Don’t miss January 2023 edition - stay up with the latest tax news
I. Rulebook on interest rates in accordance with the ?arm's length“ principle for the year 2022
The Minister of Finance adopted the Rulebook on interest rates that are under the "arm’s length" principle for 2022.
The Rulebook prescribes the interest rates calculated on loans between related parties for the year 2022, under the "arm’s length" principle.
The prescribed interest rates for banks and providers of financial leasing and other companies are listed below.
II. Update of SEF tax categories
The Ministry of Finance announced the updated tax categories of the electronic invoice system on December 30, 2022.
The update refers to changes regarding the description of some tax categories, in terms of their use, and the following updated rules apply to the two mentioned tax categories, starting from January 1, 2023, which are listed in the article.
III. Extension of the deadline limiting the increase of the tax base for lump-sum taxpayers
In the "Official Gazette of RS", number 141 of December 23, 2022, an amendment to the Regulation on closer conditions, criteria, and elements for lump-sum taxation of self-employed taxpayers was published, which extends the limiting the increase in the tax base for lump-sum taxpayers to no more than 10% deadline to 2023. It is expected that in this way, many taxpayers, who pay a lump-sum tax, will avoid significantly higher tax obligations in 2023.
Thus, with the amendment of the Regulation, in case the method of determining the lump-sum tax changes, and the determined amount of the base increases by more than 10% compared to the amount determined for the previous year, an increase of 10% per year will be applied until the amount of the obligation reaches the amount that is under the new method of calculation, ending with 2023.
IV. Changes in the JCI electronic verification method?
The Rulebook on Amendments to the Rulebook on the form, content, method of submitting and filling out declarations and other forms in the Customs Procedure, which entered into force on December 24, 2022, prescribes changes in terms of the filing declarations in electronic form, as well as filling out the unified customs documents (JCI).
Thus, from December 24, 2022, the Customs Administration certifies the declaration in electronic form with a qualified electronic certificate and delivers the customs debt notification in electronic form to the declarant/representative.
Additionally, amendments were made to Annex 5 – Filling out a unified customs document, in part III – Filling out of the JCI sections for export, re-export, temporary export of goods and outward processing, as well as to part IV - Filling out the JCI sections for placing goods in free traffic, temporary import, active processing, re-import, customs storage and destruction of goods.
V. Amendments to the regulation on determining activities for which there is no obligation of recording retail transactions via an electronic fiscal device
At the session of the Government of the Republic of Serbia, which was held on December 22, 2022, the Regulation on Amendments to the Regulation on Determining Activities for which there is no obligation to record retail transactions via an electronic fiscal device was adopted.
One of the novelties introduced by the Regulation is that there is no longer an obligation to record retail sales and received advances for retail sales through the electronic fiscal device for the activity of providing marketing services in a retail establishment to legal entities, i.e. taxpayers of self-employment income tax.
VI. Amendments to the law on tax procedure and tax administration
On December 9, 2022, the National Assembly of the Republic of Serbia adopted the Law on Amendments to the Law on Tax Procedure and Tax Administration. The Law was published in the Official Gazette of the Republic of Serbia and will enter into force on December 20, 2022.
Read the most significant changes to the Law on Tax Procedure and Tax Administration.
VII. Application of electronic invoices
As of January 1, 2023, the application of electronic invoices is also mandatory for transactions between entities of the private sector that are registered in the VAT system, which completes the process of introducing the electronic invoicing system (SEF) in the Republic of Serbia.
Until the beginning of this year, SEF was used for issuing and receiving electronic invoices by public funds users, as well as companies that do business with the public sector.
The Ministry of Finance expects that the implementation of electronic invoices will increase the competitiveness and attractiveness of the Serbian economy, due to business improvement, and greater transparency, as well as facilitate much faster VAT refunds. Thus, it is expected that, by matching outgoing and incoming invoices in SEF, the VAT amount refund will be possible within 24 or 48 hours, automatically, without additional checks, instead of the current 35 to 40 days deadline.
VIII. Average earnings per employee, October 2022
Average gross earnings calculated for October 2022 amounted to RSD 104 039, while average earnings without taxes and contributions - net earnings amounted to RSD 75 353.?
The growth of gross wages in the period January-October 2022, compared to the same period last year, was 14.0% in nominal terms, i.e. 2.4% in real terms. At the same time, net wages increased by 13.9% in nominal terms and by 2.3% in real terms.
Compared to the same month of the previous year, the average gross salary for October 2022 is nominally higher by 14.2%, and in real terms, it is lower by 0.7%, while the average net salary is nominally higher by 14.1%, and lower by 0.8% in real terms.
Median net earnings amounted to RSD 57 810 in October 2022, which means that 50% of employees earned up to the stated amount.
?IX. Consumer price index, November 2022
Consumer price index measure changes in the prices of products and services that households purchase to meet their needs and are used as a measure of inflation.
In November 2022, the prices of personal consumption products and services increased by 1.0% on average compared to October 2022. Compared to the same month of the previous year, consumer prices increased by 15.1% in November 2022, while compared to December 2021, they increased by an average of 14.6%.
Observed by the main groups of products and services classified according to the purpose of consumption, in November 2022, compared to the previous month, price growth was recorded in the group's Restaurants and hotels (1.7%), Clothing and footwear (1.3%), Food and non-alcoholic beverages (1.2%), Housing, water, electricity, gas and other fuels, Transport and Housing equipment and ongoing maintenance (by 1.0% each), Alcoholic beverages and tobacco, Recreation and culture, Health and Education (by 0.5% each) and in the Communications group (0.1%). The prices of other products and services did not change significantly.
According to the consumer price trends data:
X. New salary calculation parameters
Following the Decision on the amount of the minimum labour price for the period January - December 2023, as well as with the amendments to the Law on Personal Income Tax and the Law on Contributions for Mandatory Social Security, below are the parameters for calculating wages in the 2023 year.
XI. The reference interest rate increased to 5%
At the session held on December 8, 2022, the Executive Board of the National Bank of Serbia decided to increase the reference interest rate to the level of 5%.?
The increase in the reference interest rate directly reflects the increase in the default interest rate, as well as in the increase in the interest rate for untimely paid public revenues, therefore the annual default interest rate amounts to 13%, while the annual interest rate for untimely paid public revenues amounts to 15%.?
The next session of the Executive Board will be held on January 12, 2023, when the decision regarding the reference interest rate for the upcoming period will be made.
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