to taxpayers in electronic form via their tax inbox.

Taxpayers are still able to submit a request for refund and reallocation of overpaid or incorrectly paid tax to the Tax Administration in written form - directly or by mail.

The Tax Administration is obliged to issue a decision on the request without delay, and no later than within 15 days from the date of receipt of the request, unless otherwise provided by tax law.

The Tax Administration will decide on the request within 15 days from the date of receipt, and upon conducting the procedure, if the request is justified, will issue a decision approving the refund. If the refund is not executed within 30 days from the date of receipt of the request, you are entitled to interest calculated on the amount of overpaid tax. Exceptionally, if the basis for the refund is a canceled or amended decision or other act of charge, interest is calculated from the day of the tax payment.

An error in recording the tax liability can also occur in situations where you have submitted the same tax return two or more times, or you have recorded the tax liability of one taxpayer as the tax liability of another taxpayer, or when recording the tax liability you entered the wrong amount, when you do not submit an amended tax return but a Request for Correction of Error on ZIG form.

You can submit a Request for Correction of Error (RCE) electronically via the Tax Administration's eTaxes portal. User instructions for submitting the Request for Correction of Error (RCE) electronically through the eTaxes portal can be found on the Tax Administration's website, www.purs.gov.rs / Legal Entities / Regulations Overview / User Instructions or via the link: https://www.purs.gov.rs/legal-entities/regulations-overview/userinstructions/10423/user-instruction-for-submitting-rce-form.html.

The Tax Administration will decide on the request within 15 days from the date of receipt, issue a decision on approval, rejection, or dismissal, and deliver it to the taxpayer electronically via the Tax Inbox.

In addition to electronic submission, the Request for Correction of Error (RCE) can also be submitted in paper form through the Tax Administration's office.

Suppose you find that the tax return you submitted to the Tax Administration contains an error that results in an incorrectly assessed level of tax liability, or another type of omission (e.g., you omitted one or more income recipients, or entered incorrect income codes, miscalculated the base...). In that case, you need to immediately submit an amended tax return in which you will correct the error or omission. By submitting an amended tax return, you will avoid the potential for a criminal act or offence.

The possibility of submitting an amended tax return is prescribed by Article 40 of the LTPTA, as well as situations in which it is not possible to submit an amended tax return:

- if the obligation shown in the tax return you want to amend has become statute-barred;

- if you have already submitted an amended tax return for the specific return twice;

- if a tax audit process has been initiated for the audited tax period and

- if the Tax Administration has issued a decision on assessing the tax,

- after the tax police have initiated actions to detect tax crimes.

In the mentioned situations, you are obliged to pay the liabilities that are shown in the tax return in which you made an error or omission.

For submitting an amended PPP-PD, we refer you to the Tax Administration website in the section Legal Entities/Consolidated Collection/Answers to Questions/ read Question number 35, which explains in detail the procedure for submitting an amended PPP-PD tax return.